Role of Industrialization on Economic Growth: The Experience of Senegal (1960-2017)

摘要

The aim of this study is to contribute to the investigation of the impact of industrialization on economic growth by analyzing the Senegalese manufacturing firms. The paper utilized the secondary data drawn from the World Bank (WDI 2015) and the National Agency of Statistic and Demography in Senegal (ANSD) and covered the period between 1960 and 2017. It will employ the Ordinary Least Square (OLS) techniques in estimating the relationship between industrial output, inflation rate, FDI, Foreign Exchange Rate and economic growth, after which ADF unit root test was conducted using Breusch-Godfrey serial correlation LM test and Breusch-Pagan-Godfrey heteroskedasticity test. The econometric analysis has shown that the increase of industrial output will increase economic growth in Senegal. Therefore, there is significant relationship between industrial development and Senegalese economy growth . However, the result revealed that industrialization will go a long way in stimulating economic growth. Based on these results, we have recommended some policy measures in order to boost industrial output by improving the overall productivity of all the sectors and ensure sustainable development.