Applying the Growth Identification and Facilitation Framework: The Case of Zambia

Kiru Sichoongwe ,Philip Banahene Thompson ,Chrine Hapompwe

doi:10.7176/jesd/12-14-01

Kiru Sichoongwe , Philip Banahene Thompson + Show 1 more

Open Access

https://doi.org/10.7176/jesd/12-14-01

Copy DOI

Abstract

This paper applied the Growth Identification and Facilitation Framework (GIFF), a practical policy tool operationalizing key insights of New Structural Economics, to help policymakers in least developing countries (LDCs) to catching-up by developing feasible and sharply focused policies. In doing so, LDCs are able to identify and unlock their latent comparative advantages to achieve structural transformation. Also, a description of the economic development of Zambia, including agriculture, mining, manufacturing, tourism, import and export of products. Through the comparison with Vietnam, Indonesia, Morocco and Ghana, the paper points out the comparative advantages and development potential of Zambia, and how to transform these comparative advantages into competitive advantages. Based on the analysis of the constraints on the development of Zambia's agriculture, mining, tourism and other industries, the paper proposes some measures for the government to undertake so as to deal with these constraints, in order to promote the development of Zambia. Keywords: New Structural Economics, Economic Growth, Comparative Advantage, Growth Identification and Facilitation Framework, Zambia DOI: 10.7176/JESD/12-14-01 Publication date: July 31 st 2021

Highlights

Zambia is landlocked and a resource-rich country with a population of about 17.9 million people in the center of Southern Africa
Mining has played a key role in the economic and social development of Zambia and it remains a pillar to the Zambian economy [53]
According to the theoretical framework of New Structural Economics, we analysed the endowments of Zambia, selected Vietnam, Indonesia, Morocco and Ghana as the benchmarking countries, analysed the industries with comparative advantages in Zambia, and identified the constraints faced by relevant industries from the perspective of growth value chains

Summary

Introduction

Zambia is landlocked and a resource-rich country with a population of about 17.9 million people in the center of Southern Africa. According to NSE, the best approach for a country to achieve dynamic, inclusive, and long-term growth is for it to develop its sectors based on its comparative advantage defined by its endowments in a market economy with an enabling state. Identifying the Sectors for Growth in Zambia Based on the above analysis, Zambia has the development potential in agriculture, mineral, manufacturing and tourism sector.

Results

Conclusion