Manufacturing dynamics and structural transformation in CEMAC: diagnostic elements and examination of reforms

Economic development involves structural transformations which go hand-in-hand with reallocations of the labour force between the three main sectors of activity.

Active • February 01, 2021

Stylized development facts have long suggested that an economy should move from the primary to the secondary sector and then emerge with a tertiary sector to mark the advent of a post-industrial service society. The shift from the primary to the secondary sector is driven by productivity differentials, and by the long-term income elasticities of both domestic and global demand for manufactured goods. These elasticities are higher than those for primary products.

In a report produced for CEMAC, FERDI first took stock of the situation. It measured and commented on the share of manufacturing activities in GDP, making a comparison with what can be observed elsewhere in developing countries. Attention was then given to the effectiveness of export promotion in terms of market share gains, quality of international specialisation, and export growth  acceleration. The second part of the report is more about norms and focuses on a set of recommendations to suggest answers to the question - What are the major institutional and economic reforms that are likely to bring about the transformation of the CEMAC economies?

Plane. P, da Piedade C. (2021) Dynamique manufacturière et transformation structurelle en CEMAC:  éléments de diagnostic et identification de réformes (Manufacturing dynamics and structural transformation in CEMAC: diagnostic elements and identification of reforms), Report submitted to the CEMAC Commission, FERDI, September, 65 p.

Partners

  • Economic and Monetary Community of Central Africa - CEMAC

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