Working Paper
Tariffs, productivity, and resource misallocation
An often-neglected potential negative consequence of tariffs is the impact they may have on the misallocation of factor inputs. Trade protection can provide space for domestic firms to increase prices and mark-ups, allowing low-productivity firms to...
Blog
Conflict-prone countries are not doomed to an eternal trap
The situation of Afghanistan has drawn a picture of a poor, conflict-prone, doomed country. But this does not have to be the case. We have examples of...
Working Paper
Good business practices improve productivity in Myanmar’s manufacturing sector
We look into the relationship between business practices and enterprise productivity using panel data with matched employer and employee information from Myanmar. The data show that micro, small, and medium-size enterprises in Myanmar typically do...
Working Paper
The Financial Deepening-Productivity Nexus in China
The financial intermediation-growth nexus is a widely studied topic in the literature of development economics. Deepening financial intermediation may promote economic growth by mobilizing more investments, and lifting returns to financial resources...
Working Paper
How good are manufacturing jobs in Myanmar?
The quality of people’s jobs is a fundamental determinant of their well-being, and judging the state of a labour market on the basis of job quantity alone delivers a very partial picture. This study is an attempt to place the spotlight on the working...
Working Paper
Digital technology and productivity of informal enterprises
The lingering policy dilemma facing many governments in sub-Saharan Africa in recent years is what can be done in the short to medium term to boost the output and incomes of individuals and enterprises in the informal sector, given the size and...
Policy Brief
The economic gains of reducing the employment gender gap in Morocco
Middle East and North Africa (MENA) countries, including Morocco, currently record the lowest rates of female labour force participation (FLFP) in the world. These rates — between 20-30% in 2019 — appear substantially low in comparison to Western...
Working Paper
Formalization and productivity
Using a firm-level panel dataset on private small- and medium-sized enterprises (SMEs) in Viet Nam’s manufacturing sector, this paper examines productivity dynamics of formal and informal firms. We decompose productivity changes into changes within...
Working Paper
Exporters and global value chain participation
Using the South African Revenue Service and National Treasury firm-level panel data for 2009–17, this paper investigates how global value chain-related trade affects the export performance of manufacturing firms in South Africa. In particular, the...
Technical Note
Total factor productivity in South African manufacturing firms 2010–17
We update Kreuser and Newman’s (2018) total factor productivity estimates for the South African manufacturing sector using administrative data from 2009–17. We use standard implementations of the Ackerberg et al. (2015) and Wooldridge (2009)...
Working Paper
The relative neglect of agriculture in Mozambique
This paper explores agricultural performance of Mozambique, its institutional weaknesses, and the underlying factors that underpin an unsatisfactory performance during many decades. We point to the role of systemic political instability and violence...
Blog
Youth Unemployment in the Arab World: What Do We know? What is the Way Forward?
by
Imed Drine
June 2012
Imed Drine Many observers see youth unemployment as the major reason behind the recent popular uprisings in a number of Arab countries. Increasing...
Working Paper
Market Size, Linkages, and Productivity
One account of spatial concentration focuses on productivity advantages arising from market size. We investigate this for 40 regions of Japan. Our results identify important effects of a region’s own size, as well as cost linkages between producers...
Working Paper
Impact of Macroeconomic Factors on Total Factor Productivity in Sub-Saharan African Countries
This study explores the effects of macroeconomic factors on total factor productivity (TFP) in 34 sub-Saharan African countries for the period 1980-2002. The econometric analysis shows that external debt is negatively and significantly related to TFP...
Working Paper
The New Economy in Europe, 1992-2001
Despite the fast catching-up in ICT diffusion experienced by most EU countries in the last few years, information technologies have so far delivered little productivity gains in Europe. In the second half of the past decade, growth contributions from...
Journal Article
Technology Transfers, Foreign Investment and Productivity Spillovers
This paper explores the relationship between foreign direct investment (FDI) and the productivity of host country domestic firms. We rely on a specially designed survey of over 4000 manufacturing firms in Vietnam, and separate out productivity gains...
Working Paper
Financial Sector Development and Productivity Growth
Recent years have witnessed important structural changes around the world as a result of the globalization process, the creation of new economic blocks and the liberalization of financial sector in many countries. Responding to these changes many...
Working Paper
The Theoretical, Conceptual and Empirical Impact of the Service Economy
This paper offers a critical review of the conventional economic classification, measurement and valuation of output, and related performance indicators, for the service sector. The paper also explores and contrasts long-standing views on the service...
Working Paper
Resource misallocation and total factor productivity
Misallocation of labour and capital can greatly reduce aggregate productivity. In this study, we use tax administrative data to examine the extent of resource misallocation in the South African context. In addition, we zoom in on how different...
Blog
The poorest countries attract few foreign investments
by
Jukka Aronen
March 2024
The share of the least developed countries (LDCs) in global foreign investments is less than one percent. But positive developments have taken place...
Working Paper
Construction productivity and global inequality
Two well established stylized facts of economic development are a strong correlation between investment and income, and large differences in investment rates across countries. Construction is the largest component of investment. This paper examines...
Journal Article
Imports, supply chains and firm productivity
This study explores how competition-induced productivity gains from imports in intermediate producing sectors transmit through the supply chain. Based on firm-level panel data from Vietnam, we show that in addition to the productivity premium...
Working Paper
Scoping Paper on Kenyan Manufacturing
Three major policy regimes, namely import substitution, market liberalization and export promotion have greatly influenced Kenyan industrialization since independence in 1963. Overall, import substitution strategy was successful in establishing some...
