Abstract

This study contributes to a deeper understanding and perspective on the current debate on structural transformation in Sub-Saharan Africa (SSA) by investigating the effect of technical vocational education and training on industrial performance between 1980 - 2018. The panel data used for this study were obtained from World Development Indicators (WDI), International Labour Organization (ILO), United Nations Educational, Social and Cultural Organization (UNESCO) and Fraser Institute databases. The empirical results derived from the Instrumental Variable (IV) Two-Stage Least Squares (2-SLS) econometric approach highlighted the important role of Technical Vocational Education and Training (TVET) as key determinants of industrial performance in SSA. The study found strong and robust relationship between TVET and measures of industrialisation. General secondary education, on the other hand, had a negative effect on industrialisation in SSA. The paper recommends therefore that there is the need for a complete overhaul and revision of the educational system in SSA with more emphasis on TVET in order to meet the required labour demand for industrial needs in the foreseable future.

Highlights

  • Structural transformation is viewed as an indispensable pathway to sustainable and inclusive economic growth

  • The central dynamic force behind the industrial revolution has been attributed to innovation (Kuznets, 1957), and each industrial revolution has its own distinctive innovation that raises the skills of the workforce

  • The positive effect for the first two measures of industrialisation is consistent with the result obtained by Ongo Nkoa (2016) who argues that Sub-Saharan Africa (SSA) has turned to a structural transformation of its economy

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Summary

Introduction

Structural transformation is viewed as an indispensable pathway to sustainable and inclusive economic growth. The classical meaning of structural transformation, as defined by (Lewis, 1954) and (Kuznets, 1957) refers to the shift of population and economic activity from agriculture to industry, and later to services (Kanbur, 2017). For (Chandra, 2003), industrialisation can be defined as the increase in the value added of the manufacturing sector as a percentage of GDP. In this regard, the achievement of industrialisation implies a faster growth registered in the manufacturing sector relative to other sectors. The central dynamic force behind the industrial revolution has been attributed to innovation (Kuznets, 1957), and each industrial revolution has its own distinctive innovation that raises the skills of the workforce

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