Producer Turnover and Productivity Growth in Developing Countries
The reallocation of resources, either across sectors or across producers within a sector, can serve as a potential source of productivity growth. New research findings exploit comprehensive microeconomic data on the manufacturing sectors of Chile, Colombia, and Morocco to document resource shifts as producers enter, expand, contract, and exit operation. The micro-level adjustment is substantial; between 25 and 30 percent of the total number of manufacturing jobs turn over each year. In the short run, the productivity effects of this turnover are modest because the new plants that come on line are only slightly more productive than the ones they replace‹and both are typically small. In the longer term, however, the turnover generates more substantial increases in productivity because the new firms that survive record substantial productivity gains in their early years. Moreover, firms that exit are typically on a downward productivity spiral and would probably have dragged down sectoral efficiency farther if they had continued in operation.
Volume (Year): 12 (1997)
Issue (Month): 1 (February)
|Contact details of provider:|| Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK|
Phone: (202) 477-1234
Fax: 01865 267 985
Web page: http://wbro.oxfordjournals.org/
More information through EDIRC
|Order Information:||Web: http://www.oup.co.uk/journals|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
- Dani Rodrik, 1988. "Imperfect Competition, Scale Economies, and Trade Policy in Developing Countries," NBER Chapters, in: Trade Policy Issues and Empirical Analysis, pages 109-144 National Bureau of Economic Research, Inc.
- George S Olley & Ariel Pakes, 1992.
"The Dynamics Of Productivity In The Telecommunications Equipment Industry,"
92-2, Center for Economic Studies, U.S. Census Bureau.
- Olley, G Steven & Pakes, Ariel, 1996. "The Dynamics of Productivity in the Telecommunications Equipment Industry," Econometrica, Econometric Society, vol. 64(6), pages 1263-97, November.
- G. Steven Olley & Ariel Pakes, 1992. "The Dynamics of Productivity in the Telecommunications Equipment Industry," NBER Working Papers 3977, National Bureau of Economic Research, Inc.
- Pursell, Garry, 1990. "Industrial Sickness, Primary and Secondary: The Effects of Exit Constraints on Industrial Performance," World Bank Economic Review, World Bank Group, vol. 4(1), pages 103-14, January.
- Tybout, James R, 1992. "Linking Trade and Productivity: New Research Directions," World Bank Economic Review, World Bank Group, vol. 6(2), pages 189-211, May.
- Lambson, V.E., 1989. "Industry Evolution With Sunk Costs And Uncertian Market Conditions," Working papers 8904, Wisconsin Madison - Social Systems.
- Hopenhayn, Hugo A, 1992. "Entry, Exit, and Firm Dynamics in Long Run Equilibrium," Econometrica, Econometric Society, vol. 60(5), pages 1127-50, September.
- Ricardo J. Caballero & Mohamad L. Hammour, 1991.
"The Cleansing Effect of Recessions,"
NBER Working Papers
3922, National Bureau of Economic Research, Inc.
- Richard Ericson & Ariel Pakes, 1995. "Markov-Perfect Industry Dynamics: A Framework for Empirical Work," Review of Economic Studies, Oxford University Press, vol. 62(1), pages 53-82.
When requesting a correction, please mention this item's handle: RePEc:oup:wbrobs:v:12:y:1997:i:1:p:1-18. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.