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NUMERO 20 - 29/10/2014

 What are the determining factors of Industrialization in Africa?

In this paper, we run dynamic panel model describing the relationship between industrialization and different socio-economic, financial and institutional determinants for 35 African countries over the period 1970-2012.  We conduct also many sub-regional and sub-period analyses in order to check the robustness of the results. Our main results are the following: (i) as generally found in the literature, financial development, governance and labor market regulation have significant effects on industry; (ii) exchange rate appreciation is detrimental to the industrialization process (iii) financial and institutional factors are the main determinants of industrialization in the northern and eastern countries while socioeconomic factors matter more for the western and southern countries (iv) differences in the power of the industrialization determinants are not likely to emerge... (segue)

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