Productivity, Innovation and Growth in Sri Lanka : An Empirical Investigation

This study investigates the impact of key business environment indicators on productivity, innovation, and growth in Sri Lanka through a cluster-level productivity analysis, a firm-level total factor productivity analysis, and a firm-level innovati...

Full description

Bibliographic Details
Main Authors: Dutz, Mark A., O'Connell, Stephen D.
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2013
Subjects:
GDP
WEB
Online Access:http://documents.worldbank.org/curated/en/2013/02/17211806/productivity-innovation-growth-sri-lanka-empirical-investigation
http://hdl.handle.net/10986/13155
id okr-10986-13155
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCESS TO INFORMATION
ACCESS TO THE INTERNET
ACCOUNTING
AGRICULTURE
ALLOCATIVE EFFICIENCY
BEST PRACTICES
BUSINESS ENVIRONMENT
BUSINESS OPERATIONS
BUSINESS PROCESS
BUSINESS PROCESSES
BUSINESS REGULATION
BUSINESS SERVICES
BUYERS
CAPABILITIES
CAPABILITY
CAPACITY UTILIZATION
CAPITAL ASSET
CAPITAL EXPENDITURE
CAPITAL GOODS
CAPITAL INVESTMENT
COMPARATIVE ANALYSIS
COMPETENCIES
COMPETITIVENESS
COMPETITORS
CONFIDENTIALITY
CONNECTIVITY
CONSULTING FIRMS
CUSTOMS
DATA COLLECTION
DEBT
DEVELOPMENT POLICY
DISCUSSIONS
DISTORTED INCENTIVES
DRIVERS
E-MAIL
ECONOMIC GROWTH
ELASTICITY
ELECTRICITY
EMPIRICAL EVIDENCE
EMPLOYMENT
EMPLOYMENT GROWTH
ENTERPRISE SURVEY
ENTERPRISE SURVEYS
EQUIPMENT
EXPLORATION
EXPORT MARKETS
EXPORT OPPORTUNITIES
EXPORTS
EXTERNAL KNOWLEDGE
FINANCIAL SYSTEM
FOREIGN COMPETITION
GDP
GDP PER CAPITA
GLOBAL KNOWLEDGE
GLOBALIZATION
GROWTH PATH
GROWTH POTENTIAL
GROWTH RATE
GROWTH STRATEGIES
GROWTH THEORY
HUMAN CAPITAL
IDEAS
INCOME LEVELS
INDUSTRY PRODUCTIVITY
INEFFICIENCY
INNOVATION
INNOVATION POLICY
INNOVATIONS
INSPECTIONS
INTANGIBLE ASSETS
INTEGRATION
INTEREST RATE
INTEREST RATES
KNOWLEDGE ASSETS
KNOWLEDGE FLOWS
LABOR MARKETS
LABOR PRODUCTIVITY
LEARNING
LICENSE
LICENSES
MANAGERIAL SKILLS
MANUFACTURING
MARKET COMPETITION
MARKET ECONOMY
MARKET POWER
MARKET SHARES
MARKETING
MATERIAL
MEDIUM ENTERPRISES
METRICS
MIDDLE INCOME COUNTRIES
MOBILE PHONES
MOTIVATION
NATIONAL INCOME
NETWORKS
NEW TECHNOLOGIES
NEW TECHNOLOGY
OPEN ACCESS
ORGANIZATIONAL INNOVATION
ORGANIZATIONAL INNOVATIONS
OUTPUTS
OVERVALUATION
PATENTS
PER CAPITA INCOME
PER CAPITA INCOMES
PHYSICAL INFRASTRUCTURE
POLICY MAKERS
POSITIVE EXTERNALITIES
PRIVATE INVESTMENT
PRIVATE SECTOR
PRODUCT DEVELOPMENT
PRODUCT INNOVATION
PRODUCTION FUNCTION
PRODUCTIVITY GROWTH
PURCHASING POWER
R&D
REAL GDP
REGULATORY ENVIRONMENT
