This paper estimates a dynamic general equilibrium model of entry, exit, and endogenous productivity growth …. Productivity is endogenous both at the industry level (firms enter and exit) and at the firm level (firms invest in productivity …-enhancing activities). The focus of the paper is on two activities that make productivity-enhancing investments more attractive, namely …

productivity growth. On average, no productivity improvements in labour have been recorded since independence. With an investment … to GDP ratio of only 13 per cent during the past decade, significantly higher productivity growth and investment will be … structural reforms and stronger institutions,higher rates of productivity growth will be hard to achieve …

This article explores the dynamics of market selection by investigating of the relationships linking productivity … that productivity variations, rather than relative levels, are the dominant productivity-related determinant of firm growth …