Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/265682 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 15461
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Intersectoral linkages can act as shock propagation channels and shape the pattern of structural transformation. To our knowledge, no research has examined how subnational differences in intersectoral linkages impact such spillover effects. We hypothesize that regional differences in local economic shocks diversify intersectoral linkages, and, consequently, produce divergent patterns of structural transformation across regions. Using novel regional input-output tables and existing enterprise censuses for Ghana, we test and find support for four predictions related to this hypothesis: (1) a recent, positive mining output shock that occurred in the south of Ghana leads to growing differences in intersectoral linkages between the north and the south of the country, (2) the effect of the mining output shock on output and productivity growth in other sectors differs across regions in line with changes in the patterns of intersectoral linkages, (3) the elasticity of employment in other sectors with respect to the change in employment in mining closely follows the regional patterns of intersectoral linkages, and (4) variation in the mining output shock across time and space explains the variation in the rate of firm entry and average firm-level employment in sectors (such as heavy manufacturing) that largely depend on mining for intermediate inputs.
Subjects: 
structural transformation
intersectoral linkages
propagation of productivity shock
subnational areas
mining
Ghana
JEL: 
D24
F15
F43
N10
O11
O14
O47
D57
E32
L14
Q54
Document Type: 
Working Paper

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