RELIABILITY
RENT SEEKING
RESULT
RESULTS
STRUCTURAL CHANGE
SUNK COSTS
SUSTAINABLE GROWTH
TAX RATES
TECHNOLOGICAL ADVANCES
TECHNOLOGY TRANSFER
TECHNOLOGY TRANSFERS
TELEPHONE
TELEPHONE LINES
THEORETICAL MODELS
TIME PERIOD
TOTAL FACTOR PRODUCTIVITY
TOTAL FACTOR PRODUCTIVITY ANALYSIS
TOTAL OUTPUT
VALUE ADDED
VALUE CHAINS
WAGES
WEALTH
WEALTH CREATION
WEB
WORKFORCE
spellingShingle ACCESS TO INFORMATION
ACCESS TO THE INTERNET
ACCOUNTING
AGRICULTURE
ALLOCATIVE EFFICIENCY
BEST PRACTICES
BUSINESS ENVIRONMENT
BUSINESS OPERATIONS
BUSINESS PROCESS
BUSINESS PROCESSES
BUSINESS REGULATION
BUSINESS SERVICES
BUYERS
CAPABILITIES
CAPABILITY
CAPACITY UTILIZATION
CAPITAL ASSET
CAPITAL EXPENDITURE
CAPITAL GOODS
CAPITAL INVESTMENT
COMPARATIVE ANALYSIS
COMPETENCIES
COMPETITIVENESS
COMPETITORS
CONFIDENTIALITY
CONNECTIVITY
CONSULTING FIRMS
CUSTOMS
DATA COLLECTION
DEBT
DEVELOPMENT POLICY
DISCUSSIONS
DISTORTED INCENTIVES
DRIVERS
E-MAIL
ECONOMIC GROWTH
ELASTICITY
ELECTRICITY
EMPIRICAL EVIDENCE
EMPLOYMENT
EMPLOYMENT GROWTH
ENTERPRISE SURVEY
ENTERPRISE SURVEYS
EQUIPMENT
EXPLORATION
EXPORT MARKETS
EXPORT OPPORTUNITIES
EXPORTS
EXTERNAL KNOWLEDGE
FINANCIAL SYSTEM
FOREIGN COMPETITION
GDP
GDP PER CAPITA
GLOBAL KNOWLEDGE
GLOBALIZATION
GROWTH PATH
GROWTH POTENTIAL
GROWTH RATE
GROWTH STRATEGIES
GROWTH THEORY
HUMAN CAPITAL
IDEAS
INCOME LEVELS
INDUSTRY PRODUCTIVITY
INEFFICIENCY
INNOVATION
INNOVATION POLICY
INNOVATIONS
INSPECTIONS
INTANGIBLE ASSETS
INTEGRATION
INTEREST RATE
INTEREST RATES
KNOWLEDGE ASSETS
KNOWLEDGE FLOWS
LABOR MARKETS
LABOR PRODUCTIVITY
LEARNING
LICENSE
LICENSES
MANAGERIAL SKILLS
MANUFACTURING
MARKET COMPETITION
MARKET ECONOMY
MARKET POWER
MARKET SHARES
MARKETING
MATERIAL
MEDIUM ENTERPRISES
METRICS
MIDDLE INCOME COUNTRIES
MOBILE PHONES
MOTIVATION
NATIONAL INCOME
NETWORKS
NEW TECHNOLOGIES
NEW TECHNOLOGY
OPEN ACCESS
ORGANIZATIONAL INNOVATION
ORGANIZATIONAL INNOVATIONS
OUTPUTS
OVERVALUATION
PATENTS
PER CAPITA INCOME
PER CAPITA INCOMES
PHYSICAL INFRASTRUCTURE
POLICY MAKERS
POSITIVE EXTERNALITIES
PRIVATE INVESTMENT
PRIVATE SECTOR
PRODUCT DEVELOPMENT
PRODUCT INNOVATION
PRODUCTION FUNCTION
PRODUCTIVITY GROWTH
PURCHASING POWER
R&D
REAL GDP
REGULATORY ENVIRONMENT
RELIABILITY
RENT SEEKING
RESULT
RESULTS
STRUCTURAL CHANGE
SUNK COSTS
SUSTAINABLE GROWTH
TAX RATES
TECHNOLOGICAL ADVANCES
TECHNOLOGY TRANSFER
TECHNOLOGY TRANSFERS
TELEPHONE
TELEPHONE LINES
THEORETICAL MODELS
TIME PERIOD
TOTAL FACTOR PRODUCTIVITY
TOTAL FACTOR PRODUCTIVITY ANALYSIS
TOTAL OUTPUT
VALUE ADDED
VALUE CHAINS
WAGES
WEALTH
WEALTH CREATION
WEB
WORKFORCE
Dutz, Mark A.
