Economic transformation in Africa from the bottom up: Evidence from Tanzania

Economic transformation in Africa from the bottom up: Evidence from Tanzania PDF

Author: Diao, Xinshen

Publisher: Intl Food Policy Res Inst

Published: 2017-02-03

Total Pages: 41

ISBN-13:

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At roughly 4 percent per year, labor productivity in Tanzania has grown more rapidly over the past 14 years than at any other time in recent history. Employment growth has also been strong, keeping up with population growth at roughly 2.5 percent per year; the bulk of employment growth (90 percent) has been in the nonagricultural sector. However, the vast majority of this nonagricultural employment growth has occurred in informal sector. Using Tanzania’s first nationally representative survey of micro-, small-, and medium-sized enterprises, this paper shows that firms in the informal sector contributed roughly half a percentage point to economywide labor productivity growth in Tanzania between 2002 and 2012. However, virtually all of the labor productivity growth contributed by informal firms came from a small subset of firms called the “in-between firms.” This paper considers attributes of the in-between firms that could be used for targeting financial and business services to firms with the potential to grow. This paper finds two salient characteristics of in-between firms that might lend themselves to targeting—their owners are more likely to keep written accounts and more likely to keep their savings in formal bank accounts.

Africa’s manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms

Africa’s manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms PDF

Author: Diao, Xinshen

Publisher: Intl Food Policy Res Inst

Published: 2021-05-06

Total Pages: 85

ISBN-13:

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Recent growth accelerations in Africa are characterized by increasing productivity in agriculture, a declining share of the labor force employed in agriculture and declining productivity in modern sectors such as manufacturing. To shed light on this puzzle, we disaggregate firms in the manufacturing sector by size using two newly created panels of manufacturing firms, one for Tanzania covering 2008-2016 and one for Ethiopia covering 1996-2017. Our analysis reveals a dichotomy between larger firms that exhibit superior productivity performance but do not expand employment much, and small firms that absorb employment but do not experience any productivity growth. We suggest the poor employment performance of large firms is related to use of capital-intensive techniques associated with global trends in technology.

The Transformation of Rural Africa

The Transformation of Rural Africa PDF

Author: T. S. Jayne

Publisher: Routledge

Published: 2020-04-28

Total Pages: 205

ISBN-13: 0429833466

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Contemporary discussions of Africa’s recent growth have largely interpreted such growth in terms of structural transformation, based mainly on national- and sectoral-level data. However, the micro-level processes driving this transformation are still unclear and remain the subject of debate. This collection provides a micro economic foundation for understanding the particular growth processes at work within the region’s rural areas, and in so doing provides important insights for policy action. The book provides valuable household- and farm-level evidence about the drivers of rural labour productivity, improvements in access to markets, investment in food value chains, and indeed the role of rural economic growth in Africa’s ongoing rural transformation processes. Some of the features of Africa’s ongoing rural transformation are similar to those of agricultural transformation as experienced in Asia and elsewhere. However, other features of Africa’s rural transformation are unique, and pose important challenges for development policy and planning. Together, the studies compiled in this volume provide an updated, evidence-based, and policy-relevant understanding of where African countries are in their developmental trajectories and the region’s prospects for achieving inclusive forms of development over the next several decades. This book was originally published as a special issue of the Journal of Development Studies.

Sustaining Tanzania's Economic Development

Sustaining Tanzania's Economic Development PDF

Author: Oliver Morrissey

Publisher: Oxford University Press

Published: 2024-05-08

Total Pages: 241

ISBN-13: 019288574X

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This book investigates the performance of firms and households in Tanzania and the strategies they adopt to navigate shocks, achieve sustainability, and build resilience to sustain their growth and development. The contributions show that Tanzania, like many countries, faces a challenging future but is better positioned to do so than it has been.

Tanzania

Tanzania PDF

Author: Christopher Adam

Publisher: Oxford University Press

Published: 2017

Total Pages: 330

ISBN-13: 019870481X

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This volume examines key policy challenges facing Tanzania over the coming decades in the areas of agriculture, trade, urbanization, employment, finance, and natural investment.

