Micro Efficiency and Macro Growth
This paper is about micro foundations of productivity and growth. There are several studies on productivity for advanced economies but relatively few for developing countries. Using data from the investment climate surveys of the World Bank, estima...
| Main Authors: | , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
|
| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100412113736 http://hdl.handle.net/10986/3754 |
| id |
okr-10986-3754 |
|---|---|
| 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 |
| topic |
ABSOLUTE VALUE AGGREGATE LEVEL AGRICULTURE ALLOCATIVE EFFICIENCY AVERAGE GROWTH AVERAGE GROWTH RATE AVERAGE LEVEL BANKRUPTCY BEST PRACTICES BOOK VALUE BUSINESSES CAPITAL ACCUMULATION CAPITAL STOCK CAPITAL TIMES COMPARATIVE ANALYSIS COMPUTERS CONSTANT RETURNS CONSTANT RETURNS TO SCALE COUNTRY REGRESSIONS CROSS COUNTRY CUSTOMS DATA ANALYSIS DATA AVAILABILITY DAY-TO-DAY OPERATIONS DEPENDENT VARIABLE DETERMINANTS OF GROWTH DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT INDICATORS DISAGGREGATED LEVEL DOMESTIC MARKETS ECONOMIC ACTIVITY ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC PERFORMANCE ECONOMIC STUDIES ECONOMIC THEORY ELASTICITY ELECTRICITY EMAILS EMPIRICAL EVIDENCE EMPIRICAL STUDIES EMPLOYMENT ENTERPRISE SURVEY ENTERPRISE SURVEYS EQUIPMENT ESP ESTIMATION RESULTS EXCHANGE RATE EXPORT MARKETS EXPORTS EXTERNAL FACTORS FACTOR ACCUMULATION FACTOR PRICES FACTORS OF PRODUCTION FINANCIAL MARKETS FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTMENTS FUTURE RESEARCH GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM ANALYSIS GLOBAL ECONOMY GLOBAL LEVEL GLOBAL MARKETS GROSS DOMESTIC PRODUCT GROSS OUTPUT GROSS VALUE GROWTH ACCOUNTING GROWTH ANALYSIS GROWTH MODELS GROWTH PERFORMANCE GROWTH PROCESS GROWTH RATE GROWTH RATE OF OUTPUT GROWTH RATES GROWTH REGRESSIONS HUMAN CAPITAL IMPROVING PRODUCTIVITY INCOME INCOME PER CAPITA INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRY PRODUCTIVITY INNOVATION INSTITUTION INTEREST RATES INTERNAL FACTORS INTERNATIONAL STANDARDS INTERNATIONAL TRADE INVESTMENT CLIMATE LABOR INPUT LABOR REGULATIONS LEGAL SYSTEM LONG-TERM GROWTH MACROECONOMIC GROWTH MACROECONOMIC INSTABILITY MANUFACTURING MANUFACTURING INDUSTRIES MARGINAL PRODUCT MARKET ECONOMIES MARKET IMPERFECTIONS MARKET SHARE MATERIAL MONETARY ECONOMICS MONOPOLY NATURAL MONOPOLIES NEW TECHNOLOGIES OUTPUT GROWTH OUTPUT RATIO OUTPUTS PERFORMANCES POLICY CHANGES POLICY IMPLICATIONS POLICY MAKERS POLICY REFORMS POLICY RESEARCH POLITICAL ECONOMY POOR COUNTRIES PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY CHANGE R&D REGULATORY POLICY RELATIVE CONTRIBUTION RESULT SIGNIFICANT CORRELATION SIGNIFICANT FACTOR STANDARD FORMAT TECHNICAL CHANGE TECHNICAL PROGRESS TELECOMMUNICATIONS TFP TIME PERIOD TOP MANAGEMENT TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TOTAL OUTPUT TRADE BARRIERS TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE VOLUMES TURNOVER RATE USES VALUE ADDED WEB |
| spellingShingle |
