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Decomposing firm-level productivity growth and assessing its determinants: evidence from the Americas

J. David Brown (), Gustavo A. Crespi (), Leonardo Iacovone () and Luca Marcolin ()
Additional contact information
Gustavo A. Crespi: Inter-American Development Bank
Luca Marcolin: KULeuven

The Journal of Technology Transfer, 2018, vol. 43, issue 6, 1571-1606

Abstract: Abstract This paper provides novel empirical evidence on productivity growth in the manufacturing sector in Chile, Colombia, Mexico and Peru. Relying on plant-level data, we first decompose productivity and productivity growth into plant-level growth and market allocation forces. While the average productivity of the survivors is higher than the overall contribution of reallocation forces, during recessions the inverse is true and reallocation gives a positive, albeit small, contribution to aggregate productivity growth. Next we analyze how policy measures can determine allocative efficiency levels and growth, and find important scope for action on education, financial regulation, and structural reforms.

Keywords: Plant-level; Productivity; Decompositions; Regulation; Growth (search for similar items in EconPapers)
JEL-codes: D22 L5 O47 (search for similar items in EconPapers)
Date: 2018
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