Total factor productivity (TFP) differs greatly across countries. In this paper, I provide a novel rationalization for …

hand in hand with a reduction in productivity. Another channel would be the concentration of economic activity in sectors … other sectors; further, good governance also boosts relatively more labor productivity in more complex subsectors of … manufacturing. Both effects are strongest among countries whose labor productivity ranks in the second and third quartiles of the …

output and average productivity, with stronger positive productivity effects for newly imported intermediate inputs. However …