Publication

This paper ties together the macroeconomic and microeconomic evidence on the competitiveness of African manufacturing sectors and provides a conceptual framework based on revised theories. According to the authors, macroeconomic data from purchasing power parity (PPP) estimates confirm that Africa is high-cost relative to its levels of income and productivity. This finding is compared with firm-level evidence from surveys undertaken for Investment Climate Assessments in 2000-2004. The paper concludes with a discussion of the findings for reforms to boost the competitiveness and diversification of African economies.