Drivers of bad management: evidence from Mexican firms

Nicholas Bloom, Leonardo Iacovone, Mariana Pereira-López and John van Reenen

CentrePiece - The magazine for economic performance from Centre for Economic Performance, LSE

Abstract: The management of firms in developing countries is typically of lower quality than in richer parts of the world. A study of Mexico by Nicholas Bloom, Leonardo Iacovone, Mariana Pereira-López and John Van Reenen indicates that misallocation (too many resources staying in badly run firms) is a key driver of these differences. Weak competition and inadequate rule of law seem to lie behind the difficulties that even well-managed firms have in growing.

Keywords: misallocation; management; performance; services; manufacturing; mexico (search for similar items in EconPapers)
Date: 2022-10-20
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepcnp:640

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