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Firm Productivity in Bangladesh Manufacturing Industries

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  • Fernandes, Ana M.

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.

Suggested Citation

  • Fernandes, Ana M., 2008. "Firm Productivity in Bangladesh Manufacturing Industries," World Development, Elsevier, vol. 36(10), pages 1725-1744, October.
  • Handle: RePEc:eee:wdevel:v:36:y:2008:i:10:p:1725-1744
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    Cited by:

    1. Peters, Jörg & Vance, Colin & Harsdorff, Marek, 2011. "Grid Extension in Rural Benin: Micro-Manufacturers and the Electrification Trap," World Development, Elsevier, vol. 39(5), pages 773-783, May.
    2. Ke Li & Jie Zhang & Yihua Yu & Zhibiao Liu, 2010. "Does Market‐Oriented Economic Transition Enhance Enterprise Productivity? Evidence From China'S Enterprises," Pacific Economic Review, Wiley Blackwell, vol. 15(5), pages 719-742, December.
    3. Albert-Pol Miró, 2014. "Diferenciales de productividad empresarial según su posición internacional. El caso del sector químico español," DIMENSIÓN EMPRESARIAL, UNIVERSIDAD AUTONOMA DEL CARIBE, February.
    4. Edwards, Lawrence & Balchin, Neil, 2008. "Trade related business climate and manufacturing export performance in Africa: A firm-level analysis," MPRA Paper 32863, University Library of Munich, Germany.
    5. Thanapol Srithanpong, 2016. "Firm Productivity in Thai Manufacturing Industries: Evidence from Firm-level Panel Data," PIER Discussion Papers 15., Puey Ungphakorn Institute for Economic Research, revised Jan 2016.
    6. Lisa CHAUVET & Alvaro DE MIGUEL TORRES & Alexa TIEMANN, 2018. "Electricity and manufacturing firm profits in Myanmar," Working Papers P214, FERDI.
    7. Ahmed, Nazneen & Peerlings, Jack H.M., 2009. "Addressing Workers' Rights in the Textile and Apparel Industries: Consequences for the Bangladesh Economy," World Development, Elsevier, vol. 37(3), pages 661-675, March.
    8. Thomas Farole & Yoonyoung Cho, 2017. "Bangladesh Jobs Diagnostic," World Bank Other Operational Studies 28498, The World Bank.
    9. Fernandes, Ana M., 2008. "Firm Productivity in Bangladesh Manufacturing Industries," World Development, Elsevier, vol. 36(10), pages 1725-1744, October.
    10. Reshad N. Ahsan & Kazi Iqbal, 2016. "How Do Exporters Cope With Violence? Evidence from Political Strikes in Bangladesh," Department of Economics - Working Papers Series 2025, The University of Melbourne.
    11. Lisa Chauvet & De Miguel Torres Alvaro & Alexa Tiemann, 2018. "Electricity and manufacturing firm profits in Myanmar," Post-Print hal-01715529, HAL.
    12. Wahida Ahmad & David Prentice, 2015. "How large are productivity differences between Islamic and Conventional Banks?," Discussion Papers 2015/09, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
    13. Lisa CHAUVET & Alvaro DE MIGUEL TORRES & Alexa TIEMANN, 2018. "Electricity and manufacturing firm profits in Myanmar," Working Papers P214, FERDI.

    More about this item

    Keywords

    total factor productivity simultaneity and production functions skilled labor openness business environment Asia Bangladesh;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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