Dirk Willem te Velde, October 2017
Using data available to download from the Supporting Economic Transformation (SET) data portal, this briefing shows that labour and total factor productivity differentials exist at all levels in the economy, both between sectors and with sectors. This suggest there are significant opportunities for promoting economic transformation.
This data briefing first discusses productivity differentials between sectors and then productivity differentials between firms within sectors.
Key messages
- Data available on the SET data portal show that productivity differentials exist both between, and within sectors in low-income countries, which points to significant opportunities for promoting economic transformation.
- Data show the recent pattern of economic growth in Africa has involved little structural change across sectors.
- Labour productivity differentials between sectors decrease as levels of income increase, suggesting further opportunities for economic transformation in LICs
- Firm-level productivity data suggest large productivity differentials between firms within sectors.
Photo credit: Addis Ababa Market, SET Programme, Overseas Development Institute ©