Distortions and the size distribution of plants: Evidence from cross-country data

Artikel

We study the relationship between economic distortions and the size distribution of plants using comparable plant-level data across 104 developing countries. Our main result is to show that, other things equal, countries with larger economic distortions allocate more labor to small unproductive units. By decomposing the business environment into different type of distortions, we find that poor access to financial credit is the one driving our results.We also show that there exists a significant crosscountry relationship between the size distribution and aggregate productivity. These results are consistent with a large recent literature on misallocation of resources across firms.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: SERIEs - Journal of the Spanish Economic Association ; ISSN: 1869-4195 ; Volume: 6 ; Year: 2015 ; Issue: 3 ; Pages: 279-312 ; Heidelberg: Springer

Classification and Topics

• Classification: Wirtschaft ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Enterprise Policy ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
• Subject: TFP ; Plant size distribution ; Economic distortions

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): García-Santana, Manuel ; Ramos, Roberto
• Event: Veröffentlichung
• (who): Springer
• (where): Heidelberg
• (when): 2015

Further information

• DOI: doi:10.1007/s13209-015-0129-y
• Handle: http://hdl.handle.net/10419/158542
• Last update: 10.03.2025, 11:43 AM CET