The Role of Labour Productivity, Manufacturing Sector Output and Export of Finished Goods in Achieving Transformational Productivity in Selected African Countries

In this study transformational productivity refers to the capacity of an economy to attain long term gains in productive capacity by means of structural upgrading, technology adoption and sectoral efficiency gains. In contrast to straightforward productivity indicators, it reflects the efficiency gains inside a sector, as well as transitions to more value-added processes. As a way of operationalizing this concept, the study uses the Productive Capacities Index (PCI) that was developed by UNCTAD, which is a multidimensional measure of productive capabilities such as human capital, infrastructure, institutions, and structural change. This paper analyses the correlation between labour productivity, production in the manufacturing sector and exports of finished goods in the chosen African countries (Nigeria, Kenya, and Ethiopia) based on annual panel data between 2000 and 2022 (N = 69 observations). An ARDL panel framework is embraced to estimate both short and long-run dynamics. Results indicate that despite expected signs of the explanatory variables, the majority of the coefficients are statistically non-significant, which implies that the sectoral performance and transformational productivity are not significantly transmitted by the relevant variables in the sampled economies.. The empirical result showed a negative and insignificant relationship between labour productivity and transformational productivity; a positive but insignificant relationship between manufacturing sector output and transformational productivity; and also a positive and insignificant relationship between export of finished goods and transformational productivity. The study therefore concludes that labour productivity, manufacturing sector output and export of finished goods impacts on transformational productivity but not in a very significant way. If it must impact on it positively as suggested by theories then there is need to look at African dynamics to see how they can be helpful in achieving transformational productivity in Nigeria.

Labour productivity, manufacturing sector, transformational productivity

1. Acheampong T &Vitenu-Sackey P. A (2024) Industralisation in Africa: Leading countries and their reasons for success, Africa Policy Research Institute. Retrieved from www.afripoli.org [Google Scholar] [Crossref]

2. Adams, S., &Klobodu, E. K. M. (2021).Financial development and structural transformation. Cogent Economics & Finance, 9(1), 1875978.https://doi.org/10.1080/23322039.2021.1875978 [Google Scholar] [Crossref]

3. Adebayo, R.1. (2010). Zakat and poverty alleviation: A lesson for the fiscal policy makers in Nigeria. Journal Islamic Economics, Banking and finance 7 (4). 26-41. [Google Scholar] [Crossref]

4. Adeleye, B. N., Adedoyin, F. F., & Nathaniel, S. (2021).The criticality of ICT-trade nexus on economic and inclusive growth in Africa. Structural Change and Economic Dynamics, 56, 354–367.https://doi.org/10.1016/j.strueco.2020.12.002 [Google Scholar] [Crossref]

5. Adofu, 1. Taiga, U. U. & Tijani, Y (2015). Manufacturing sector and economic growth in Nigeria. Donnish Journal of Economics and International Finance, Vol. 1, No; 1, Pp.1-6. [Google Scholar] [Crossref]

6. Akpoghelie, E. O., Metu, A. G., Chukwuka, S. M., Chiadika, E. O., &Keremah, S. C. (2025). Energy consumption, human development, and industrial sector performance in Nigeria. In R. Osabohien (Ed.), Energy efficiency in critical times: Security, economics, and transition (pp. 93–106). Elsevier. https://doi.org/10.1016/B978-0-443-28949-1.00007-2 [Google Scholar] [Crossref]

7. Akpoghelie, E. O., Chukwuka, S. M., Chiadika, E. O., Ijokoh, A. S. U. M., &Ibobo, R. I. (2025). Effect of public-private partnerships expenditure on economic development: A vector autoregressive (VAR) approach. DELSU Journal of Management Sciences, 7(2, Special Issue), 1–15. [Google Scholar] [Crossref]

8. APO- Asian Productivity Organisation (2022). Manufacturing transformation: Case studies in selected APO member countries [Google Scholar] [Crossref]

9. Atkin D (2014). Does exporting increase business productivity? World economic forum [Google Scholar] [Crossref]

10. Ayala, M (2014). Manufacturing the only engine of growth? An extension of Kaldor´s first law of economic growth – Master Thesis. University of Vienna [Google Scholar] [Crossref]

11. Bhorat, H., Kanbur R, Rooney& Steenkamp F.(2017), Sub-Saharan Africa’s manufacturing sector: Building complexity, Working Paper Series N° 256, African Development Bank, Abidjan, Côte d’Ivoire. [Google Scholar] [Crossref]

12. Ewa, S & Lebo, M. P (2019).Challenges of manufacturing sub-sector to compete in foreign markets: The Nigerian experience. EJBMR, European Journal of Business and Management Research, Vol. 4, No. 5. DOI: http://dx.doi.org/10.24018/ejbmr.2019.4.5.92 [Google Scholar] [Crossref]

