In the U.S., some sectoral evidence suggests that growth is driven mainly by productivity enhancing reallocation. In … developing countries, an open question is whether reallocation is productivity enhancing. Using a unique plant-level longitudinal … dataset for Colombia for the period 1982-1998 we examine the interaction between market allocation, productivity and …

reallocation is closely linked to productivity. While these patterns hold on average, the extent to which the reallocation dynamics … accelerated reallocation even more productivity enhancing than reallocation in normal times. In the Great Recession, we find the … intensity of reallocation fell rather than rose and the reallocation that did occur was less productivity enhancing than in …