Why do Firms in Developing Countries Have Low Productivity?
11 Pages Posted: 8 Jan 2010
Date Written: January 8, 2010
The productivity of firms in developing countries appears to be extremely low. Prior work, such as that summarized in James Tybout (2000) and World Bank (2004), has highlighted a set of issues around infrastructure, informality, regulations, trade policies, and human capital that reduce the productivity of firms in developing countries. In this short article we want to focus instead on three other areas which recent research has emphasized: management practices, financial constraints and the delegation of decision making.
Keywords: productivity, development firms
JEL Classification: L2, M2, O14, O32, O33
Suggested Citation: Suggested Citation