Resource misallocation and total factor productivity: Manufacturing firms in South Africa

Carol Newman, John Rand and Mpho Tsebe

No wp-2019-46, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Misallocation of labour and capital can greatly reduce aggregate productivity. In this study, we use tax administrative data to examine the extent of resource misallocation in the South African context. In addition, we zoom in on how different government incentives affect the allocation (or misallocation) of capital and labour across firms, and we quantify the extent to which alleviating these policy-induced distortions would improve productivity for the manufacturing sector in South Africa.

Keywords: Resource misallocation; Productivity (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-eff and nep-fdg
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Citations: View citations in EconPapers (3)

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