The Role of Resource Misallocation in Cross-country Differences in Manufacturing Productivity

Marcel Timmer, Addisu Lashitew () and Robert Inklaar

No GD-143, GGDC Research Memorandum from Groningen Growth and Development Centre, University of Groningen

Abstract: When capital and labor are not allocated to the more productive firms, aggregate total factor productivity (TFP) suffers. Can this explain observed productivity differences across countries? We estimate manufacturing TFP levels for 52 developing countries and decompose it into a part due to misallocation and a part due to (residual) technology differences. The results show that removing misallocation would increase TFP by an average of 60 percent, but productivity gaps relative to the US remain large. The degree of misallocation is uncorrelated with observed productivity.

Date: 2014
New Economics Papers: this item is included in nep-eff and nep-tid
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://irs.ub.rug.nl/ppn/371436273 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://irs.ub.rug.nl/ppn/371436273 [302 Found]--> https://irs.ub.rug.nl/ppn/371436273 [302 Found]--> https://www.rug.nl/research/portal/publications/pub(09e902c7-d9e7-4a8f-ac77-62cba06948fc).html [301 Moved Permanently]--> https://research.rug.nl/en/publications/pub(09e902c7-d9e7-4a8f-ac77-62cba06948fc).html [301 Moved Permanently]--> https://research.rug.nl/en/publications/the-role-of-resource-misallocation-in-cross-country-differences-i)

Related works:
Journal Article: THE ROLE OF RESOURCE MISALLOCATION IN CROSS-COUNTRY DIFFERENCES IN MANUFACTURING PRODUCTIVITY (2017)
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:gro:rugggd:gd-143

Access Statistics for this paper

More papers in GGDC Research Memorandum from Groningen Growth and Development Centre, University of Groningen Contact information at EDIRC.
Bibliographic data for series maintained by Hanneke Tamling ().