Cover IMF Working Papers
Buy Book in Print
Increasing Productivity Growth in Middle Income Countries
Author:
Aidar Abdychev
Search for other papers by Aidar Abdychev in
Current site
Google Scholar Close
,
La-Bhus Fah Jirasavetakul
Search for other papers by La-Bhus Fah Jirasavetakul in
Current site
Google Scholar Close
,
Mr. Andrew W Jonelis
Search for other papers by Mr. Andrew W Jonelis in
Current site
Google Scholar Close
,
Mr. Lamin Y Leigh
Search for other papers by Mr. Lamin Y Leigh in
Current site
Google Scholar Close
,
Ashwin Moheeput
Search for other papers by Ashwin Moheeput in
Current site
Google Scholar Close
,
Friska Parulian
Search for other papers by Friska Parulian in
Current site
Google Scholar Close
,
Ara Stepanyan
Search for other papers by Ara Stepanyan in
Current site
Google Scholar Close
, and
Albert Touna Mama
Search for other papers by Albert Touna Mama in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2015: Issue 002
Language:
English
Publication Date:
13 Jan 2015
DOI:
https://doi.org/10.5089/9781484328439.001
ISBN:
9781484328439
ISSN:
1018-5941
Pages:
29
Keywords:
WP; TFP growth; GDP; TFP; labor market; Growth; Productivity; potential growth…; regulation indices; TFP determinant; TFP datum; FDI inflow; SMICs in SSA; long-run TFP growth; credit market; TFP contribution; Total factor productivity; Labor markets; Gender diversity; Africa; Sub-Saharan Africa; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (1.4 MB) Download Epub
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.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund