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Microeconomic Adjustment During Structural Reforms: The Nicaraguan Manufacturing Sector 1991-1995

Author

Listed:
  • Isgut, Alberto

    (Department of Economics, Wesleyan University)

  • Tello, Mario

    (Universidad Catolica del Peru)

  • Veiderpass, Ann

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

Abstract

The main rationale for the implementation of structural reforms favoring free markets is that they, through increased competition, are likely to create incentives to improve the way firms operate i.e. firm efficiency. In this study we measure and analyze total factor productivity and technical efficiency in a large sample of Nicaraguan manufacturing firms. Our analysis indicates that whereas structural reforms may be necessary conditions for the development of developing economies, their expected positive effects on sources of growth such as total factor productivity and technical efficiency could be so slow that it may be necessary to develop sufficient conditions or policy instruments for spurring economic growth in the short run.

Suggested Citation

  • Isgut, Alberto & Tello, Mario & Veiderpass, Ann, 1998. "Microeconomic Adjustment During Structural Reforms: The Nicaraguan Manufacturing Sector 1991-1995," Working Papers in Economics 11, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0011
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    Citations

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    Cited by:

    1. Mario D. Tello, 2005. "Do Developing Countries Benefit from Antidumping Laws? An Assessment Based upon a Theoretical Dumping Model," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 2(1), pages 3-35, Julio-Dic.
    2. Veiderpass, Ann & Andersson, Per-Åke, 2009. "Is aid the capital component making countries efficient?," Working Papers in Economics 333, University of Gothenburg, Department of Economics.

    More about this item

    Keywords

    Central America; Nicaragua; Productivity; Efficiency; Manufactures; Exports;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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