Role of Industrialization on Economic Growth: The Experience of Senegal (1960-2017)
- 1 School of Economics, Regional Economics as Research Field, Shanghai, China
- 2 SHU-UTS SILC Business School, Shanghai, China
Abstract
The aim of this study is to contribute to the investigation of the impact of industrialization on economic growth by analyzing the Senegalese manufacturing firms. The paper utilized the secondary data drawn from the World Bank (WDI 2015) and the National Agency of Statistic and Demography in Senegal (ANSD) and covered the period between 1960 and 2017. It will employ the Ordinary Least Square (OLS) techniques in estimating the relationship between industrial output, inflation rate, FDI, Foreign Exchange Rate and economic growth, after which ADF unit root test was conducted using Breusch-Godfrey serial correlation LM test and Breusch-Pagan-Godfrey heteroskedasticity test. The econometric analysis has shown that the increase of industrial output will increase economic growth in Senegal. Therefore, there is significant relationship between industrial development and Senegalese economy growth . However, the result revealed that industrialization will go a long way in stimulating economic growth. Based on these results, we have recommended some policy measures in order to boost industrial output by improving the overall productivity of all the sectors and ensure sustainable development.
- Pacheco-López, P. and Thirlwall, A.P.(2013) A New Interpretation of Kaldor’s First Growth Law for Open Developing Economies. University of Kent, School of Economics Discussion Papers, KDPE 1312.
- Szirmai, A. (2012) Industrialisation as an Engine of Growth in Developing Countries 1950-2005. Structural Change and Economic Dynamics, 23, 406-420. https://doi.org/10.1016/j.strueco.2011.01.005
- Kaldor, N. (1967) Strategic Factors in Economic Development. Cornell University Press, Ithaca, NY.
- (2012) World Bank World Development Indicators Online. http://databank.worldbank.org/ddp/home.do?Step=12&id=4&CNO=2
- Abiola, M.E. (2012) Savings, Investment, Productivity and Economic Growth in Nigeria. Journal of Research in National Development, No. 2, 356-374.
- Republique du Senegal (2005) Lettre de politique sectorielle dedéveloppement de l’industrie: La politique deredéploiement industriel.
- ANSD Senegal (2016) Rapport final de l’enquêtesurl’état des lieux de l’industrie au Sénégal.
- Doing Business Report, World Bank (2014).
- World Bank (2014) Senegal Country Profile, 2014 Enterprise Surveys.
- Bolaky, B. (2011) The Role of Industrialisation in Economic Development: Theory and Evidence. UNCTAD, 52.
- Clunies-Ross, A., Foresyth, O. and Huq, M. (2010) Development Economics. McGraw Hill, London.
- O’Sullivan, A. and Sheffrin, S. (2007) Economics: Principles in Action. Prentice Hall, New Jersey.
- Jhingan, M. (2005) Economics of Development and Planning. Vrinda Publications, Delhi.
- Abbott, L. (2003) Theories of Industrialization and Enterprise Development. Good Book, London.
- Balami, D.H. (2006) Macroeconomic Theory and Practice. Salawe Prints, Off Leventies, Wulari, Maiduguri.
- Hausman, J.A. and Taylor, W.E. (1981) Panel Data and Unobservable Individual Effects. Econometrica, 49, 1377-1398. https://doi.org/10.2307/1911406
- Szirmai, A. (2012) Development Statistics, Figure 4.1. http://www.dynamicsofdevelopment.com
- Verspagen, B. (1991) A New Empirical Approach to Catching up or Falling behind. Structural Change and Economic Dynamics, No. 2, 359-380. https://doi.org/10.1016/S0954-349X(05)80008-6