Is China an Opportunity for Industrialization in African Countries?

In this paper, we study the role of trade openness in the economic reallocation from the agriculture to the manufacturing sector in 34 sub‐Saharan African countries between 1970 and 2016. The results show that the long‐term evolution of trade openness negatively impacts the long‐run and the short‐run dynamics of structural change. Moreover, this impact goes through aggregate exports not aggregate imports. By breaking down global exports, we find that commodities exports have a negative impact while manufacturing exports positively impact structural change. These results are explained by the fact that, contrary to Asian countries, African countries have failed to put trade at the service of industrialisation by following the logic of comparative advantage. More precisely, they have failed to invest the revenues from commodities exports to improve the quality of infrastructure in order to remove the constraints on the economic relocation to labour‐intensive manufacturing activities. Unlike previous studies, we address the endogeneity problem by using a dynamic ordinary least squares method after a pooled mean group method.

Objective – The manufacturing sector plays an important role in any economy. However, Africa has experienced significant deindustrialisation over the last few decades, whilst economic growth has been on an upward trend over the same period. The high growth rates have mostly been propelled by improved macroeconomic stability and the commodity price boom. Further, the slowdown in commodity prices has recently caused a deceleration of economic growth which begs the question: Does promoting the manufacturing sector result in higher and sustainable economic growth and reduce unemployment? This study assesses the impact of the manufacturing sector on economic growth in 37 African countries. Methodology/Technique – This study employs the System-GMM Model for the period between 1990 and 2017. This technique is ideal as the number of cross-sectional units is greater than the number of time periods. This technique also caters for problems of endogeneity and heteroscedasticity. Findings – The results show that manufacturing value has a positive effect on economic growth in African countries. Therefore, it is recommended that policy makers enact measures to boost manufacturing output. Novelty –The deceleration of economic growth in African countries coupled with high unemployment and poverty levels has brought the issue of re-industrialisation into the spotlight. This study is vital for policy makers in African countries who seek to promote economic growth and employment levels. The study contributes to literature in African countries by incorporating variables such as human capital and institutional quality which are major determinants of economic growth. Type of Paper: Empirical. Keywords: Manufacturing Value Added; Economic Growth; African Countries; System-GMM. Reference to this paper should be made as follows: Moyo, C; Jeke, L. 2019. Manufacturing Sector and Economic Growth: A Panel Study of Selected African Countries, J. Bus. Econ. Review 4(3) 114 – 130 https://doi.org/10.35609/jber.2019.4.3(1) JEL Classification: C23, E23, O14, O40.

PurposeThis study examines the impact of China’s trade, aid and foreign direct investment (FDI) on the economic growth of Africa.Design/methodology/approachOur study covered 41 countries in Africa, cutting across the western, eastern, central, southern and northern sub-regions. The study adopted the dynamic system generalized method of moments (SGMM), feasible generalized least squares (FGLS) and Dumitrescu–Hurlin Panel Granger causality techniques for estimations.FindingsOverall, FDI, trade and aid from China have a nonlinear relationship with Africa’s economic growth. The findings reveal a key novelty in that the marginal effect on real per capita GDP increases when China’s FDI interacts with the manufacturing sector in Africa. These findings are robust to long-run estimations.Research limitations/implicationsGiven that we have examined the short-and long-run symbiotic effects of China’s FDI and Africa’s manufacturing sector and China’s aid and Africa’s manufacturing sector, more studies are warranted in this area, particularly to produce further empirical evidence of these findings. Moreover, future work could focus on investigating the country-specific effects of China’s trade, China’s FDI and China’s aid on real GDP per capita in each African country as our results reflect within-country elasticities.Originality/valueThis study provides new evidence on the impact of China’s trade, aid and FDI on the growth of African economies. To the best of our knowledge, this is the first study to empirically explore the long-run effects of China’s trade, FDI and aid on economic growth in African countries. This study also tests the claim of the displacement of Africa’s manufacturing industry by its Chinese counterparts.

