Sources of Manufacturing Productivity Growth in Africa

This paper investigates the sources of growth in manufacturing productivity in Cote D’Ivoire, Ethiopia and Tanzania in comparison with the case of Bangladesh. Based on the analysis of establishment census data since the mid-1990s, it finds that rea...

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Main Authors: Jones, Patricia, Lartey, Emmanuel K.K., Mengistae, Taye, Zeufack, Albert
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
Online Access:http://documents.worldbank.org/curated/en/991451566238875955/Sources-of-Manufacturing-Productivity-Growth-in-Africa
http://hdl.handle.net/10986/32313
id okr-10986-32313
recordtype oai_dc
spelling okr-10986-323132022-09-20T00:14:43Z Sources of Manufacturing Productivity Growth in Africa Jones, Patricia Lartey, Emmanuel K.K. Mengistae, Taye Zeufack, Albert MANUFACTURING PRODUCTIVITY ECONOMIC GROWTH INDUSTRIALIZATION MICROECONOMIC ANALYSES AGGREGATE PRODUCTIVITY This paper investigates the sources of growth in manufacturing productivity in Cote D’Ivoire, Ethiopia and Tanzania in comparison with the case of Bangladesh. Based on the analysis of establishment census data since the mid-1990s, it finds that reallocation of market share between firms contributed substantially to productivity growth in each of the four countries, although to a varying extent. In Ethiopia, the impact of market share reallocations among survivors tended to be larger than those associated with increases in within-plant productivity. In addition, plant closure (or exit) boosted productivity more than new plant openings (or entry) did in the sense that the relative productivity of survivors (or continuing plants) was higher relative to that of closing plants (or exit cases) than it was relative to the productivity of newly opening plants (or new entrants). Reallocation of market share plays an important role in raising aggregate productivity in Côte d’Ivoire as well. But the pattern here is opposite to that in Ethiopia in that in Côte d’Ivoire entering (or newly opening) plants have larger impact on aggregate productivity growth than closing (or exiting) plants. Unlike the case with Cote D’Ivoire and of Ethiopia, the reallocation of market share among surviving plants is a smaller source of manufacturing productivity growth in Tanzania than the new plant openings and plant closure. The data suggest that the reallocation of market share among surviving plants and exiting plants has larger impact on productivity growth in Bangladesh than the productivity gap between new plants and survivors, as in the case of Ethiopia. 2019-08-22T16:15:12Z 2019-08-22T16:15:12Z 2019-08 Working Paper http://documents.worldbank.org/curated/en/991451566238875955/Sources-of-Manufacturing-Productivity-Growth-in-Africa http://hdl.handle.net/10986/32313 English Policy Research Working Paper;No. 8988 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Bangladesh Cote d'Ivoire Ethiopia Tanzania
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic MANUFACTURING
PRODUCTIVITY
ECONOMIC GROWTH
INDUSTRIALIZATION
MICROECONOMIC ANALYSES
AGGREGATE PRODUCTIVITY
spellingShingle MANUFACTURING
PRODUCTIVITY
ECONOMIC GROWTH
INDUSTRIALIZATION
MICROECONOMIC ANALYSES
AGGREGATE PRODUCTIVITY
Jones, Patricia
Lartey, Emmanuel K.K.
Mengistae, Taye
Zeufack, Albert
Sources of Manufacturing Productivity Growth in Africa
geographic_facet Africa
Bangladesh
Cote d'Ivoire
Ethiopia
Tanzania
relation Policy Research Working Paper;No. 8988
description This paper investigates the sources of growth in manufacturing productivity in Cote D’Ivoire, Ethiopia and Tanzania in comparison with the case of Bangladesh. Based on the analysis of establishment census data since the mid-1990s, it finds that reallocation of market share between firms contributed substantially to productivity growth in each of the four countries, although to a varying extent. In Ethiopia, the impact of market share reallocations among survivors tended to be larger than those associated with increases in within-plant productivity. In addition, plant closure (or exit) boosted productivity more than new plant openings (or entry) did in the sense that the relative productivity of survivors (or continuing plants) was higher relative to that of closing plants (or exit cases) than it was relative to the productivity of newly opening plants (or new entrants). Reallocation of market share plays an important role in raising aggregate productivity in Côte d’Ivoire as well. But the pattern here is opposite to that in Ethiopia in that in Côte d’Ivoire entering (or newly opening) plants have larger impact on aggregate productivity growth than closing (or exiting) plants. Unlike the case with Cote D’Ivoire and of Ethiopia, the reallocation of market share among surviving plants is a smaller source of manufacturing productivity growth in Tanzania than the new plant openings and plant closure. The data suggest that the reallocation of market share among surviving plants and exiting plants has larger impact on productivity growth in Bangladesh than the productivity gap between new plants and survivors, as in the case of Ethiopia.
format Working Paper
author Jones, Patricia
Lartey, Emmanuel K.K.
Mengistae, Taye
Zeufack, Albert
author_facet Jones, Patricia
Lartey, Emmanuel K.K.
Mengistae, Taye
Zeufack, Albert
author_sort Jones, Patricia
title Sources of Manufacturing Productivity Growth in Africa
title_short Sources of Manufacturing Productivity Growth in Africa
title_full Sources of Manufacturing Productivity Growth in Africa
title_fullStr Sources of Manufacturing Productivity Growth in Africa
title_full_unstemmed Sources of Manufacturing Productivity Growth in Africa
title_sort sources of manufacturing productivity growth in africa
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/991451566238875955/Sources-of-Manufacturing-Productivity-Growth-in-Africa
http://hdl.handle.net/10986/32313
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