Christian J. Meyer is a consultant at the World Bank’s Development Research Group. Previously, he was a research associate at the Center for Global Development (CGD).
Although Sub-Saharan Africa is increasingly attractive to investors, structural transformation and formal job growth remain slow. Industrial surveys in many countries show that some highly productive firms co-exist with many low-productivity businesses. Why do these “productivity islands” not diffuse more rapidly to create the “missing middle”? Our research (pdf) suggests three important factors.