13. Eze, O.R., &Ogili, F.O. (2013). Impact of fiscal policy on manufacturing output in Nigeria: Anerror correction analysis. International Journal of Business and Management Review(IJBMR), Vol. 1, No. 3, pp 35-55, September, 2013 [Google Scholar] [Crossref]

14. Global Africa network (2024). Key challenges hindering manufacturing growth in Africa in 2024. Retrieved from www.globalafricanetwork.comon May, 2025 [Google Scholar] [Crossref]

15. Hidalgo, C.A., Hausmann, R. & Dasgupta, P.S., (2009). The building blocks of economic complexity. Proceedings of the National Academy of Sciences of the United States of America, 106(26), pp.10570–10575. Available at: http://www.jstor.org/stable/40483593 . [Google Scholar] [Crossref]

16. Madueke, C. M., Chukwuka, S. M., Ozoh, J. N., Akaolisa, C. J., &Imoagwu, C. P. (2022). Managing COVID-19 crisis in Nigeria: Impact on informal small and medium-scale enterprises in Anambra State. International Journal of Research and Innovation in Social Science, 6(9), (520-525). https://dx.doi.org/10.47772/IJRISS.2022.6924 [Google Scholar] [Crossref]

17. McMillan, M., Rodrik, D., & Verduzco-Gallo, Í. (2021).Globalization, structural change, and productivity growth. Journal of Development Economics, 148, 102567. [Google Scholar] [Crossref]

18. https://doi.org/10.1016/j.jdeveco.2020.102567 [Google Scholar] [Crossref]

19. Nkoro, E., & Uko, A. K. (2016).Autoregressive Distributed Lag (ARDL) cointegration technique. Journal of Statistical and Econometric Methods, 5(4), 63–91. [Google Scholar] [Crossref]

20. Nwokoye, E. S, Chukwuka, M. S., Akpoghelie, O. E., & Ebuwa E. I. (2022). Globalization and the industrial sector performance: The Nigeria experience, International Journal of Development and Economic Sustainability, Vol.10, No.3, pp.1-18. [Google Scholar] [Crossref]

21. Ogundipe, A. A., & Olarewaju, F.O. (2020). Manufacturing Output and Labour Productivity: Evidence from ECOWAS.E-ISSN 2281-4612 ISSN 2281-3993Academic Journal of Interdisciplinary Studies www.richtmann.orgVol. 9No 5 [Google Scholar] [Crossref]

22. Ozoh, J. N., Metu, A. G., Stephen, C. M., & Madueke, C. (2020). Poverty alleviation programme and poverty reduction in Anambra state: Evidence from women business ownership. Advances in Social Sciences Research Journal, 7(1), 217–229. https://doi.org/10.14738/assrj.71.7546 [Google Scholar] [Crossref]

23. Page, J., (2012). Can Africa industrialize? Journal of African Economies, 21(2), p.ii86-ii125.Available at: http://jae.oxfordjournals.org/cgi/doi/10.1093/jae/ejr045. [Google Scholar] [Crossref]

24. Pesaran, M. H., Shin, Y., & Smith, R. J. (2001).Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326.https://doi.org/10.1002/jae.616 [Google Scholar] [Crossref]

25. Rodrik, D., (2014). An African growth miracle? ,NBER Working Paper No. 20188. NBER: Available at:http://www.nber.org/papers/w20188%5Cnhttp://www.nber.org [Google Scholar] [Crossref]

26. Stephen M. C., Emmanuel O. A., Jude O. D., Amaka G., M., EKE, D. C., and Kingsley O. (2025). “Clean Energy, Economic Development and the Distortions in Nigeria’s Petroleum Industry”. Asian Journal of Economics, Finance and Management 7 (1):87-96. [Google Scholar] [Crossref]

27. https://doi.org/10.56557/ajefm/2025/v7i1256. [Google Scholar] [Crossref]

28. Tella, S. (2023). Nigerians and labour productivity. Retrieved from www.punchng.com on May, 2025 [Google Scholar] [Crossref]

29. UNCTAD (2025). Productive capacities development: Challenges and opportunities: The case of Ethiopia [Google Scholar] [Crossref]

30. UNCTAD (2025). Productive capacities development: Challenges and opportunities: The case of Kenya [Google Scholar] [Crossref]

• Impact of Foreign Direct Investment in India
• Issues Involved in Digitalisation Special Reference to Indian Tourism Growth
• Relationship Marketing and Customer Loyalty in the Fast-Moving Consumer Goods (FMCG) Industry in Nairobi County
• Financial Literacy or Financial Inclusion? Which is Which, What is What—To Achieve Uganda’s 10-Fold Economic Growth By 2040
• Harnessing Natural Gas for Economic Transformation: Overcoming the Regulatory and Infrastructural Bottlenecks in Nigeria