Growth of the Korean economy has been sluggish, and this situation is more pronounced in the service sector. We argue …-sector misallocations at the sectoral level are closely correlated with the lower growth rate of sectoral real value added. Again, this is … mainly observed in the service sector, but not in the manufacturing sector. Misallocations of other resources, labor and the …

spillovers on firm-level productivity are extensively studied in applied work, but not in the context of resource misallocation …. We establish that, in the presence of spillovers, efficient resource allocation requires that more productive firms face … overestimated when spillovers are ignored. Output losses due to capital distortions dominate those from labour and R&D inputs …

-level distortions would increase manufacturing productivity in Colombia and compare it with the United States. We find that such a … reallocation would increase manufacturing Total Factor Productivity (TFP) in Colombia around 15% more than in the United States in … our baseline calibration. We find that distortions have been increasing over time. Productivity gains are larger if we use …