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Firm Productivity in Bangladesh Manufacturing Industries

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Author Info
Fernandes, Ana M.

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Abstract

Summary This paper studies the correlates of firm total factor productivity (TFP) in Bangladesh using data from a recent survey of large manufacturing firms. TFP measures are obtained following [Ackerberg, D., Caves, K., & Frazer, G. (2007). Structural identification of production functions. UCLA mimeo] and using firm-specific deflators for output and inputs. Controlling for industry, location, and year fixed effects, we find that firm size and TFP are negatively correlated while firm age and TFP exhibit an inverse U-shaped relationship. We also find that managerial quality and global integration are positively associated with firm TFP. Finally, we find that power supply problems, heavy bureaucracy, and the presence of crime dampen firm TFP.

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Publisher Info
Article provided by Elsevier in its journal World Development.

Volume (Year): 36 (2008)
Issue (Month): 10 (October)
Pages: 1725-1744
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Handle: RePEc:eee:wdevel:v:36:y:2008:i:10:p:1725-1744

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Web page: http://www.elsevier.com/locate/worlddev

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Related research
Keywords: total factor productivity simultaneity and production functions skilled labor openness business environment Asia Bangladesh;

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References listed on IDEAS
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  13. Hallward-Driemeier, Mary & Wallsten, Scott & Lixin Colin Xu, 2003. "The investment climate and the firm : firm-level evidence from China," Policy Research Working Paper Series 3003, The World Bank. [Downloadable!]
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  16. Beck, Thorsten & Demirguc-Kunt, Asli & Maksimovic, Vojislav, 2002. "Financial and legal constraints to firm growth - Does size matter?," Policy Research Working Paper Series 2784, The World Bank. [Downloadable!]
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  18. Haijime Katayama & Shihua Lu & James Tybout, 2003. "Why Plant-Level Productivity Studies are Often Misleading, and an Alternative Approach to Interference," NBER Working Papers 9617, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  25. Sakellaris, Plutarchos, 2004. "Patterns of plant adjustment," Journal of Monetary Economics, Elsevier, vol. 51(2), pages 425-450, March. [Downloadable!] (restricted)
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  28. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May. [Downloadable!] (restricted)
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