The authors apply the analysis of Hsieh and Klenow (2009) to assess the degree of resource misallocation in the Republic of Korea manufacturing sector from 1982 to 2007. They find improvement in the aggregate allocative efficiency during the first decade and a strong reversal after 1992. This...

This paper analyzes firm level adjustment of the product mix and its implications for aggregate output growth. Using firm level panel data from Ethiopian manufacturing during the period 1996-2007, it shows that about 30% of firms adjust their "extensive margin" annually by adding and/or dropping...

The paper examines the effects of foreign direct investment (FDI) on a domestic firm's productivity in Vietnamese manufacturing industries. In contrast with most previous studies, the paper focuses on the FDI spillover effects taking place through both horizontal and vertical linkages and...

Misallocation of labour and capital can greatly reduce aggregate productivity. In this study, we use tax administrative data to examine the extent of resource misallocation in the South African context. In addition, we zoom in on how different government incentives affect the allocation (or...