our key results to alternative data sets. -- China ; investment ; growth ; productivity ; capital market distortions … role of rising rates of investment. Because labor reallocation across sectors, TFP growth at the sector level and … investment are all inter-related, simple growth decompositions that are often used in the literature are not appropriate for …

misallocation model. Entry productivity investment and factor misallocation contribute equally to the reduction in output, whereas …We consider a tractable model of heterogeneous production units that features endogenous entry and productivity … investment to assess the quantitative impact of policy distortions on aggregate output and establishment size. Relative to the …

misallocation model. Entry productivity investment and factor misallocation contribute equally to the reduction in output, whereas …We consider a tractable model of heterogeneous production units that features endogenous entry and productivity … investment to assess the quantitative impact of policy distortions on aggregate output and establishment size. Relative to the …

productivity of labor. Therefore, a reallocation of labor from a sector with higher output per worker to a sector with lower output … per worker may be productivity enhancing …

We propose a theory linking imperfect information to resource misallocation and hence to aggregate productivity and … US, China, and India reveals substantial losses in productivity and output due to the informational friction. Our … estimates for these losses range from 7-10% for productivity and 10-14% for output in China and India, and are smaller, though …