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Structural Transformation of Economies of the Economic Community of West African States: An Empirical Analysis

Received: 6 July 2020     Accepted: 24 July 2020     Published: 10 August 2020
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Abstract

This paper analyses the structural transformation process of ECOWAS economies through an exploratory approach of stylized facts analysis on added value, employment, productivity and intra- and inter-sectoral mobility of labour factor, followed by an econometric approach in balanced panel data from 1991 to 2017 for the 15 countries in the region. The analysis revealed the beginnings of a structural transformation process in some ECOWAS economies, especially Ghana, Nigeria and Senegal, and more or less Burkina Faso and Guinea. The positive effects of the mobility of labour factor, albeit timid and at slow pace, from the agricultural sector to the industrial (manufacturing industry mainly) and services sectors, could be limited, on the one hand, by the low level of human capital development and on the other hand by a reverse itinerary characterized by the hegemony of the activities of the service sector, in terms of the proportion of value added and employment. In this regard, it appears that reforms aimed at strengthening the development of human capital could contribute to the acceleration of the productivities of industrial sector activities in general and manufacturing in particular through the channel of the accumulation of knowledge, know-how and technology. Economies could thus benefit from the growing prospects of attracting FDI in relation to the growing economic and geopolitical interests of foreign investors for Africa in general and ECOWAS in particular.

Published in Journal of Business and Economic Development (Volume 5, Issue 3)
DOI 10.11648/j.jbed.20200503.14
Page(s) 138-156
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Economic Structural Transformation, Productivity, Labor Mobility, Capital Intensity, Economic Complexity

References
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[8] Lopes Carlos (2019), “Africa in Transformation: Economic Development in the Age of Doubt”, Palgrave Macmillan.
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[10] McMillan, M., & Rodrik, D. (2011) “Globalization, structural change and productivity growth”. In M. Bacchetta, & M. Jense (Eds.), Making globalization socially sustainable (pp. 49–84). Geneva: International Labour Organization and World Trade Organization.
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[16] Santigie Mohamed K., (2017), " Foreign Direct Investment and Economic Growth in Africa”, Thesis Presented for the Degree of DOCTOR OF PHILOSOPHY, School of Economics of UNIVERSITY OF CAPE TOWN, April 2017.
[17] Sebego, M. et Sanga, D. (2018) " Croissance économique dans la zone de la Communauté Economique des Etats de l’Afrique de l’Ouest: soutenabilité, durabilité et inclusivité". Revue Afrique et Développement, Volume XLIII, No. 2, 2018, pp. 1-34.
[18] Sun, Xiaolun, (2002), “Foreign Direct Investment and Economic Development What Do States Need To Do? Paper prepared for the Capacity Development Workshops and Global Forum on Reinventing Government on Globalization, Role of the State and Enabling Environment, Marrakech, Morocco, December 10-13, 2002.
[19] Timmer, M. P., de Vries, G. J., (2007) “A cross-country database for sectoral employment and productivity in Asia and Latina America, 1950-2005. Groningen Growth and Development Center Research Memorandum GD-98. Greningen: University of Groningen. Structural change and growth accelerations in Asia and Latin America: a new sectoral data set”. Cliometrica 3 (June (2)), 165–190.
[20] Timmer, M. P., de Vries, G. J., (2009) “Structural change and growth accelerations in Asia and Latin America: a new sectoral data set”. Cliometrica 3 (June (2)), 165–190.
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  • APA Style

    Dimitri Sanga, Mamoudou Sebego. (2020). Structural Transformation of Economies of the Economic Community of West African States: An Empirical Analysis. Journal of Business and Economic Development, 5(3), 138-156. https://doi.org/10.11648/j.jbed.20200503.14

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    ACS Style

    Dimitri Sanga; Mamoudou Sebego. Structural Transformation of Economies of the Economic Community of West African States: An Empirical Analysis. J. Bus. Econ. Dev. 2020, 5(3), 138-156. doi: 10.11648/j.jbed.20200503.14

