Misallocation and Manufacturing TFP in Bolivia during the Market Liberalization Period

Machicado Carlos Gustavo () and Birbuet Juan Cristobal ()
Additional contact information
Machicado Carlos Gustavo: Institute for Advanced Development Studies
Birbuet Juan Cristobal: Centre for the Promotion of Sustainable Technologies
Authors registered in the RePEc Author Service: Carlos Gustavo Machicado Salas

The B.E. Journal of Macroeconomics, 2012, vol. 12, issue 1, 45

Abstract: This paper analyzes productivity dispersion in the Bolivian manufacturing sector during the Market Liberalization Period: 1988-2001. We analyze the effects of resource misallocation on manufacturing total factor productivity (TFP) with firm-level data and by employing the Hsieh and Klenow (2009) model. We found that if resource misallocation was eliminated, the gains in productivity would have been on the order of 54 percent on average and would have ranged from -6 percent to 38 percent relative to the United States (benchmark country). We also test if misallocation is related to reforms, and firm or geographical characteristics. There is suggestive evidence that the second-generation reforms were associated with an increase in the misallocation of resources that reached a peak in 1998, the year the economy experienced an important economic downturn.

Keywords: TFP; market structure; manufacturing (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
https://doi.org/10.1515/1935-1690.2304 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:bejmac:v:12:y:2012:i:1:n:18

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/bejm/html

DOI: 10.1515/1935-1690.2304

Access Statistics for this article

The B.E. Journal of Macroeconomics is currently edited by Arpad Abraham and Tiago Cavalcanti

More articles in The B.E. Journal of Macroeconomics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().