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Increasing Productivity Growth in Middle Income Countries, Aidar Abdychev, La-Bhus Fah Jirasavetakul, Andrew Jonelis, Lamin Leigh, Ashwin Moheeput, Friska Parulian, Ara Stepanyan, Albert Touna Mama

Many small middle-income countries (SMICs) in sub-Saharan Africa (SSA) have experienced a moderation in growth in recent years. Although factor accumulation, most notably capital deepening, was crucial to the success of many SMICs historically, this growth model appears to have run its course. The analysis in this paper suggests that the decline in the contribution of total factor productivity (TFP) to growth is largely responsible for the slowdown in trend growth in many SMICs, which highlights the need for policy actions to reinvigorate productivity growth. This paper explores the question of what kind of structural policies could boost productivity growth in SMICs and the political economy factors that may be contributing to the slow implementation of these critical reforms in these countries. The findings suggest that although macroeconomic stability and trade openness are necessary for productivity growth, they are not sufficient. SMICs need to improve the quality of their public spending, most notably in education to minimize the skill mismatch in the labor market, reduce the regulatory burden on firms, improve access to finance by small and medium-sized enterprises and create the enabling environment to facilitate structural transformation in these economies
Table Of Contents
Cover; Contents; A. Introduction; B. Literature Review: Determinants of Total Factor Productivity; C. Stylized Facts; Figures; 1. SMICs of SSA: Growth Development; 2. SSA MICs Growth Decomposition; 3. Factors Affecting Productivity in Selected MICs; Tables; 1. Structural Impediments to Productivity Enhancement in Selected MICs; D. Empirical Analysis; 2. Summary of the empirical results; 3. Dynamic Panel Result (System GMM); 4. Panel Group Mean FMOLS Results; 5. Panel Probit Analysis, TFP; E. Conclusions; 6. Predictive Probabilities; References; Appendixes
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (30 p.)
Specific Material Designation
Form Of Item

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