Convergence to the Managerial Frontier

William Maloney and Mauricio Sarrias

No 11946, Documentos CEDE from Universidad de los Andes, Facultad de Economía, CEDE

Abstract: Using detailed survey data on management practices, this paper uses recent advances in unconditional quartile analysis to study the changes in the within country distribution of management quality associated with country convergence to the managerial frontier. It then decomposes the contribution of potential explanatory factors to the distributional changes. The US emerges as the frontier country, not because of on average better management, but because its best firms are far better than those of its close competitors. Part of the process of convergence to the frontier across the development process represents a trimming of the left tail, much es movement of the central mass and, for rich countries, it is actually the best firms than lag the frontier benchmark. Among potential explanatory variables that may drive convergence, ownership and human capital appear critical, the former especially for poorer countries and that latter for richer suggesting that the mechanics of convergence change across the process. These variables lose their explanatory power as firm and average country management quality rises. Hence, once in the advanced country range, the factors than improve management quality are less easy to document and hence influence.

Keywords: management practices; convergence; development; quantile regression; RIF decomposition. (search for similar items in EconPapers)
JEL-codes: C21 L2 M2 O33 O47 (search for similar items in EconPapers)
Pages: 49
Date: 2014-06-13
New Economics Papers: this item is included in nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://repositorio.uniandes.edu.co/bitstream/handle/1992/8496/dcede2014-22.pdf

Related works:
Journal Article: Convergence to the managerial frontier (2017)
Working Paper: Convergence to the Managerial Frontier (2014)
Working Paper: Convergence to the managerial frontier (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000089:011946

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