Dynamic Patterns of Growth and Structural Transformation: Comparative Regional Insights and Strategic Lessons

This study analyzes economic growth and structural transformation (ST) across East Asia (EA), Southeast Asia (SEA) and Sub-Saharan Africa (SSA) regions from 1980 to 2020, utilizing Shapley growth decomposition to evaluate sectoral contributions to productivity and income growth. It highlights the pivotal role of ST in driving sustained growth and reveals distinct regional trajectories. EA transitioned effectively from agriculture to manufacturing and high-tech services, propelled by industrialization and export-led growth. In contrast, SSA's progress has been slower, with limited industrialization and dependence on agriculture and low-value services, resulting in fragile growth. While EA exemplifies economic maturity with a shift to high-value services, its declining manufacturing share underscores the need to sustain industrial competitiveness. SEA’s balanced growth, driven by industrialization and rising service employment, calls for investments in manufacturing and infrastructure to avoid premature deindustrialization. SSA's underindustrialization and reliance on low-productivity services reflect enormous structural challenges, necessitating industrialization, agricultural modernization, and service-sector development to foster growth and reduce poverty. To achieve sustainable growth, SEA must enhance manufacturing competitiveness, SSA should prioritize industrialization and productivity improvements, and EA must focus on innovation-driven growth in high-value services to maintain its economic success. JEL Codes: O11, O13, O14, O41, O47, R11