Large estimates of the benefits of microeconomic reform have been put forward in official studies. By contrast, Quiggin (1997) concludes that benefits of microeconomic reforms have been modest. A key area of disagreement relates to the claim that increased competition leads to increases in...

There is a growing number of studies that investigate the effect of trade liberalization on productivity and nearly all assume that trade policy is independently determined of productivity, hence it is exogenous. I show that this assumption is generally invalid both theoretically and...

Ample evidence from micro data suggests that productivity at establishment level is dominated by idiosyncratic factors. The productivity differences across establishments are very large and persistent even with the narrowest definition of industries. There is an attempt to identify sources of...