ABSOLUTE VALUE AGGREGATE LEVEL AGRICULTURE ALLOCATIVE EFFICIENCY AVERAGE GROWTH AVERAGE GROWTH RATE AVERAGE LEVEL BANKRUPTCY BEST PRACTICES BOOK VALUE BUSINESSES CAPITAL ACCUMULATION CAPITAL STOCK CAPITAL TIMES COMPARATIVE ANALYSIS COMPUTERS CONSTANT RETURNS CONSTANT RETURNS TO SCALE COUNTRY REGRESSIONS CROSS COUNTRY CUSTOMS DATA ANALYSIS DATA AVAILABILITY DAY-TO-DAY OPERATIONS DEPENDENT VARIABLE DETERMINANTS OF GROWTH DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT INDICATORS DISAGGREGATED LEVEL DOMESTIC MARKETS ECONOMIC ACTIVITY ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC PERFORMANCE ECONOMIC STUDIES ECONOMIC THEORY ELASTICITY ELECTRICITY EMAILS EMPIRICAL EVIDENCE EMPIRICAL STUDIES EMPLOYMENT ENTERPRISE SURVEY ENTERPRISE SURVEYS EQUIPMENT ESP ESTIMATION RESULTS EXCHANGE RATE EXPORT MARKETS EXPORTS EXTERNAL FACTORS FACTOR ACCUMULATION FACTOR PRICES FACTORS OF PRODUCTION FINANCIAL MARKETS FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTMENTS FUTURE RESEARCH GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM ANALYSIS GLOBAL ECONOMY GLOBAL LEVEL GLOBAL MARKETS GROSS DOMESTIC PRODUCT GROSS OUTPUT GROSS VALUE GROWTH ACCOUNTING GROWTH ANALYSIS GROWTH MODELS GROWTH PERFORMANCE GROWTH PROCESS GROWTH RATE GROWTH RATE OF OUTPUT GROWTH RATES GROWTH REGRESSIONS HUMAN CAPITAL IMPROVING PRODUCTIVITY INCOME INCOME PER CAPITA INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRY PRODUCTIVITY INNOVATION INSTITUTION INTEREST RATES INTERNAL FACTORS INTERNATIONAL STANDARDS INTERNATIONAL TRADE INVESTMENT CLIMATE LABOR INPUT LABOR REGULATIONS LEGAL SYSTEM LONG-TERM GROWTH MACROECONOMIC GROWTH MACROECONOMIC INSTABILITY MANUFACTURING MANUFACTURING INDUSTRIES MARGINAL PRODUCT MARKET ECONOMIES MARKET IMPERFECTIONS MARKET SHARE MATERIAL MONETARY ECONOMICS MONOPOLY NATURAL MONOPOLIES NEW TECHNOLOGIES OUTPUT GROWTH OUTPUT RATIO OUTPUTS PERFORMANCES POLICY CHANGES POLICY IMPLICATIONS POLICY MAKERS POLICY REFORMS POLICY RESEARCH POLITICAL ECONOMY POOR COUNTRIES PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY CHANGE R&D REGULATORY POLICY RELATIVE CONTRIBUTION RESULT SIGNIFICANT CORRELATION SIGNIFICANT FACTOR STANDARD FORMAT TECHNICAL CHANGE TECHNICAL PROGRESS TELECOMMUNICATIONS TFP TIME PERIOD TOP MANAGEMENT TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TOTAL OUTPUT TRADE BARRIERS TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE VOLUMES TURNOVER RATE USES VALUE ADDED WEB Nallari, Raj Bayraktar, Nihal Micro Efficiency and Macro Growth |
| geographic_facet |
The World Region |
| relation |
Policy Research working paper ; no. WPS 5267 |
| description |
This paper is about micro foundations of
productivity and growth. There are several studies on
productivity for advanced economies but relatively few for
developing countries. Using data from the investment climate
surveys of the World Bank, estimation results from 45
developing countries, complemented by extended analysis at
firm and industry levels for Brazil and India for the period
2002-05, indicate the following: (i) confirmation of the
importance of total factor productivity at firm, industry
and national levels, but total factor productivity
progressively tapers off at each level of aggregation
implying that there is a less than one-to-one relationship
between micro-efficiency, sector growth, and macro growth;
(ii) capital accumulation is more important at the macro
level than the micro level; (iii) productivity at the micro
level is driven by research and development, the capacity
utilization rate, and adoption of foreign technology (all of
which involve management decisions), and is negatively
related to corruption and instability, tax, and financial
regulations; and (iii) confirmation of the lower
contribution of total factor productivity to output growth
in developing countries than in developed economies.
