I study the relation between corporate diversification and labor productivity in a sample of over 600,000 firms from 89 … countries. Across the entire sample, greater diversification is associated with significantly lower labor productivity. Contrary … to theories emphasizing the inefficient use of labor in diversified firms, the negative relation between diversification …

Several studies have documented a negative relationship between democracy and volatility. The latter is usually … institutions, macroeconomic policies and financial development, we find that democracy is the most robust predictor of a country … entry for new firms. This leads to less sectoral diversification: fewer sectors are operated but more resources are …

This paper examines how democracy affects long-run growth by influencing the quality of governance. Empirical evidence … countries. A general equilibrium, endogenous growth model is then built to show how a governance improving democracy raises … showing that democracy is in fact a significant determinant of total factor productivity (TFP) growth between 1960 and 1990 in …