Working Paper
The Main Obstacles to Firms’ Growth in Senegal
Productivity gains are the prime engine of economic growth. This paper uses a rich amount of firms’ accounting information from the Single Information Collecting Centre in Senegal over the period 1998-2011. To investigate the two main obstacles to...
Working Paper
The Evolution of Vietnamese Industry
The transfer from an import-substitution to an export-orientation strategy has been in effect in Vietnam since the reform process, Doi Moi, necessitating the reformulation of macroeconomic, trading and sectoral policies. As a result, the industry...
Working Paper
Productivity-Enhancing Manufacturing Clusters
In this paper we explore the extent to which firms experience productivity spillovers from clustering using a rich data source from Vietnam for 2002 to 2007, a period of significant transition. We address issues of simultaneity, self-selection and...
Working Paper
Exporting and Productivity
In this paper, we investigate the relationship between exporting and productivity in the case of Vietnam using an extensive firm level panel dataset for the period 2005-11. We separate out productivity effects of exporting due to self-selection...
Working Paper
Market constraints, misallocation, and productivity in Vietnam agriculture
We examine important changes in agriculture in Vietnam in the context of ongoing structural changes in the economy. We use a household-level panel dataset and a quantitative framework to document the extent and consequences of factor misallocation in...
Working Paper
Natural resources, structural change, and industrial development
This paper traces the role of local content in Zambia’s mining sector in supporting industrialization and economic diversification. It assesses productive linkages and manufacturing competitiveness during import-substitution industrialization and...
Journal Special Issue
The New Economy in Growth and Development
The benefits from the New Economy should accrue as improvements in productivity and economic growth. But while the use of information and communication technology (ICT) seems to have had a substantial impact on the performance of the United States...
Working Paper
The gender gap in firm productivity in Rwanda
Rwanda is one of the countries with the best strategies for women empowerment and gender equality in Africa and globally. Nonetheless, some inequalities exist especially in education attainment. This study investigates the gender gaps in business...
Working Paper
Employment and development in Asia
How have economic development, employment, and labour markets in Asian countries interacted since the publication of Myrdal’s Asian Drama? Myrdal rejected, the western approach to and definition of employment and emphasized the role of ‘informal’...
Working Paper
Computers and Economic Growth in Finland
The effect of computer technology on Finnish economic growth in 1983-96 is examined to shed light into the famous productivity paradox. Using the neoclassical growth accounting framework, the contribution of computer hardware, software and labor to...
Working Paper
Inter- and intra-farm land fragmentation in Vietnam
This paper uses panel data at commune, household, and plot levels to study the causes and effects of agricultural land fragmentation in rural Vietnam. We focus on both inter-farm fragmentation (the division of land into many small farms) and intra...
Working Paper
Information Technology and Economic Growth
This paper explores the impacts of information technology investment on economic growth in a cross-section of 39 countries in the period 1980-95 by applying an explicit model of economic growth, the augmented version of the neoclassical (Solow)...
Journal Special Issue
The New Economy in Europe, 1992–2001
Despite the fast catching up in the diffusion of information and communication technologies (ICT) experienced by most EU countries in the last few years, information technologies have so far delivered few productivity gains in Europe. In the second...
Working Paper
New data, new approaches and new evidence
The Republic of South Africa faces the imperative of escaping economic stagnation. This paper seeks to synthesize results from a series of research efforts, including but not limited to the work conducted under the UNU-WIDER project on ‘Regional...
Journal Article
Structural Transformation, Biased Technological Change and Employment in Vietnam
Employment in Vietnam and elsewhere in Asia has grown more slowly than GDP over the last several decades. This means GDP per capita is rising. Vietnamese policymakers, however, are concerned that ongoing structural transformation is creating too few...
Working Paper
Innovation activity in South Africa
Improvements in productivity are necessary to effectively increase economic growth in the long term. The literature emphasizes a positive correlation between firm-level innovation and productivity gains. It is unsurprising, then, that policy makers...
Working Paper
Growth and Entitlements
In the preceding pages we have attempted a detailed rebuttal of the view that, given the prevailing structural constraints imposed by the unequal distribution of land and other assets, growth through Green Revolution must impoverish, or at best by...
Journal Article
Drivers of productivity in Vietnamese SMEs: the role of management standards and innovation
Using a rich panel dataset of small and medium scale manufacturing enterprises (SMEs) active in the manufacturing sector in Viet Nam, this paper investigates the drivers of firm productivity, focusing on the role played by international management...
Working Paper
Total factor productivity in South African manufacturing firms
The manufacturing sector is an important source of productivity growth and exports. Manufacturing firms are generally more productive than firms in the agricultural or services sectors and are an important source of job creation. Little is known...
Working Paper
New Economy in Growth and Development
The benefits from the New Economy should accrue as improvements in productivity and economic growth. But while the use of information and communication technology seems to have had a substantial impact on the performance of the United States economy...
Working Paper
E-business and Export Behaviour
The paper identifies and analyses the factors that influenced the export performance of firms in the post-liberalization era of the Indian economy. The study is based on primary data collected from fifty-one firms located in the national capital...
Working Paper
The 'New Economy' and Economic Growth in Transition Economies
The contribution of the ‘new economy’ to economic growth in developing countries has so far been minimal. Despite the recent hype, the ‘old economy’ will for long be the fundamental force behind economic growth in transition economies. Nonetheless...