Industry Level Analysis : The Way to Identify the Binding Constraints to Economic Growth
There are many economic diagnostic tools available which are trying to identify the constraints to economic growth in a given country. Unfortunately these tools tend to provide inconclusive and often conflicting answers as to what the most important constraints are. Even more worrisome, they tend to...
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| Format: | Policy Research Working Paper |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2005/03/5704348/industry-level-analysis-way-identify-binding-constraints-economic-growth http://hdl.handle.net/10986/8976 |
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okr-10986-89762021-04-23T14:02:42Z Industry Level Analysis : The Way to Identify the Binding Constraints to Economic Growth Palmade, Vincent ACCOUNTABILITY AGRICULTURE ASSETS BANKING SYSTEM BASKET OF GOODS BENCHMARK BENCHMARKING BENCHMARKS BORROWING CAPITAL INVESTMENTS CAPITAL MARKETS CITIES COLLATERAL COMPETITION COMPETITIVE ADVANTAGE COMPETITIVE MARKETS CONSUMERS CORPORATE TAXES DEBT DEVELOPED COUNTRIES ECONOMIC CONSEQUENCES ECONOMIC DEVELOPMENT ECONOMIC EFFECTS ECONOMIC GROWTH ECONOMIC IMPACT ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMIC SECTORS ECONOMICS ECONOMICS LITERATURE ECONOMISTS EFFLUENTS EMPLOYMENT ENERGY TAXES EXCHANGE RATES FINANCIAL DATA FINANCIAL INSTITUTIONS FUTURE LABOR GDP GDP PER CAPITA GDP/CAPITA GOVERNMENT EXPENDITURES GOVERNMENT FINANCE GROWTH POTENTIAL GROWTH RATE HOUSING IMPORT TARIFFS IMPORTS INCOME INCOME/REVENUE INFRASTRUCTURE/CLUSTERS INNOVATION LABOR COSTS LABOR INPUTS LABOR LAWS LABOR MARKET LABOR MARKET RIGIDITIES LABOR MARKETS LABOR PRODUCTIVITY LAWS LEVEL PLAYING FIELD LOCAL GOVERNMENT LOCAL GOVERNMENTS LOSSES/BANKRUPTCY LOW TARIFFS M2 M2/THOUSAND M2/UNIT MACROECONOMIC CONDITIONS MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MARGINAL COST MARKET MARKET COMPETITION MARKET PRICES MIDDLE INCOME COUNTRIES NATURAL MONOPOLIES NET MARGIN NEW ENTRANTS OIL OPERATING EXPENSES OUTPUTS PRIVATIZATION PRODUCTIVITY PRODUCTIVITY GROWTH PROFITABILITY PROFITABILITY ANALYSIS PROPERTY RIGHTS PROPERTY TAXES PUBLIC SERVICES PUBLIC TRANSPORTATION PURCHASING POWER REGULATIONS/GOVERNANCE RETAIL BANKING RETAINED EARNINGS RETIREMENT SAFETY SAFETY/HEALTH SAVINGS SUBSIDIARY TAX COLLECTION TOTAL FACTOR PRODUCTIVITY TRADE BALANCE TRADE BARRIERS TRADE/FDI TRANSPORT UNFAIR COMPETITION USER CHARGES VALUE ADDED VALUEADDED WATER PRICES There are many economic diagnostic tools available which are trying to identify the constraints to economic growth in a given country. Unfortunately these tools tend to provide inconclusive and often conflicting answers as to what the most important constraints are. Even more worrisome, they tend to overlook the many industry-specific policy and enforcement issues which, collectively, have been found to be the most important constraints to economic growth. This is the key finding from more than 10 years of economic research by the McKinsey Global Institute (MGI). The MGI Country studies have been uniquely based on the in-depth analysis of a representative sample of industries where clear causality links could be established between factors in the firms' external environment and their behavior, in particular through the analysis of competitive