Structural transformation in the presence of trade and financial integration in sub–Saharan Africa

Özet

This study examines the impact of trade and financial integration on structural transformation relying ondata from 28 countries in sub-Saharan Africa (SSA) over the period 1985e2015. Results from our systemgeneralized method of moments (GMM) show that, trade and financial integration significantly spurmanufacturing and agricultural sector value additions. However, for the industrial sector, only financialintegration robustly influences industrial growth with no effect on the service sector. Further evidencealso suggests that trade and financial integration are complementary to each other and do not operateindependently to influence structural transformation in SSA.