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Does finance facilitate efficient allocation of resources? Our aim in this paper is to find out whether increases in private and public indebtedness affect capital misallocation, which is measured as the dispersion in the return to capital across firms in different industries. For this, we use a...
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Over the past decades, East Asia and Pacific's productivity has been gradually catching up with the frontier (the … United States), with China leading the pack. Productivity growth has been driven by sustained within-sector productivity … growth. Reallocation of labor to sectors with higher productivity, such as industry and services, also contributed to …
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One of the key determinants of potential growth are productivity gains. Total factor productivity (TFP) differences are …: the aggregate productivity loss from microeconomic distortions that prevent factors of production from being allocated to … key driver of productivity gains. Since distortions preventing misallocation can be driven by institutional obstacles …
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productivity leaving aside other effects that arise through the market selection process. Additionally, most studies have focused … Chile to analyze how trade affects aggregate productivity through the process of resource reallocation and to explore not …
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