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Economic Liberalization and Productivity Growth: Further Evidence From Bangladesh

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  • Ruhul Amin Salim

Abstract

The impact of economic liberalization reforms on the productive performances of manufacturing firms remains a contentious issue in the literature. This paper attempts to contribute to the debate by empirically estimating productivity growth of Bangladesh food manufacturing using firm level data before and after reform. Empirical results show that the share of output growth was accounted for by input growth in most sectors of this industry. In some sectors, the estimated rate of total factor productivity (TFP) growth is negligible or even negative. Decomposition of the TFP growth shows that technological progress plays a significant role in TFP growth across firms within the sub-sectors of this industry. Empirical results also show that the relative contribution of capacity realization to TFP growth is not substantial in inhibiting the industry's high and sustained growth. These dismal performances indicate that the industries responded a little to the implementation of economic reforms.

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  • Ruhul Amin Salim, 2003. "Economic Liberalization and Productivity Growth: Further Evidence From Bangladesh," Oxford Development Studies, Taylor & Francis Journals, vol. 31(1), pages 85-98.
    • Handle: RePEc:taf:oxdevs:v:31:y:2003:i:1:p:85-98
    DOI: 10.1080/1360081032000047203
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    1. Jagdish N. Bhagwati, 1978. "Anatomy of Exchange Control Regimes," NBER Chapters, in: Foreign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes, pages 7-52, National Bureau of Economic Research, Inc.
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    3. John Williamson, 1994. "The Political Economy of Policy Reform," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 68, January.
    4. Jagdish N. Bhagwati, 1978. "Foreign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes," NBER Books, National Bureau of Economic Research, Inc, number bhag78-1.
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    Cited by:

    1. Mahmut Yasar & Roderick M. Rejesus & Ilhami Mintemur, 2006. "Plant-level dynamics and aggregate productivity growth in the Turkish meat-processing industry: Evidence from longitudinal data," Agribusiness, John Wiley & Sons, Ltd., vol. 22(1), pages 91-107.
    2. Mohanty, S. K. & Gaur, Pankhuri, 2022. "Developments in Agriculture Trade in the BIMSTEC Region," PRCI Research Papers 330120, Michigan State University, Department of Agricultural, Food and Resource Economics, Food Security Group.
    3. Mukherjee, Subhadip & Chanda, Rupa, 2021. "Tariff liberalization and firm-level markups in Indian manufacturing," Economic Modelling, Elsevier, vol. 103(C).
    4. Alvaro CUERVO-CAZURRA & Luis Alfonso DAU, 2008. "Structural Reform And Firm Profitability In Developing Countries," William Davidson Institute Working Papers Series wp940, William Davidson Institute at the University of Michigan.
    5. Dau, Luis Alfonso & Moore, Elizabeth M. & Kostova, Tatiana, 2020. "The impact of market based institutional reforms on firm strategy and performance: Review and extension," Journal of World Business, Elsevier, vol. 55(4).
    6. Amirul Islam & Ruhul Salim & Harry Bloch, 2016. "Does Regional Integration Affect Efficiency And Productivity Growth? Empirical Evidence From South Asia," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 28(2), pages 107-122, July.
    7. Alvaro Cuervo-Cazurra & Luis Alfonso Dau, 2009. "Structural Reform and Firm Exports," Management International Review, Springer, vol. 49(4), pages 479-507, September.
    8. M. Aminul Islam Akanda, 2022. "Policy Gaps with Bangladesh Compared to a Few Asian Economies along the Linear Stages Growth Path," International Journal of Economics and Financial Issues, Econjournals, vol. 12(5), pages 117-128, September.
    9. Sumonkanti Das & Md. Azizul Baten & Md. Masud Rana & Md. Abdul Kheleque, 2008. "Analysis of the Growth of Manufacturing Industries in Bangladesh," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 9(1), pages 85-108, June.

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