Transition in Sub-Saharan Africa: Agriculture, Urbanization and Income Growth
Econometric analysis of some 40 years of data has provided mixed results, because of the defects of the data, and because there are some relatively sudden structural economic shifts. An important shift is when agricultural labor ceases to grow, now happening in sub-Saharan Africa (SSA). A model of the interrelationship over time of the rural, mainly agricultural sector, and the urban, mainly manufacturing and service sector, is proposed. Each provides a market to the other. Growth in both requires investment, but of distinctly different types.