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Structural Transformation and Productivity Growth in Egypt - Disentangling Heterogeneous Services and Identifying Drivers of Growth: A Structural Change Approach

Jansen, Agnes LU (2022) EKHS21 20221
Department of Economic History
Abstract
Premature deindustrialization and a shift to services at early stages of economic development raise concerns about growth prospects of low-income and emerging economies. Within the manufacturing- vs. service-led growth debate, this thesis analyzes the contribution of hetero-geneous services vis-à-vis manu¬facturing to productivity growth, focusing on the role of modern services which are charac¬terized by increased tradability and economies of scale potential arising from the global emergence of ICTs. By testing the validity of Kaldor’s Growth Laws and conducting a shift-share decomposition analysis for Egypt, within- and cross-sectoral labor productivity dynamics over the period of structural reforms (1990-2018) are identified. Overall,... (More)
Premature deindustrialization and a shift to services at early stages of economic development raise concerns about growth prospects of low-income and emerging economies. Within the manufacturing- vs. service-led growth debate, this thesis analyzes the contribution of hetero-geneous services vis-à-vis manu¬facturing to productivity growth, focusing on the role of modern services which are charac¬terized by increased tradability and economies of scale potential arising from the global emergence of ICTs. By testing the validity of Kaldor’s Growth Laws and conducting a shift-share decomposition analysis for Egypt, within- and cross-sectoral labor productivity dynamics over the period of structural reforms (1990-2018) are identified. Overall, the results point to growth-inhibiting structural trans¬formation processes due to a concentration of economic output and employment in low-tech and informal services and non-manufacturing industrial activities. For the last decade, growth-enhancing roles of manufacturing and (manufacturing-related) business services are found. The findings highlight the importance of promoting the formal private sector to create jobs and the need for industrial policies that strengthen linkages with modern services. By emphasizing the similarity of structural trans¬formation processes and challenges to sustained productivity growth to other developing regions, this thesis argues to include the MENA region in comparative research on structural change. (Less)
Please use this url to cite or link to this publication:
author
Jansen, Agnes LU
supervisor
organization
course
EKHS21 20221
year
type
H1 - Master's Degree (One Year)
subject
language
English
id
9089793
date added to LUP
2022-08-11 10:18:50
date last changed
2022-08-11 10:18:50
@misc{9089793,
  abstract     = {{Premature deindustrialization and a shift to services at early stages of economic development raise concerns about growth prospects of low-income and emerging economies. Within the manufacturing- vs. service-led growth debate, this thesis analyzes the contribution of hetero-geneous services vis-à-vis manu¬facturing to productivity growth, focusing on the role of modern services which are charac¬terized by increased tradability and economies of scale potential arising from the global emergence of ICTs. By testing the validity of Kaldor’s Growth Laws and conducting a shift-share decomposition analysis for Egypt, within- and cross-sectoral labor productivity dynamics over the period of structural reforms (1990-2018) are identified. Overall, the results point to growth-inhibiting structural trans¬formation processes due to a concentration of economic output and employment in low-tech and informal services and non-manufacturing industrial activities. For the last decade, growth-enhancing roles of manufacturing and (manufacturing-related) business services are found. The findings highlight the importance of promoting the formal private sector to create jobs and the need for industrial policies that strengthen linkages with modern services. By emphasizing the similarity of structural trans¬formation processes and challenges to sustained productivity growth to other developing regions, this thesis argues to include the MENA region in comparative research on structural change.}},
  author       = {{Jansen, Agnes}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Structural Transformation and Productivity Growth in Egypt - Disentangling Heterogeneous Services and Identifying Drivers of Growth: A Structural Change Approach}},
  year         = {{2022}},
}