Economic Liberalization and Productivity Growth: Further Evidence from Bangladesh

Posted: 13 Aug 2008

See all articles by Ruhul Salim

Ruhul Salim

Curtin University - Curtin Business School; Curtin University - Centre for Research in Applied Economics

Date Written: August 13, 2003

Abstract

The impact of economic liberalization reforms on the productive performances of manufacturing firms remains a contentious issue in the literature. This paper attempts to contribute to the debate by empirically estimating productivity growth of Bangladesh food manufacturing using firm level data before and after reform. Empirical results show that the share of output growth was accounted for by input growth in most sectors of this industry. In some sectors, the estimated rate of total factor productivity (TFP) growth is negligible or even negative. Decomposition of the TFP growth shows that technological progress plays a significant role in TFP growth across firms within the sub-sectors of this industry. Empirical results also show that the relative contribution of capacity realization to TFP growth is not substantial in inhibiting the industry's high and sustained growth. These dismal performances indicate that the industries responded a little to the implementation of economic reforms.

Suggested Citation

Salim, Ruhul, Economic Liberalization and Productivity Growth: Further Evidence from Bangladesh (August 13, 2003). Oxford Development Studies, Vol. 31, No. 1, 2003, Available at SSRN: https://ssrn.com/abstract=1222422

Ruhul Salim (Contact Author)

Curtin University - Curtin Business School ( email )

GPO Box U1987
Perth, WA WA
Australia

Curtin University - Centre for Research in Applied Economics ( email )

GPO Box U1987
Perth, Western Australia 6845
Australia

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