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

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 unit...

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Detalles Bibliográficos
Autores: García-Santana, Manuel, Ramos, Roberto
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2015
País:España
Institución:Universitat Pompeu Fabra
Repositorio:Repositorio Digital de la UPF
OAI Identifier:oai:repositori.upf.edu:10230/44919
Acceso en línea:http://hdl.handle.net/10230/44919
http://dx.doi.org/10.1007/s13209-015-0129-y
Access Level:acceso abierto
Palabra clave:TFP
Plant size distribution
Economic distortions
Descripción
Sumario: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 cross-country relationship between the size distribution and aggregate productivity. These results are consistent with a large recent literature on misallocation of resources across firms.