Employment Growth, Service Sector, and Manufacturing Value-Added in Sub-Saharan Africa
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Date
2020
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Journal ISSN
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Publisher
Ife Journal of Economics and Finance
Abstract
This study examined the interaction among employment growth, service sector, and manufacturing value-added in sub-Sahara Africa. The study utilized secondary data spanning 1990 to 2019. The data was analyzed using a panel vector error correction model (PVECM). The result reveals that long-run causality runs from manufacturing value-added and service sector to employment growth. The result shows that the manufacturing sector and service sector generate employment in the economy. It further reveals that there is no long-run causality running from employment growth and service sector to manufacturing value-added in SSA. Finally, the analysis reveals that there is long-run causality running from manufacturing value-added and employment growth to the service sector. The direction of causality reveals in this study shows that the service sector is crowding out the manufacturing sector in SSA.
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Keywords
Service sector, Manufacturing value-added, Employment growth, Deindustrialization, Causality