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We argue that greater misallocation is a key driver of the worse management practices in Mexico compared to the US. These management practices are strongly associated with higher productivity, growth, trade, and innovation. One indicator of greater misallocation in Mexico is the weaker...
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: competition, business environment, learning spillovers and human capital. Collectively, these drivers account for about a third of …
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whether greater product market competition increases decentralization. For example, tougher competition may make local manager … competitiveness of product markets, one explanation for the trend towards decentralization could be increased competition. Of course … find that competition does indeed seem to foster greater decentralization …
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