O'Connell, Stephen D.
Productivity, Innovation and Growth in Sri Lanka : An Empirical Investigation
geographic_facet South Asia
Sri Lanka
relation Policy Research Working Paper;No. 6354
description This study investigates the impact of key business environment indicators on productivity, innovation, and growth in Sri Lanka through a cluster-level productivity analysis, a firm-level total factor productivity analysis, and a firm-level innovation analysis. For the cluster-level productivity analysis (as measured by output and value added per worker), it combines two established data sources in a novel way by importing average 'industry-size-location' cluster-level business environment variables from the World Bank Enterprise Survey to the comprehensive Sri Lanka Census of Industry productivity data available for similar clusters of enterprises. For the firm-level total factor productivity analysis, it compares data from the 2011 World Bank Enterprise Survey with those from 2004. For the firm-level innovation analysis, it compares findings from the 2011 World Bank Enterprise Survey with a representative sample of enterprises collected as part of the Sri Lanka Longitudinal Survey of Enterprises. The empirical findings highlight the importance -- for cluster-level productivity, firm-level total factor productivity, and innovation -- of connectivity to global knowledge (reflected by one or more of export participation, directly imported inputs, foreign ownership, and use of the internet), availability of skills, access to finance, and competition. The paper also presents evidence, under the assumption that the samples are statistically representative, that both allocative and average technical efficiency have improved, with allocative efficiency increasing roughly four-fold between 2003 and 2010, and accounting for the overwhelming share of the aggregate increase in total factor productivity over this time period. Most of the improvement in allocative efficiency has occurred among larger firms, and in large rather than small cities.
format Publications & Research :: Policy Research Working Paper
author Dutz, Mark A.
O'Connell, Stephen D.
author_facet Dutz, Mark A.
O'Connell, Stephen D.
author_sort Dutz, Mark A.
title Productivity, Innovation and Growth in Sri Lanka : An Empirical Investigation
title_short Productivity, Innovation and Growth in Sri Lanka : An Empirical Investigation
title_full Productivity, Innovation and Growth in Sri Lanka : An Empirical Investigation
title_fullStr Productivity, Innovation and Growth in Sri Lanka : An Empirical Investigation
title_full_unstemmed Productivity, Innovation and Growth in Sri Lanka : An Empirical Investigation
title_sort productivity, innovation and growth in sri lanka : an empirical investigation
publisher World Bank, Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2013/02/17211806/productivity-innovation-growth-sri-lanka-empirical-investigation
http://hdl.handle.net/10986/13155
_version_ 1764422820945723392
spelling okr-10986-131552021-04-23T14:03:07Z Productivity, Innovation and Growth in Sri Lanka : An Empirical Investigation Dutz, Mark A. O'Connell, Stephen D. ACCESS TO INFORMATION ACCESS TO THE INTERNET ACCOUNTING AGRICULTURE ALLOCATIVE EFFICIENCY BEST PRACTICES BUSINESS ENVIRONMENT BUSINESS OPERATIONS BUSINESS PROCESS BUSINESS PROCESSES BUSINESS REGULATION BUSINESS SERVICES BUYERS CAPABILITIES CAPABILITY CAPACITY UTILIZATION CAPITAL ASSET CAPITAL EXPENDITURE CAPITAL GOODS CAPITAL INVESTMENT COMPARATIVE ANALYSIS COMPETENCIES COMPETITIVENESS COMPETITORS CONFIDENTIALITY CONNECTIVITY CONSULTING FIRMS CUSTOMS DATA COLLECTION DEBT DEVELOPMENT POLICY DISCUSSIONS DISTORTED INCENTIVES DRIVERS E-MAIL ECONOMIC GROWTH ELASTICITY ELECTRICITY EMPIRICAL