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We use an innovative survey tool to collect management practice data from over 4,000 medium sized manufacturing firms across Asia, Europe and the US. These measures of managerial practice are strongly associated with firm-level performance (e.g. productivity, profitability and stock market...
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We argue that social capital as proxied by regional trust and the Rule of Law can improve aggregate productivity …. Trust and the Rule of Law appear to facilitate delegation by improving co-operation, even when we examine bilateral trustʺ … stronger rule of law specialize in industries that rely on decentralization and allow more efficient firms to grow in scale …
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Economists have long puzzled over the astounding differences in productivity between firms and countries. For example, looking at disaggregated data on U.S. manufacturing industries, Syverson (2004a) found that plants at the 90th percentile produced four times as much as the plant in the 10th...
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