Management decisions are involved in a lot of day-to-day
operations at the firm level and therefore management is an
unmeasured input. In developing countries, at the firm
level, there is a need to understand the contribution of
quality of inputs (management quality, education and labor
quality, training, experience of workers, use of computers
at work) and also the role of external agglomeration (for
example, location in a booming city, competitive pressures
from new firms, trade competition, and regulations). |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Nallari, Raj Bayraktar, Nihal |
| author_facet |
Nallari, Raj Bayraktar, Nihal |
| author_sort |
Nallari, Raj |
| title |
Micro Efficiency and Macro Growth |
| title_short |
Micro Efficiency and Macro Growth |
| title_full |
Micro Efficiency and Macro Growth |
| title_fullStr |
Micro Efficiency and Macro Growth |
| title_full_unstemmed |
Micro Efficiency and Macro Growth |
| title_sort |
micro efficiency and macro growth |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100412113736 http://hdl.handle.net/10986/3754 |
| _version_ |
1764388154960248832 |
| spelling |
okr-10986-37542021-04-23T14:02:12Z Micro Efficiency and Macro Growth Nallari, Raj Bayraktar, Nihal ABSOLUTE VALUE AGGREGATE LEVEL AGRICULTURE ALLOCATIVE EFFICIENCY AVERAGE GROWTH AVERAGE GROWTH RATE AVERAGE LEVEL BANKRUPTCY BEST PRACTICES BOOK VALUE BUSINESSES CAPITAL ACCUMULATION CAPITAL STOCK CAPITAL TIMES COMPARATIVE ANALYSIS COMPUTERS CONSTANT RETURNS CONSTANT RETURNS TO SCALE COUNTRY REGRESSIONS CROSS COUNTRY CUSTOMS DATA ANALYSIS DATA AVAILABILITY DAY-TO-DAY OPERATIONS DEPENDENT VARIABLE DETERMINANTS OF GROWTH DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT INDICATORS DISAGGREGATED LEVEL DOMESTIC MARKETS ECONOMIC ACTIVITY ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC PERFORMANCE ECONOMIC STUDIES ECONOMIC THEORY ELASTICITY ELECTRICITY EMAILS EMPIRICAL EVIDENCE EMPIRICAL STUDIES EMPLOYMENT ENTERPRISE SURVEY ENTERPRISE SURVEYS EQUIPMENT ESP ESTIMATION RESULTS EXCHANGE RATE EXPORT MARKETS EXPORTS EXTERNAL FACTORS FACTOR ACCUMULATION FACTOR PRICES FACTORS OF PRODUCTION FINANCIAL MARKETS FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTMENTS FUTURE RESEARCH GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM ANALYSIS GLOBAL ECONOMY GLOBAL LEVEL GLOBAL MARKETS GROSS DOMESTIC PRODUCT GROSS OUTPUT GROSS VALUE GROWTH ACCOUNTING GROWTH ANALYSIS GROWTH MODELS GROWTH PERFORMANCE GROWTH PROCESS GROWTH RATE GROWTH RATE OF OUTPUT GROWTH RATES GROWTH REGRESSIONS HUMAN CAPITAL IMPROVING PRODUCTIVITY INCOME INCOME PER CAPITA INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRY PRODUCTIVITY INNOVATION INSTITUTION INTEREST RATES INTERNAL FACTORS INTERNATIONAL STANDARDS INTERNATIONAL TRADE INVESTMENT CLIMATE LABOR INPUT LABOR REGULATIONS LEGAL SYSTEM LONG-TERM GROWTH MACROECONOMIC GROWTH MACROECONOMIC INSTABILITY MANUFACTURING MANUFACTURING INDUSTRIES MARGINAL PRODUCT MARKET ECONOMIES MARKET IMPERFECTIONS MARKET SHARE MATERIAL MONETARY ECONOMICS MONOPOLY NATURAL MONOPOLIES NEW TECHNOLOGIES OUTPUT GROWTH OUTPUT RATIO OUTPUTS PERFORMANCES POLICY CHANGES POLICY IMPLICATIONS POLICY MAKERS POLICY REFORMS POLICY RESEARCH POLITICAL ECONOMY POOR COUNTRIES PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY CHANGE R&D REGULATORY POLICY RELATIVE CONTRIBUTION RESULT SIGNIFICANT CORRELATION SIGNIFICANT FACTOR STANDARD FORMAT TECHNICAL CHANGE TECHNICAL PROGRESS TELECOMMUNICATIONS TFP TIME PERIOD TOP MANAGEMENT TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TOTAL OUTPUT TRADE BARRIERS TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE VOLUMES TURNOVER RATE USES VALUE ADDED WEB This paper is about micro foundations of productivity and growth. There are several studies on productivity for advanced economies but relatively few for developing countries. Using data from the investment climate surveys of the World Bank, estimation results from 45 developing countries, complemented by extended analysis at firm and industry levels for Brazil and India for the period 2002-05, indicate the following: (i) confirmation of the importance of total factor productivity at firm, industry and national levels, but total factor productivity progressively tapers off at each level of aggregation implying that there is a less than one-to-one relationship between micro-efficiency, sector growth, and macro growth; (ii) capital accumulation is more important at the macro level than the micro level; (iii) productivity at the micro level is driven by research and development, the capacity utilization rate, and adoption of foreign technology (all of which involve management decisions), and is negatively related to corruption and instability, tax, and financial regulations; and (iii) confirmation of the lower contribution of total factor productivity to output growth in developing countries than in developed economies. Management decisions are involved in a lot of day-to-day operations at the firm level and therefore management is an unmeasured input. In developing countries, at the firm level, there is a need to understand the contribution of quality of inputs (management quality, education and labor quality, training, experience of workers, use of computers at work) and also the role of external agglomeration (for example, location in a booming city, competitive pressures from new firms, trade competition, and regulations). 2012-03-19T18:39:13Z 2012-03-19T18:39:13Z 2010-04-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100412113736 http://hdl.handle.net/10986/3754 English Policy Research working paper ; no. WPS 5267 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region |