EVIDENCE EMPLOYMENT EMPLOYMENT GROWTH ENTERPRISE SURVEY ENTERPRISE SURVEYS EQUIPMENT EXPLORATION EXPORT MARKETS EXPORT OPPORTUNITIES EXPORTS EXTERNAL KNOWLEDGE FINANCIAL SYSTEM FOREIGN COMPETITION GDP GDP PER CAPITA GLOBAL KNOWLEDGE GLOBALIZATION GROWTH PATH GROWTH POTENTIAL GROWTH RATE GROWTH STRATEGIES GROWTH THEORY HUMAN CAPITAL IDEAS INCOME LEVELS INDUSTRY PRODUCTIVITY INEFFICIENCY INNOVATION INNOVATION POLICY INNOVATIONS INSPECTIONS INTANGIBLE ASSETS INTEGRATION INTEREST RATE INTEREST RATES KNOWLEDGE ASSETS KNOWLEDGE FLOWS LABOR MARKETS LABOR PRODUCTIVITY LEARNING LICENSE LICENSES MANAGERIAL SKILLS MANUFACTURING MARKET COMPETITION MARKET ECONOMY MARKET POWER MARKET SHARES MARKETING MATERIAL MEDIUM ENTERPRISES METRICS MIDDLE INCOME COUNTRIES MOBILE PHONES MOTIVATION NATIONAL INCOME NETWORKS NEW TECHNOLOGIES NEW TECHNOLOGY OPEN ACCESS ORGANIZATIONAL INNOVATION ORGANIZATIONAL INNOVATIONS OUTPUTS OVERVALUATION PATENTS PER CAPITA INCOME PER CAPITA INCOMES PHYSICAL INFRASTRUCTURE POLICY MAKERS POSITIVE EXTERNALITIES PRIVATE INVESTMENT PRIVATE SECTOR PRODUCT DEVELOPMENT PRODUCT INNOVATION PRODUCTION FUNCTION PRODUCTIVITY GROWTH PURCHASING POWER R&D REAL GDP REGULATORY ENVIRONMENT RELIABILITY RENT SEEKING RESULT RESULTS STRUCTURAL CHANGE SUNK COSTS SUSTAINABLE GROWTH TAX RATES TECHNOLOGICAL ADVANCES TECHNOLOGY TRANSFER TECHNOLOGY TRANSFERS TELEPHONE TELEPHONE LINES THEORETICAL MODELS TIME PERIOD TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY ANALYSIS TOTAL OUTPUT VALUE ADDED VALUE CHAINS WAGES WEALTH WEALTH CREATION WEB WORKFORCE This study investigates the impact of key business environment indicators on productivity, innovation, and growth in Sri Lanka through a cluster-level productivity analysis, a firm-level total factor productivity analysis, and a firm-level innovation analysis. For the cluster-level productivity analysis (as measured by output and value added per worker), it combines two established data sources in a novel way by importing average 'industry-size-location' cluster-level business environment variables from the World Bank Enterprise Survey to the comprehensive Sri Lanka Census of Industry productivity data available for similar clusters of enterprises. For the firm-level total factor productivity analysis, it compares data from the 2011 World Bank Enterprise Survey with those from 2004. For the firm-level innovation analysis, it compares findings from the 2011 World Bank Enterprise Survey with a representative sample of enterprises collected as part of the Sri Lanka Longitudinal Survey of Enterprises. The empirical findings highlight the importance -- for cluster-level productivity, firm-level total factor productivity, and innovation -- of connectivity to global knowledge (reflected by one or more of export participation, directly imported inputs, foreign ownership, and use of the internet), availability of skills, access to finance, and competition. The paper also presents evidence, under the assumption that the samples are statistically representative, that both allocative and average technical efficiency have improved, with allocative efficiency increasing roughly four-fold between 2003 and 2010, and accounting for the overwhelming share of the aggregate increase in total factor productivity over this time period. Most of the improvement in allocative efficiency has occurred among larger firms, and in large rather than small cities. 2013-04-11T18:05:58Z 2013-04-11T18:05:58Z 2013-02 http://documents.worldbank.org/curated/en/2013/02/17211806/productivity-innovation-growth-sri-lanka-empirical-investigation http://hdl.handle.net/10986/13155 English en_US Policy Research Working Paper;No. 6354 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia Sri Lanka