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Impact of Manufacturing Sector on Economic Growth in East Africa: Evidence from World Bank National Accounts Data

Year: 2025

Type: article

Abstract: The paper analyses the impact of the manufacturing sector on economic growth in Kenya, Tanzania, Ethiopia and Uganda using World Bank national accounts panel data for the period 2000-21. During the two decades, the share of the sector’s growth to gross domestic growth remained low. Agriculture and service sector accounted for the greatest share in the growth of the economies being studied. The study uses fixed effects regression for analysis. Results show that manufacturing sector promotes economic growth in line with Kaldor’s first law. The findings suggest the need to support and strengthen infrastructure and working environment for manufacturing firms, as well as woo more firms especially in areas of comparative advantage.

Source: International Journal of Academic Research in Business and Social Sciences

DOI: 10.6007/ijarbss/v15-i12/27231

Authors: Mutunga Dennis Maundu, Kamau Gathiaka

Language: English

Topic: Economic Growth and Productivity

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: diamond

OpenAlex ID: W7114986222

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