On the Allocation of Resources in Developing East Asia and Pacific
Over the past decades, East Asia and Pacific's productivity has been gradually catching up with the frontier (the United States), with China leading the pack. Productivity growth has been driven by sustained within-sector productivity growth....
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/467851541014678219/On-the-Allocation-of-Resources-in-Developing-East-Asia-and-Pacific http://hdl.handle.net/10986/30655 |
| Summary: | Over the past decades, East Asia and
Pacific's productivity has been gradually catching up
with the frontier (the United States), with China leading
the pack. Productivity growth has been driven by sustained
within-sector productivity growth. Reallocation of labor to
sectors with higher productivity, such as industry and
services, also contributed to productivity improvements.
Nevertheless, resource misallocation remains. Firm-level
evidence from four East Asia and Pacific countries
(Indonesia, Malaysia, the Philippines, and Vietnam) suggests
that resource misallocation across firms within a sector is
large, albeit declining over time. Private domestic firms
and firms with higher productivity face larger distortions. |
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