In economics, economic transformation refers to the continuous process of (1) moving labour and other resources from lower- to higher-productivity sectors (structural change[1]) and (2) raising within-sector productivity growth.
[2] As such, economic transformation emphasises the movement from low- to high-productivity activities within and across all sectors (which can be tasks or activities that are combinations of agriculture, manufacturing and services).
This movement of resources from lower- to higher-productivity activities is a key driver of economic development.
(2020) Africa’s economic transformation: the role of Chinese investment McMillan, M., J.
Supporting Economic Transformation: An approach paper Worral, L. K. Vrolijk, C. Mason and N. Balchin (2015).