The Dynamics of Development : Innovation and Reallocation

This paper proposes a quantitative model of endogenous firm dynamics to study growth acceleration episodes triggered by reforms. It finds that reversals of entry distortions lead to persistent growth in TFP and declining average firm size, as in the experience of successful post-communist transi...

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Main Authors:	Buera, Francisco J., Fattal-Jaef, Roberto N.
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2018
Subjects:	TRANSITION DYNAMICS MISALLOCATION INNOVATION FIRM PRODUCTIVITY STRUCTURAL TRANSFORMATION GROWTH ACCELERATION
Online Access:	http://documents.worldbank.org/curated/en/273571530327069374/The-dynamics-of-development-innovation-and-reallocation http://hdl.handle.net/10986/29978

id	okr-10986-29978
recordtype	oai_dc
spelling	okr-10986-299782022-01-31T18:22:02Z The Dynamics of Development : Innovation and Reallocation Buera, Francisco J. Fattal-Jaef, Roberto N. TRANSITION DYNAMICS MISALLOCATION INNOVATION FIRM PRODUCTIVITY STRUCTURAL TRANSFORMATION GROWTH ACCELERATION This paper proposes a quantitative model of endogenous firm dynamics to study growth acceleration episodes triggered by reforms. It finds that reversals of entry distortions lead to persistent growth in TFP and declining average firm size, as in the experience of successful post-communist transitions. Removing idiosyncratic distortions results in a more protracted path of TFP and a rising average firm size, as in non-communist growth accelerations. When calibrating the reforms to China’s liberalization, the model accounts for one-third of the observed growth in TFP, while matching the dynamics of average firm size and income inequality.. 2018-07-13T19:42:23Z 2018-07-13T19:42:23Z 2018-06 Working Paper http://documents.worldbank.org/curated/en/273571530327069374/The-dynamics-of-development-innovation-and-reallocation http://hdl.handle.net/10986/29978 English Policy Research Working Paper;No. 8505 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Eastern Europe Chile China Russian Federation
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	TRANSITION DYNAMICS MISALLOCATION INNOVATION FIRM PRODUCTIVITY STRUCTURAL TRANSFORMATION GROWTH ACCELERATION
spellingShingle	TRANSITION DYNAMICS MISALLOCATION INNOVATION FIRM PRODUCTIVITY STRUCTURAL TRANSFORMATION GROWTH ACCELERATION Buera, Francisco J. Fattal-Jaef, Roberto N. The Dynamics of Development : Innovation and Reallocation
geographic_facet	Latin America & Caribbean Eastern Europe Chile China Russian Federation
relation	Policy Research Working Paper;No. 8505
description	This paper proposes a quantitative model of endogenous firm dynamics to study growth acceleration episodes triggered by reforms. It finds that reversals of entry distortions lead to persistent growth in TFP and declining average firm size, as in the experience of successful post-communist transitions. Removing idiosyncratic distortions results in a more protracted path of TFP and a rising average firm size, as in non-communist growth accelerations. When calibrating the reforms to China’s liberalization, the model accounts for one-third of the observed growth in TFP, while matching the dynamics of average firm size and income inequality..
format	Working Paper
author	Buera, Francisco J. Fattal-Jaef, Roberto N.
author_facet	Buera, Francisco J. Fattal-Jaef, Roberto N.
author_sort	Buera, Francisco J.
title	The Dynamics of Development : Innovation and Reallocation
title_short	The Dynamics of Development : Innovation and Reallocation
title_full	The Dynamics of Development : Innovation and Reallocation
title_fullStr	The Dynamics of Development : Innovation and Reallocation
title_full_unstemmed	The Dynamics of Development : Innovation and Reallocation
title_sort	dynamics of development : innovation and reallocation
publisher	World Bank, Washington, DC
publishDate	2018
url	http://documents.worldbank.org/curated/en/273571530327069374/The-dynamics-of-development-innovation-and-reallocation http://hdl.handle.net/10986/29978
_version_	1764470969118752768

The Dynamics of Development : Innovation and Reallocation

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