Click here for search results
Sector growth and the dual economy model - evidence from Cote d'Ivoire, Ghana, and Zimbabwe, Volume 1
Author:Blunch, Niels-Hugo; Verner, Dorte; Country:Ghana; Zimbabwe; Cote d'Ivoire;
Date Stored:2001/04/25Document Date:1999/09/30
Document Type:Policy Research Working PaperSubTopics:Governance Indicators; Achieving Shared Growth; Water and Industry; Economic Theory & Research; Health Monitoring & Evaluation; Public Health Promotion; Agricultural Knowledge and Information Systems
Language:EnglishMajor Sector:(Historic)Economic Policy
Region:AfricaReport Number:WPS2175
Sub Sectors:Macro/Non-TradeCollection Title:Policy, Research working paper ; no. WPS 2175
Volume No:1  

Summary: The authors analyze and compare sectoral growth in three African economies - Cote d'Ivoire, Ghana and Zimbabwe - since 1965. They extend the classic dual economy - the agriculture and industry sectors - by adding the services sector. For all the three countries, they find at least one statistically significant long-run relationship for sectoral GDP. This indicates a large degree of interdependence in long-run growth among the three sectors. This also provides evidence against the basic dual economy model, which implies that a long-run relationship cannot exist between agricultural and industrial output. Analysis of the impulse response and analysis of short-run sectoral growth support the results on the interdependence of sectoral growth. Both imply that a positive link exists between growth in industry and growth in agriculture. Their findings contradict the literature on the dual economy - and suggest that more attention should be paid to inter-sectoral dynamics and dependencies in Sub-Saharan Africa. Why? Because an adverse shock in, say, agriculture after a drought is likely to have an adverse impact on the other economic sectors. Policymakers should try to accommodate not only the initial shock in agriculture but also its adverse effects in other sector. They find that focusing mainly on industry was not optimal policy in Cote d'Ivoire, Ghana, and Zimbabwe. For maximum economy-wide growth, it would have been better to balance policies to include all three sectors: agriculture, industry, and services.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 32 pagesOfficial version*2.24 (approx.)
TextText version**
How To Order
Light-Weight Documents
Lighter (less MB) documents which may or may not be the final, official version
File TypeDescriptionFile Size (mb)
PDF 29 pagesWPS21750.10

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.

Permanent URL for this page: