De-industrialisation in Sub-Saharan Africa: Myth or crisis?

This article examines the de-industrialisation hypothesis in the context of recent developments in Sub-Saharan Africa (SSA). Alternative versions of de-industrialisation are considered and a methodology for testing for such effects is put forward. This involves a cross-country analysis using a panel data approach with regional and time period, as well as country dummies. At the regional level no specific Africa effect can be identified. To allow for diversity of experience within SSA, country residuals from the benchmark equation are also considered and here there is some evidence of de-industrialisation in seven out of the 16 African economies for which data were available.