Cross-country and within-country differences in the business climate
In this note we document how constraints in the business environment, as perceived by individual firms, differ both across countries and within each country, across firms. This finding is of key importance given recent theoretical models that suggest idiosyncratic distortions can have large aggregate effects. Not only do such distortions affect the behaviour of incumbent firms, but they also impinge on the selection of firms that enter the market or leave it. Empirical research should attempt to link idiosyncratic components of the business climate to firm selection and to distortions in the allocation of factors inputs across firms and, through these channels, to aggregate economic performance.
Year of publication: |
2010
|
---|---|
Authors: | Bartelsman, Eric ; Haltiwanger, John ; Scarpetta, Stefano |
Published in: |
International Journal of Industrial Organization. - Elsevier, ISSN 0167-7187. - Vol. 28.2010, 4, p. 368-371
|
Publisher: |
Elsevier |
Keywords: | Firm dynamics Economic institutions Comparative economic systems Firm-level heterogeneity |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Measuring and analyzing cross-country differences in firm dynamics
Bartelsman, Eric J., (2009)
-
Cross-country differences in productivity : the role of allocation and selection
Bartelsman, Eric J., (2009)
-
Cross-country differences in productivity : the role of allocation and selection
Bartelsman, Eric J., (2009)
- More ...