PhD Defence: Kaba Kabinet

Determinants of Industrialization in Sub-Saharan African Countries                                                          

Kaba Kabinet
Université Clermont Auvergne, CERDI
Banque mondiale

Jury

Mary-Francoise Renard, Professor, Université Clermont Auvergne
Gilles Dufrenot, Professor, Aix-Marseille Université, Ecole d'Economie de Marseille (AMSE)
Gianluca Orefice, Professor, Université Paris-Dauphine - PSL.
Jean-Louis Combes, Professor, Université Clermont Auvergne, Laboratoire d’Economie d’Orléans (LEO)
Justin Yifu Lin, Professor, Peking University
Robert Zymek, Economist, International Monetary Fund

Abstract

This thesis examines the determinants of industrialization in sub-Saharan African countries. Except for Chapter 1, which is the general introduction, the dissertation is organized into two parts: internal and external determinants. The first part includes two Chapters (Chapter 1 and Chapter 2) and the second part covers three Chapters (Chapter 3, Chapter 4 and Chapter 5).

Chapter 2 analyzes the empirical effects of production losses arising from power outages on employment in manufacturing firms operating in sub-Saharan Africa. The evidence indicates that workers in the production unit are negatively affected by the output losses experienced by firms during a power outage. Furthermore, unskilled and temporary workers are more vulnerable to production losses due to power outages than skilled workers. In addition, the transaction costs associated with the use of generators, beyond a certain threshold, lead firms to lay off employees.

Chapter 3 examines the impacts of power outages and exchange rate undervaluation on the movement of manufacturing firms between the domestic and export markets. As electricity shortages become more severe, firms move more towards the domestic market at the expense of the export market, while undervaluation leads to the opposite movement. Also, the econometric estimates reveal that the above-mentioned effects are influenced by some characteristics related to manufacturing firms and countries.

Chapter 4 explores the relationship between remittances and firm capital accumulation, sales, and employment. Findings show that remittances contribute to employment and capital acquisition in manufacturing firms by nationals. However, remittances reduce manufacturing firms’ sales through competitive pressures from foreign manufactured goods. Heterogeneity tests reveal that the above results are affected by some firm and country specificities.

Chapter 5 provides an empirical study and theoretical discussion of the effects of industrial and trade policies on structural transformation in sub-Saharan Africa. The theoretical discussion concludes that industrial and trade policies have failed to industrialize sub-Saharan Africa, while they have been a key determinant in the industrialization process of East Asian countries. The empirical analysis reveals a negative impact of trade openness on structural transformation between the agricultural and manufacturing sectors. Moreover, this negative effect is exclusively driven by natural resource exports.

Chapter 6 focuses on the influence of South-South trade on industrialization in Africa. Comparisons through descriptive statistics and econometric models show a negative correlation between Africa’s total exports to China and industrialization in the sub-Saharan region. However, this correlation is positive for other developing countries with respect to their total exports to China.                                                                                                                                                                                

Mots-clés

Industrialization; Sub-Saharan Africa; International Trade; Infrastructure; International Capital Flows; Employment.                      

theses.fr/s363274