Abstract
The objective of this paper is to identify the categories of services likely to foster structural transformation and economic growth in ECOWAS. This paper seeks to move beyond theoretical exercise by offering policy solutions which could streamline services trade in ECOWAS, thereby allowing it to take advantage of expansion in this sector. For this, we rely on data from ECOWAS countries between 1995 and 2015 from the UNCTAD database and WDI (2016) database. Results from a dynamic panel model show that for each ECOWAS countries there is at least one category of services that promotes structural transformation and/or economic growth. Services trade (imports and/or exports) could be a powerful tool for economic growth, structural transformation and integration if the various countries rely on the appropriate service for this purpose.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsNotes
- 1.
Gadrey J. (2003) Socio-économie des Services. La Découverte. Collection Repères; Gallouj C. et Djellal F. (2007), Introduction à L’économie des Services. Presses Universitaires de Grenoble. Collection « Economie en + ». France.
- 2.
Employment shares are calculated using either workers number or hours worked by sector.
- 3.
Typically expressed in current prices (“nominal shares”), they may also be expressed in constant prices (“real shares”).
References
Alcalá, F., & Ciccone, A. (2004). Trade and productivity. The Quarterly Journal of Economics, 119(2), 613–646.
Arnold, J. M., Mattoo, A., & Gaia, N. (2008). Services inputs and firm productivity in Sub-Saharan Africa: Evidence from firm-level data. Journal of African Economies, 17(4), 578–599.
Cadot, O., & De Melo, J. (2016). Introduction. Vers une transformation structurelle en Afrique. Revue d’économie du développement, 2(4), 5–17.
Cuyvers, L. (1997). Export opportunities of Thailand: A decision support model approach. Centre for International management and development and centre for ASEAN studies. CAS Discussion Paper, 9, 3–21.
Cuyvers, L. (2004). Identifying export opportunities: The case of Thailand. International Marketing Review, 21(3), 255–278.
Cuyvers, L., De Pelsmacker, P., Rayp, G., & Roozen, I. T. (1995). A decision support model for the planning and assessment of export promotion activities by government export promotion institutions—The Belgian case. International Journal of Research in Marketing, 12(2), 173–186.
Cuyvers, L., & Viviers, W. (Eds.). (2012). Export promotion: A decision support model approach (276 p). Stellenbosch: Sun Press.
Dabla-Norris, E., Thomas, A., Garcia-Verdu, R., & Chen, Y. (2013, July). Benchmarking structural transformation across the world. IMF Working Paper WP/13/176.
Duarte, M., & Restuccia, D. (2010). The role of the structural transformation in aggregate productivity. Quarterly Journal of Economics, 125(1), 129–173.
Fink, C., Mattoo, A., & Neagu, I. C. (2002). Trade in international maritime services: How much does policy matter? The World Bank Economic Review, 16(1), 81–108.
Francois, J. F., & Reinert, K. A. (1996). The role of services in the structure of production and trade: Stylized facts from a cross-country analysis. Asia-Pacific Economic Review, 2(1), 35–43.
Gadrey, J. (2003). Socio-Economie des Services (3e ed.p. 128). Paris: La Découverte « Repères ». isbn:9782707139511.
Gallouj, C., & Djellal, F. (2007). Introduction à L’économie des Services. Presses Universitaires de Grenoble. Collection « Economie en + », France.
Gelb, A., Meyer, C., & Ramachandran, V. (2016). Pays pauvres, pays bon marché? Regard comparatif sur le coût de la main-d’œuvre dans le secteur industriel en Afrique. Revue d'économie du développement, 24(2), 51–92.
Ghani, E., & O’Connell, S. D. (2016). Les services peuvent-ils devenir un escalator de croissance pour les pays à faible revenu. Revue d'économie du développement, 24(2), 143–173.
Han, L., Li, D., Moshirian, F., & Tian, Y. (2010). Insurance development and economic growth. The Geneva Papers, 35, 183–199.
Herrendorf, B., Rogerson, R., & Valentinyi, A. (2013). Two perspectives on preferences and structural transformation. American Economic Review, 103(7), 2752–2789.
