ABSTRACT
This chapter discusses the concept of structural transformation and what it means for Africa. The extant literature on structural transformation can be traced to the 1950s and 1960s and is largely based on the experience of Western countries. Structural transformation is further perceived as more of a process whereby the relative importance of different sectors and activities of an economy change over time. Structural transformation requires a reallocation of labour between different parts of the economy as large productivity gaps exist between sectors as reflected in the dual economy model. Several empirical studies have been undertaken to show the productivity effects of structural change in Africa. Structural transformation has occurred across regions such as in Europe and North America and historical periods of the eighteenth and nineteenth centuries. The quality of economic growth in Africa has been persistently questioned. J. D. Sachs and A. M. Warner sought to provide econometric evidence on the sources of slow growth in Sub-Saharan Africa.