Journal Article The Demand for LDC Exports of Manufactures: Estimates from Hong Kong Get access James Riedel James Riedel The Johns Hopkins University Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 98, Issue 389, 1 March 1988, Pages 138–148, https://doi.org/10.2307/2233515 Published: 01 March 1988

The levels of poverty and inequality in Africa are high in relation to the rest of the world. In order to reduce these twin ailments, more and better jobs need to be created. A key source of more and better jobs for developing countries is to be found in the manufacturing sector. Structural transformation involves the shift of productive resources from low productivity primary activities toward high productivity manufacturing activities. Therefore, understanding the constraints that countries face when trying to structurally transform and develop their manufacturing sector is important. In order to analyse the constraints to manufacturing growth, particularly in African countries, we employ the Atlas of Economic Complexity analytical framework developed by Hausmann & Hidalgo (2011). The analysis shows that, in general, African countries have not undergone manufacturing-led growth-inducing structural transformation. However, Africa is not one country, and the analysis demonstrates heterogeneity in the African experience, with some African countries exhibiting growth in their manufacturing sectors. The analysis indicates that the process of structural transformation is a path-dependent one, in which a country’s current productive capabilities embodied in its export structure, influence the extent to which it can shift production toward increased manufacturing activity. We argue that, with regard to manufacturing sector growth in Africa, there is no policy ‘silver bullet’. Rather, subsequent analysis needs to determine the specific productive capabilities required by manufacturing firms in African countries on a case-by-case basis.

Purpose: This paper presents an analysis of the effect of non-oil exports on the manufacturing sector growth in an oil-rich country in Africa – Nigeria from 1986 to 2018. In clear terms, we evaluated how manufacturing sector capacity utilization is affected by non-oil exports.
 Methods: The Ordinary Least Square (OLS) estimation technique was applied in estimating the model and was lagged by two years. The long-run relationship was determined using the traditional Johansen co-integration methodology. How manufacturing sector growth is affected by non-oil exports was evaluated using the Granger Causality technique. The Augmented Dicky-Fuller (ADF) and Phillips-Perron tests were applied to check the stationarity properties of the data.
 Results: The growth in the manufacturing sector in Nigeria has not been significantly affected by non-oil export despite the various non-oil export promotion strategies initiated by the government.
 Implication: A major implication of the finding is that the cost and access to financial services for non-oil exporters should be reduced or relaxed by the Central Bank of Nigeria. High-interest rates charged by commercial banks and little disbursement characterized by the volume of commercial banks credit affect manufacturing firms concerning acquiring modern plants and machinery which results in a poor quality of non-oil exports.

Navigating the challenges of neuro-oncology in Africa: addressing diagnostic and treatment barriers in the region: a correspondence

The Routledge Handbook of Industry and Development is a global overview of industrialisation. Each chapter will provide readers with contemporary insights into this this essential aspect of economic development. Industrialisation has been at the forefront of discussion on economic development since the earliest days of development economics. But over the last fifty years, the manufacturing sectors of different countries and regions have grown at strikingly different rates. In 1960 developing countries took a very small share of global manufacturing production. Today the position had changed radically with fast growth of manufacturing in many parts of what was originally the developing world, particularly in China and the rest of East Asia. On the other hand, countries in Africa and parts of Latin America have been largely left behind by this process of industrialisation. This volume aims to illuminate this uneven development and takes stock of the current issues that hinder and support industrialisation in low and middle income economies. This Handbook is a collection of chapters on different aspects of industrialisation experience in a range of countries. Key themes include, the role of manufacturing in growth, the nature of structural change at different stages of development, the role of manufacturing in employment creation, alternative options for trade and industrial policy, the key role of technology and technical change, and the impact of globalisation and the spread of global value chains and foreign direct investment on prospects for industrialisation. Several chapters discuss individual country experiences with examples from India, Mexico, South Africa and Tanzania, as well as an overview of African industrialisation. This authoritative Handbook will be a key reference source for those studying or wishing to understand contemporary economic development. Offering inspiration and direction for future research, this landmark volume will be of crucial importance to all development economics scholars and researchers.

