Structural Transformation in Sub-Saharan Africa

Abstract

Economic development is typically accompanied by the movement of labor from agriculture to the non-agricultural sector, a pattern commonly referred to as structural transformation. This note aims to better understand current trends in the ongoing structural transformation in SubSaharan Africa (SSA). There are three main findings: (i) The structural transformation is occurring more slowly, and is much less variable across countries, than prevailing estimates suggest. (ii) There is a weak relationship between initial agricultural employment shares and the pace of transformation, suggesting little convergence across regions. (iii) Movement out of agricultural employment is clearly, but only modestly, correlated with poverty reduction.