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Decomposing firm-level productivity growth and assessing its determinants: evidence from the Americas

Author

Listed:
  • J. David Brown

    () (IZA)

  • Gustavo A. Crespi

    () (Inter-American Development Bank)

  • Leonardo Iacovone

    () (World Bank)

  • Luca Marcolin

    () (KULeuven
    OECD)

Abstract

This paper provides novel empirical evidence on productivity growth in the manufacturing sector in Chile, Colombia, Mexico and Peru. Relying on plant-level data, we first decompose productivity and productivity growth into plant-level growth and market allocation forces. While the average productivity of the survivors is higher than the overall contribution of reallocation forces, during recessions the inverse is true and reallocation gives a positive, albeit small, contribution to aggregate productivity growth. Next we analyze how policy measures can determine allocative efficiency levels and growth, and find important scope for action on education, financial regulation, and structural reforms.

Suggested Citation

  • J. David Brown & Gustavo A. Crespi & Leonardo Iacovone & Luca Marcolin, 2018. "Decomposing firm-level productivity growth and assessing its determinants: evidence from the Americas," The Journal of Technology Transfer, Springer, vol. 43(6), pages 1571-1606, December.
  • Handle: RePEc:kap:jtecht:v:43:y:2018:i:6:d:10.1007_s10961-018-9678-0
    DOI: 10.1007/s10961-018-9678-0
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    More about this item

    Keywords

    Plant-level; Productivity; Decompositions; Regulation; Growth;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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