Why Do Firms in Developing Countries Have Low Productivity?

Abstract

The productivity of firms in developing countries appears to be extremely low. Prior work has highlighted a set of issues around infrastructure, informality, regulations, trade policies, and human capital that reduce the productivity of firms in developing countries. This short article focuses instead on three other areas which recent research has emphasized: management practices, financial constraints, and the delegation of decision making.

Citation

Bloom, N.; Mahajan, A.; McKenzie, D.; Roberts, J. Why Do Firms in Developing Countries Have Low Productivity? American Economic Review (2010) 100 (2) 619-623. [DOI: 10.1257/aer.100.2.619]

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