The development of COVID-19 vaccines was a landmark in the current efforts to contain the global pandemic caused by the novel SARS-CoV-2. Consequently, vaccine rollout and inoculation campaigns continue to progress steadily across the globe. However, “skewed” rollout, or the inequitable or delayed access to the vaccines encountered particularly by low-income countries in Africa, remains a source of great concern. This may negatively affect the continent and could lead to increased transmission, travel restrictions, further economic disruptions, and increased morbidity and mortality. Ultimately, these negative consequences could directly or indirectly hamper global efforts to defeat the pandemic. Access to COVID-19 vaccines is a global priority and provides a source of hope to bring the pandemic under control. High-income nations, national governments, donor agencies, and other relevant stakeholders must support the World Health Organization's COVAX initiative to ensure fair, rapid and equitable distribution of the vaccines to countries, irrespective of income level. This effort will rapidly bring the pandemic under control and impact the recovery of the global economy. Low-income nations in Africa must significantly invest in research, health care, vaccines, and drug development and must remain proactive in preparing against future pandemics. This review examines the rollout of the COVID-19 vaccines with a focus on Africa.

The study investigated the impact of industrial policies on manufacturing sector output growth rate in selected West African Countries. Data spanning 2000 to 2023 were collected on the manufacturing sector output growth rate (MOG), exchange rate (EXCHR), domestic credit to the private sector (DCPS), trade openness (TOP), and foreign direct investment (FDI). The fully modified ordinary least squares (MOLS) estimation technique was used in the model estimation. The findings revealed that the exchange rate had a positive and significant impact on the manufacturing sector's output growth rate. The finding implies that an effective exchange rate policy would have a positive and significant effect on manufacturing sector output growth in the selected West African Countries. Domestic credit to the private sector had a negative and significant effect on the manufacturing sector's output growth rate in the selected African countries. implying that effective credit to private sector has the potential of enhancing the manufacturing sector's output growth rate. Trade policy (TOP) had a negative and insignificant effect on manufacturing sector's output growth rate. The study revealed that industrial policy (exchange rate policy, credit policy, and trade policy) impacted manufacturing sector output growth differently in selected West African countries. Based on the findings, the study recommended that the governments of the selected West African countries should strengthen industrial sector’s policies to promote the manufacturing sector's output growth rate.

The Africa Digest is a fortnightly e-newsletter scanning the key trends in the macro-environment and industry to promote knowledge and raise understanding of business in Africa. This issue explores 1. Trends in agriculture - Agriculture in Africa is a dominant sector, involving more than 60% of its population. Yet it contributes less than 30% to Africa’s GDP. Low productivity and archaic production methods continue to characterise agriculture in Africa. The average age of a smallholder farmer is 60 years, and youth are leaving the sector for the cities. Africa imports food, to the tune of between US$35 and US$41 billion annually. Governments, realising the precarious position in which agriculture finds itself, have organised initiatives to address the situation. This compilation addresses recent trends and events in this important sector. 2. Infrastructure Trends - Africa’s infrastructure situation remains a major source of concern, despite being identified as a challenge for a considerable period. Infrastructure requirements increase annually, accompanied by growing needs for financing. Factors such as growing populations, increasing disposable income, and urbanisation, impact the African infrastructure situation. Housing, transport (road, rail, ports), energy and water all experience shortfalls. While the continent does face infrastructure challenges, these same challenges paradoxically provide investment opportunities for those willing to accept the risks of investing in Africa. 3. Manufacturing in Africa - Commentators worry that many African countries are pre-maturely de-industrialising, pointing to the decreasing contribution to GDP from their manufacturing sectors. This situation has a negative effect on investment, job creation and technology development. Several African countries have launched various initiatives to boost their manufacturing sectors. 4. Mining Trends and Events - Africa’s mining sector is undergoing transformation, with significant activities in regions that are new to serious mining activity. When new players attract large investments from abroad, some companies and regions that once led the industry will inevitably lose out. A number of investment opportunities up and down the industry value chain present attractive returns. 5. Regional Integration and Politics - Regional integration presents potential solutions to many of Africa’s economic and political problems. Its implementation will significantly improve the level of intra-regional trade, and facilitate the free flow of capital, goods, services and people. However, despite the benefits promised by regional integration, it seems many African countries are unable to rise above squabbles with neighbours to embrace regionalism.