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    AMA Style

    Dimitri Sanga, Mamoudou Sebego. Structural Transformation of Economies of the Economic Community of West African States: An Empirical Analysis. J Bus Econ Dev. 2020;5(3):138-156. doi: 10.11648/j.jbed.20200503.14

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  • @article{10.11648/j.jbed.20200503.14,
      author = {Dimitri Sanga and Mamoudou Sebego},
      title = {Structural Transformation of Economies of the Economic Community of West African States: An Empirical Analysis},
      journal = {Journal of Business and Economic Development},
      volume = {5},
      number = {3},
      pages = {138-156},
      doi = {10.11648/j.jbed.20200503.14},
      url = {https://doi.org/10.11648/j.jbed.20200503.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20200503.14},
      abstract = {This paper analyses the structural transformation process of ECOWAS economies through an exploratory approach of stylized facts analysis on added value, employment, productivity and intra- and inter-sectoral mobility of labour factor, followed by an econometric approach in balanced panel data from 1991 to 2017 for the 15 countries in the region. The analysis revealed the beginnings of a structural transformation process in some ECOWAS economies, especially Ghana, Nigeria and Senegal, and more or less Burkina Faso and Guinea. The positive effects of the mobility of labour factor, albeit timid and at slow pace, from the agricultural sector to the industrial (manufacturing industry mainly) and services sectors, could be limited, on the one hand, by the low level of human capital development and on the other hand by a reverse itinerary characterized by the hegemony of the activities of the service sector, in terms of the proportion of value added and employment. In this regard, it appears that reforms aimed at strengthening the development of human capital could contribute to the acceleration of the productivities of industrial sector activities in general and manufacturing in particular through the channel of the accumulation of knowledge, know-how and technology. Economies could thus benefit from the growing prospects of attracting FDI in relation to the growing economic and geopolitical interests of foreign investors for Africa in general and ECOWAS in particular.},
     year = {2020}
    }
    

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  • TY  - JOUR
    T1  - Structural Transformation of Economies of the Economic Community of West African States: An Empirical Analysis
    AU  - Dimitri Sanga
    AU  - Mamoudou Sebego
    Y1  - 2020/08/10
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    DO  - 10.11648/j.jbed.20200503.14
    T2  - Journal of Business and Economic Development
    JF  - Journal of Business and Economic Development
    JO  - Journal of Business and Economic Development
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    EP  - 156
    PB  - Science Publishing Group
    SN  - 2637-3874
    UR  - https://doi.org/10.11648/j.jbed.20200503.14
    AB  - This paper analyses the structural transformation process of ECOWAS economies through an exploratory approach of stylized facts analysis on added value, employment, productivity and intra- and inter-sectoral mobility of labour factor, followed by an econometric approach in balanced panel data from 1991 to 2017 for the 15 countries in the region. The analysis revealed the beginnings of a structural transformation process in some ECOWAS economies, especially Ghana, Nigeria and Senegal, and more or less Burkina Faso and Guinea. The positive effects of the mobility of labour factor, albeit timid and at slow pace, from the agricultural sector to the industrial (manufacturing industry mainly) and services sectors, could be limited, on the one hand, by the low level of human capital development and on the other hand by a reverse itinerary characterized by the hegemony of the activities of the service sector, in terms of the proportion of value added and employment. In this regard, it appears that reforms aimed at strengthening the development of human capital could contribute to the acceleration of the productivities of industrial sector activities in general and manufacturing in particular through the channel of the accumulation of knowledge, know-how and technology. Economies could thus benefit from the growing prospects of attracting FDI in relation to the growing economic and geopolitical interests of foreign investors for Africa in general and ECOWAS in particular.
    VL  - 5
    IS  - 3
    ER  - 

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Author Information
  • United Nations Educational, Scientific and Cultural Organization, West Africa-Sahel Regional Office, Dakar, Senegal

  • United Nations Economic Commission for Africa, West Africa regional Office, Niamey, Niger

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