Production Transformation and Sectoral Engine of Growth Drive: a Comparative Exploration on Sub-Saharan Africa and Asian Economies

The doctoral dissertation intends to explore the level and patterns of production transformation, centering the analysis on sample economies from East Asia, Southeast Asia, South Asia and SSA. It consists of seven parts. The general introduction gives outline of the research theme, claims (problem statement), objectives and research questions. It also introduces the motivation, content and contributions of each of the six parts to the dissertation. Part two intends to give conceptual discussions on production transformation and to review relevant theoretical strands on structural transformation and structural change. The aim is to grasp useful insights on how the dynamic evolution of the production structure of an economy towards the increasing returns sector (chiefly manufacturing) pertains to employment creation, cumulative productivity increases and sustainable development. As a continuation of part two, part three seeks to discuss sectoral role of growth, framing the analytical framework in favor of the dynamic synergetic relationship between sectors (which is related to the multi-sectoral multiplier approach). With the aim at contributing to the debate on sector-led development route and wealth creation in today’s low-income economies that failed to have their own industrialization imitating the advanced economies as well as to the debate on industrialization and service transformation, part three devotes to critically and thoroughly review the tenet of the different theoretical strands (past and present) on engine of growth hypothesis. It contributes to the industrialization or the production transformation and development literature by synthesizing the role of manufacturing and other sectors (agriculture and services) to economic development and poverty reduction in the developing economies context in SSA and Asia. The lengthy discussion of part three vindicated the existence of a synergetic relation between economic sectors and production activities [and the “stimulus complement” role of services to manufacturing] through addressing hosts of questions. The remaining parts of the dissertation were intended to validate the proposed synergetic relationship between economic sectors as well as the “stimulus complement” role of services to manufacturing rather than substitute to it. The possibility for synergetic relationship between manufacturing and services activities in the transformation and development process has been missing or received very little attention in the debate hitherto – advocates of each sector completely ignore or place little focus on the existence of a dynamic synergetic relationship between them. The dissertation calls for synergy because everything is interconnected in the economic system. One cannot discuss about development without acknowledging structural heterogeneity of the economy. So, it is difficult to separately discuss or define anything clearly; difficult to draw stylized fact with respect to sectoral role in economic transformation and development process that is clear and accepted by all. This is simply because synergy by its conception involves logging a middle course between polarized ideas (extremes). In short, synergy rejects extremes and often calls for the ‘middle way,’ neither too far to the right nor to the left. Often the truth in real world production is neither one alternative nor the other but both. Choosing synergy generally requires one to accept ambiguity, uncertainty, mystery and paradox. For instance, manufacturing has indispensable role in the economy; but, agriculture should not be marginalize and belittled, nor services be ignored. The economy needs both, despite manufacturing conventionally has special place to play pivotal role than others.