Herrendorf, B., Rogerson, R., & Valentinyi, A. (2014). Growth and structural transformation. In P. Aghion & S. Durlauf (Eds.), Handbook of economic growth (Vol. 2B). Amsterdam: North-Holland.
Hoekman, B., & Mattoo, A. (2011). Services trade liberalization and regulatory reform: Reinvigorating international cooperation. Policy Research Working Paper, WPS5517.
Inklaar, R., Timmer, M. P. & Van Ark, B. (2006, August). Mind the gap: International comparisons of productivity in services and goods production. University of Groningen GGDC Research Memorandum GD-89.
Inklaar, R., Timmer, M. P., & van Ark, B. (2008). Services trade liberalization and regulatory reform: Re-invigorating international cooperation. International Productivity Monitor, 16(Spring), 71–81.
Kose, M. A., Prasad, E. S., & Terrones, M. E. (2006). How do trade and financial integration affect the relationship between growth and volatility? Journal of International Economics, 69(1), 176–202.
Kuznets, S. (1966). Modern economic growth. New Haven: Yale University Press.
Nyunt, K. M. (2009, August). An empirical study of the effects of services infrastructure on trade efficiency and growth in Myanmar. Chulalongkorn Journal of Economics, 21(2), 89–109.
Rigobon, R., & Rodrik, D. (2005). Rule of law, democracy, openness, and income: Estimating the interrelationships. The Economics of Transition, 13(3), 533–564.
Rodriguez, F., & Rodrik, D. (2001). Trade policy and economic growth: A skeptic’s guide to cross-national evidence. In B. S. Bernanke & K. Rogoff (Eds.), NBER macroeconomics annual 2000 (pp. 261–325). Cambridge, MA: MIT Press.
The African Center for Economic Transformation. (2014). Growth with depth. African Transformation Report.
Triplett, J. E., & Bosworth, B. P. (2004). Productivity in the U.S. services sector. Washington, DC: Brookings Institution.
UNCTAD. (2015). Economic development in Africa: Unlocking the potential of Africa’s services trade for growth and development. Report, United Nation.
UNWTO. (2015). UNWTO annual report 2014 (88 p). Madrid: World Tourism Organization.
Viviers, W., & Pearson, J. J. A. (2007). The construction of a decision support model for evaluating and identifying realistic export opportunities for South Africa. Report prepared for the statistical analysis and modelling unit at the DTI. DTI, Pretoria.
Viviers, W., Rossow, R., & Steenkamp, E. A. (2009, February). The sustainability of the DSM for identifying realistic export opportunities for South Africa: 2007–2008. Unpublished report prepared for the department of trade and industry, South Africa.
Viviers, W., Steenkamp, E. A., & Rossouw, R. (2010). Identifying realistic export opportunities for South Africa: Application of a decision support model (DSM) using HS 6-digit level product data. Final report: September 2010. Report prepared for the statistical analysis and modelling unit at the DTI. DTI, Pretoria.
WDI. (2016). World development indicators 2016. Washington, DC: The World Bank Group.
Wilson, J., Mann, C., & Otsuki, T. (2003, March). Trade facilitation and economic development: Measuring the impact. Policy research working papers.
Ypma, G. (2007). Productivity levels in transport, storage and communication: A new ICOP 1997 dataset. Groningen Growth and Development Center, Research Memorandum GD-85.
Zoltan, R. (1969, September). A note on measuring structural changes. The Review of Income and Wealth, 15(3), 265–268.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Okah Efogo, F. (2019). Trade in Services for Growth and Structural Transformation in West Africa. In: Seck, D. (eds) The External Sector of Africa's Economy. Advances in African Economic, Social and Political Development. Springer, Cham. https://doi.org/10.1007/978-3-319-97913-7_7
Download citation
DOI: https://doi.org/10.1007/978-3-319-97913-7_7
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-97912-0
Online ISBN: 978-3-319-97913-7
eBook Packages: Economics and FinanceEconomics and Finance (R0)