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dc.titleProductivity and Resource Misallocation in Latin America
dc.contributor.authorBusso, Matías
dc.contributor.authorMadrigal, Lucía
dc.contributor.authorPagés, Carmen
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.date.available2012-05-01T00:00:00
dc.date.issue2012-04-01T00:00:00
dc.description.abstractTotal factor productivity (TFP) in Latin America has not increased since the mid- 1970s, and in many countries it has declined. Moreover, resource misallocation can lower aggregate TFP. This paper presents evidence based on firm-level data from 10 Latin American countries to quantify the heterogeneity of firm productivity and the degree of resource misallocation within countries. Productivity heterogeneity and resource misallocation are found to be much larger than in the United States. Achieving an efficient allocation of resources could boost manufacturing TFP between 45 percent and 127 percent depending on the countries and years considered.
dc.format.extent30
dc.identifier.doihttp://dx.doi.org/10.18235/0011371
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Productivity-and-Resource-Misallocation-in-Latin-America.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectProductivity
dc.subject.jelcodeD24 - Production • Cost • Capital • Capital, Total Factor, and Multifactor Productivity • Capacity
dc.subject.jelcodeL25 - Firm Performance: Size, Diversification, and Scope
dc.subject.jelcodeO47 - Empirical Studies of Economic Growth • Aggregate Productivity • Cross-Country Output Convergence
dc.subject.jelcodeO54 - Latin America • Caribbean
dc.subject.keywordsTotal factor productivity, Firm productivity, Firm heterogeneity, Misallocation costs
dc.typeWorking Papers
idb.identifier.pubnumberWorking Papers
idb.operationRG-K1113
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