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Microeconomic Adjustment During Structural Reforms: The Nicaraguan Manufacturing Sector 1991-1995

Listed author(s):
  • Isgut, Alberto


    (Department of Economics, Wesleyan University)

  • Tello, Mario

    (Universidad Catolica del Peru)

  • Veiderpass, Ann

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

The main rationale for the implementation of structural reforms favoring free markets is that they, through increased competition, are likely to create incentives to improve the way firms operate i.e. firm efficiency. In this study we measure and analyze total factor productivity and technical efficiency in a large sample of Nicaraguan manufacturing firms. Our analysis indicates that whereas structural reforms may be necessary conditions for the development of developing economies, their expected positive effects on sources of growth such as total factor productivity and technical efficiency could be so slow that it may be necessary to develop sufficient conditions or policy instruments for spurring economic growth in the short run.

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Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 11.

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Length: 28 pages
Date of creation: 30 Dec 1998
Publication status: Published in Canadian Journal of Development Studies, 1999, pages 545-566.
Handle: RePEc:hhs:gunwpe:0011
Contact details of provider: Postal:
Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden

Phone: 031-773 10 00
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