Prospects for the Myanmar rubber sector: An analysis of the viability of smallholder production in Mon State

Prospects for the Myanmar rubber sector: An analysis of the viability of smallholder production in Mon State PDF

Author: Van Asselt, Joanna

Publisher: Intl Food Policy Res Inst

Published: 2017-02-23

Total Pages: 36

ISBN-13:

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As a result of recent political reforms, Myanmar has the opportunity to enact major policy changes to reinvigorate its agriculture sector. In this context, Myanmar’s rubber sector has the potential to become an even greater source of export earnings and rural household incomes, but there are major challenges related to low rubber productivity and poor rubber quality. Using data from the Mon State Rural Household Survey (MSRHS) conducted from May to June 2015, as well as qualitative data collected from rubber producer focus groups and other interviews with rubber producers, traders, and processors, this paper describes the cost structure of rubber production in Mon State. We then estimate smallholder production costs and the profitability of smallholder rubber production under various alternative yield and price scenarios. The results suggest that if the weaknesses hindering the profitability of the rubber sector are not addressed, the rubber sector will likely stagnate. Moreover, in the absence of a major increase in world prices (substantially above the 2000–2016 average), new rubber investments will not be profitable without major improvements in yield and quality. Further, increasing only yields or only quality, or only improving the institutional environment, will not result in positive returns on investment for smallholders; reforms are needed in all three areas. If these weaknesses are addressed, however, Myanmar’s new investments will be profitable and Myanmar could become an important rubber producer and exporter on the world stage.

The impact of Ethiopia’s Productive Safety Net Programme on the nutritional status of children: 2008–2012

The impact of Ethiopia’s Productive Safety Net Programme on the nutritional status of children: 2008–2012 PDF

Author: Berhane, Guush

Publisher: Intl Food Policy Res Inst

Published: 2017-02-03

Total Pages: 36

ISBN-13:

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Ethiopia’s Productive Safety Net Programme (PSNP) is a large-scale social protection intervention aimed at improving food security and stabilizing asset levels. The PSNP contains a mix of public works employment and unconditional transfers. It is a well-targeted program; however, several years passed before payment levels reached the intended amounts. The PSNP has been successful in improving household food security. However, children’s nutritional status in the localities where the PSNP operates is poor, with 48 percent of children stunted in 2012. This leads to the question of whether the PSNP could improve child nutrition. In this paper, we examine the impact of the PSNP on children’s nutritional status over the period 2008–2012. Doing so requires paying particular attention to the targeting of the PSNP and how payment levels have evolved over time. Using inverse-probability-weighted regression-adjustment estimators, we find no evidence that the PSNP reduces either chronic undernutrition (height-for-age z-scores, stunting) or acute undernutrition (weight-for-height z-scores, wasting). While we cannot definitively identify the reason for this nonresult, we note that child diet quality is poor. We find no evidence that the PSNP improves child consumption of pulses, oils, fruits, vegetables, dairy products, or animal-source proteins. Most mothers have not had contact with health extension workers nor have they received information on good feeding practices. Water practices, as captured by the likelihood that mothers boil drinking water, are poor. These findings, along with work by other researchers, have informed revisions to the PSNP. Future research will assess whether these revisions have led to improvements in the diets and anthropometric status of preschool children in Ethiopia.

Enterprise and Economic Development in Africa

Enterprise and Economic Development in Africa PDF

Author: Dina M. Nziku

Publisher: Emerald Group Publishing

Published: 2021-06-11

Total Pages: 268

ISBN-13: 180071324X

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Presenting a topical analysis of the challenges and achievements of enterprise, Enterprise and Economic Development in Africa examines contributions to economic development on the continent, as well as exploring implications for policy dimensions.

Can better targeting improve the effectiveness of Ghana's Fertilizer Subsidy Program?

Can better targeting improve the effectiveness of Ghana's Fertilizer Subsidy Program? PDF

Author: Houssou, Nazaire

Publisher: Intl Food Policy Res Inst

Published: 2017-02-10

Total Pages: 36

ISBN-13:

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Despite improvements to the implementation regime of Ghana’s fertilizer subsidy program, this paper shows that considerable challenges remain in ensuring that the subsidy is targeted to farmers who need fertilizer the most. Currently, larger-scale and wealthier farmers are the main beneficiaries of subsidized fertilizer even though the stated goal is to target smallholder farmers with fertilizer subsidies. The experience of other African countries suggests that the effectiveness of fertilizer subsidies can improve with effective targeting of resource-poor smallholders. However, targeting smallholder farmers entails significant transaction costs and may even be infeasible in some cases. Faced with such challenges, Ghanaian policy makers must ponder the question of how to improve the targeting of input subsidy programs in the country. Further research is needed to identify more cost-effective approaches for achieving the goal of targeting.

The Economics of Frugal Innovation

The Economics of Frugal Innovation PDF

Author: Christian Le Bas

Publisher: Edward Elgar Publishing

Published: 2023-02-14

Total Pages: 186

ISBN-13: 1035302330

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In light of the tremendous growth of frugal product and process innovations in emerging markets and Northern economies, this book offers a clear understanding of this new direction of technological change with a Schumpeterian analytical frame. Characterising frugal innovation as a new technological paradigm, it illuminates the relationship between frugality and sustainability.