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Great Engines Turn On Small Pivots: A Productivity Analysis Of Small-Scale Manufacturing In Punjab, Pakistan

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  • SYED HASAN

    (Department of Economics, Lahore University of Management Sciences, Lahore 54792, Pakistan)

Abstract

This paper uses estimates of total factor productivity of small enterprises to identify the reasons underlying idiosyncratic variation. Empirical analysis is used to segregate internal and external determinants of productivity using a novel dataset. For reliable estimation, the baseline estimates are corrected for simultaneity bias using instrumental variables and selectivity bias through Heckman correction. Results identify significance of factors operating within firms; educational qualification and professional training of entrepreneurs for higher levels of productivity and the external drivers of productivity differences; sources of energy, selective access to credit and agglomeration economies. The research has important implications for entrepreneurs and policy intervention.

Suggested Citation

  • Syed Hasan, 2018. "Great Engines Turn On Small Pivots: A Productivity Analysis Of Small-Scale Manufacturing In Punjab, Pakistan," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(03), pages 1-19, September.
    • Handle: RePEc:wsi:jdexxx:v:23:y:2018:i:03:n:s1084946718500140
    DOI: 10.1142/S1084946718500140
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    References listed on IDEAS

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