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ABSTRACT
Developing countries, especially in sub-Saharan Africa, have found it very difficult to expand manufacturing and have experienced premature deindustrialisation. It is argued in this article that this is the result of a policy shift that has reduced both the indirect taxation of agriculture and the indirect subsidising of manufacturing. The negative impact of this policy shift on manufacturing can be offset by the rapid growth of agricultural productivity. These ideas are used to interpret the recent experience of Mozambique.
RÉSUMÉ
Les pays en développement, en particulier en Afrique subsaharienne, ont eu beaucoup de mal à développer leur secteur manufacturier et ont connu une désindustrialisation prématurée. Cet article soutient qu’il s’agit du résultat d’un changement de politique qui a réduit à la fois la taxation indirecte de l’agriculture et la subvention indirecte du secteur manufacturier. L’impact négatif de ce changement de politique sur le secteur manufacturier peut être compensé par la croissance rapide de la productivité agricole. Ces idées sont utilisées pour interpréter l’expérience récente du Mozambique.
Notes
1. Traditional sector services include retail trade, restaurants and public administration, for example.
3. Sub-Saharan Africa includes: Botswana, Ethiopia, Ghana, Kenya, Malawi, Mauritius, Nigeria, Senegal, South Africa, Tanzania and Zambia.
4. See Fforde Citation2018 for a detailed discussion of “servicisation”.
Additional information
Notes on contributors
Richard Grabowski
Richard Grabowski is Professor Emeritus of Economics at Southern Illinois University Carbondale. His research focuses on agriculture and the development process and has been published in World Development, Journal of Development Studies, Journal of Asian Economics, Canadian Journal of Development Studies and other economic development journals.