The World Health Organization (WHO) declared the ongoing Mpox (formerly known as Monkeypox) outbreak a Public Health Emergency of International Concern (PHEIC) on 14th August 2024, this being the second time, with Mpox previously being declared a PHEIC during the 2022-2023 outbreak. Mpox is a zoonotic orthopoxvirus with a similar clinical presentation to smallpox but a notably lower mortality rate. Before the 2022 outbreak, Mpox was a rare and neglected disease, which has now drawn global attention once the cases started emerging in countries outside Africa. The WHO has stressed the importance of a coordinated response on the international front to control and contain the Mpox outbreaks in the DRC and neighboring countries in Africa. Through this narrative review, the authors aim to consolidate evidence on the Mpox virus, characteristics of its infection, treatment and prevention strategies, a review of past and current Mpox outbreaks, challenges in containing the spread of the epidemic including access to vaccines in low-income nations and vulnerable populations, and any relevant learnings from the COVID-19 pandemic that could be implemented.

China's emergence as a global power is raising interest globally. This includes a rise in trade relations with Africa over the last two decades. China's relations with Africa have undergone several changes since the onset of modern China-Africa relations in 1955. In the current phase, relations have been marked by increasing economic interdependence. During the same period, China has signed Free Trade Agreements (FTAs) with many countries in different continents and African countries have also embarked on their own FTAs. However, no FTAs have yet been signed between China and any country in Africa. This thesis examines the question: What are the Prospects of China Signing FTAs in Africa? This thesis documents the growth of China-Africa trade over the last two decades, analyses the reasons why China signs FTAs, and assesses whether three African countries, Nigeria, South Africa and Sudan meet the criteria for China's FTA partners. The thesis finds that there is a slim chance that China will sign FTAs with any of these three African countries in the near term, because African countries are at the fringe of China's foreign policy. African issues are rarely discussed at the highest decision-making authority in China, and China's FTAs with African countries may have impacts on the latter's manufacturing sectors. Over the medium-longer term, South Africa is probably the most likely candidate of the three countries for a FTA with China.

Besides waste of human resources, high and growing youth unemployment also threatens social stability in African countries. Reducing youth unemployment therefore solves economic as well as a growing social problem. This article uses a newly constructed data set and three dynamic panel data estimators to investigate the relationship between service exports and youth unemployment in African countries over the 1990–2014 period. Measuring service exports as the growth rate of aggregate service exports and controlling for other covariates, we find that service exports are negatively and significantly correlated with both aggregate and female youth unemployment in African countries in the short term and long run. Panel Granger causality test indicates that service exports Granger cause youth unemployment but not the other way around. Our results are robust to several specification tests as well as estimation methods. Our results are similar to the results of research that finds service exports particularly and exports generally increase employment. While not claiming a causal relationship, the strong negative correlation between service exports and youth unemployment suggests that one mechanism to reduce youth unemployment in African countries is to pursue policies to increase service exports. Service exports could be an alternative to the jobless growth African countries have experienced in the last two decades.

PurposeThe purpose of this paper is to explore attitudes towards euthanasia among Ugandan adults.Design/methodology/approachThis is an important study because data were recently collected in 2010. The sample consists of 80 participants above age 18 who responded to an interview schedule exploring attitudes towards euthanasia. A qualitative approach was utilized to analyze the findings.FindingsUnique to this study is the fact that almost all participants (96 percent) perceived euthanasia as murder. Religious beliefs, hope for recovery, potential for new medical technologies, health care costs, quality of life, and the right to die are some of the themes that influenced attitudes towards euthanasia. Religious and cultural beliefs appear to be the major influential factors for euthanasia attitudes in this study.Originality/valueGenerated information may assist in formulating end of life policies as well as addressing related ethical issues in low income nations. Currently, information on attitudes towards euthanasia in sub‐Sahara African countries is scarce in the literature. The paper's findings may increase knowledge in this area.