dynamics. They showed in detail how industry-specific policy and enforcement issues were the main constraints to private investment and fair competition-the two drivers of productivity and thus economic growth. This finding implies that governments and international financial institutions should rely on in-depth industry level analysis to uncover product market competition issues and set reform priorities. These analyses should include the often overlooked but critically important domestic service sectors such as retail and housing construction. 2012-06-25T21:33:11Z 2012-06-25T21:33:11Z 2005-03 http://documents.worldbank.org/curated/en/2005/03/5704348/industry-level-analysis-way-identify-binding-constraints-economic-growth http://hdl.handle.net/10986/8976 English Policy Research Working Paper; No. 3551 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 |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English |
| topic |
ACCOUNTABILITY AGRICULTURE ASSETS BANKING SYSTEM BASKET OF GOODS BENCHMARK BENCHMARKING BENCHMARKS BORROWING CAPITAL INVESTMENTS CAPITAL MARKETS CITIES COLLATERAL COMPETITION COMPETITIVE ADVANTAGE COMPETITIVE MARKETS CONSUMERS CORPORATE TAXES DEBT DEVELOPED COUNTRIES ECONOMIC CONSEQUENCES ECONOMIC DEVELOPMENT ECONOMIC EFFECTS ECONOMIC GROWTH ECONOMIC IMPACT ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMIC SECTORS ECONOMICS ECONOMICS LITERATURE ECONOMISTS EFFLUENTS EMPLOYMENT ENERGY TAXES EXCHANGE RATES FINANCIAL DATA FINANCIAL INSTITUTIONS FUTURE LABOR GDP GDP PER CAPITA GDP/CAPITA GOVERNMENT EXPENDITURES GOVERNMENT FINANCE GROWTH POTENTIAL GROWTH RATE HOUSING IMPORT TARIFFS IMPORTS INCOME INCOME/REVENUE INFRASTRUCTURE/CLUSTERS INNOVATION LABOR COSTS LABOR INPUTS LABOR LAWS LABOR MARKET LABOR MARKET RIGIDITIES LABOR MARKETS LABOR PRODUCTIVITY LAWS LEVEL PLAYING FIELD LOCAL GOVERNMENT LOCAL GOVERNMENTS LOSSES/BANKRUPTCY LOW TARIFFS M2 M2/THOUSAND M2/UNIT MACROECONOMIC CONDITIONS MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MARGINAL COST MARKET MARKET COMPETITION MARKET PRICES MIDDLE INCOME COUNTRIES NATURAL MONOPOLIES NET MARGIN NEW ENTRANTS OIL OPERATING EXPENSES OUTPUTS PRIVATIZATION PRODUCTIVITY PRODUCTIVITY GROWTH PROFITABILITY PROFITABILITY ANALYSIS PROPERTY RIGHTS PROPERTY TAXES PUBLIC SERVICES PUBLIC TRANSPORTATION PURCHASING POWER REGULATIONS/GOVERNANCE RETAIL BANKING RETAINED EARNINGS RETIREMENT SAFETY SAFETY/HEALTH SAVINGS SUBSIDIARY TAX COLLECTION TOTAL FACTOR PRODUCTIVITY TRADE BALANCE TRADE BARRIERS TRADE/FDI TRANSPORT UNFAIR COMPETITION USER CHARGES VALUE ADDED VALUEADDED WATER PRICES |
| spellingShingle |
ACCOUNTABILITY AGRICULTURE ASSETS BANKING SYSTEM BASKET OF GOODS BENCHMARK BENCHMARKING BENCHMARKS BORROWING CAPITAL INVESTMENTS CAPITAL MARKETS CITIES COLLATERAL COMPETITION COMPETITIVE ADVANTAGE COMPETITIVE MARKETS CONSUMERS CORPORATE TAXES DEBT DEVELOPED COUNTRIES ECONOMIC CONSEQUENCES ECONOMIC DEVELOPMENT ECONOMIC EFFECTS ECONOMIC GROWTH ECONOMIC IMPACT ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMIC SECTORS ECONOMICS ECONOMICS LITERATURE ECONOMISTS EFFLUENTS EMPLOYMENT ENERGY TAXES EXCHANGE RATES FINANCIAL DATA FINANCIAL INSTITUTIONS FUTURE LABOR GDP GDP PER CAPITA GDP/CAPITA GOVERNMENT EXPENDITURES GOVERNMENT FINANCE GROWTH POTENTIAL GROWTH RATE HOUSING IMPORT TARIFFS IMPORTS INCOME INCOME/REVENUE INFRASTRUCTURE/CLUSTERS INNOVATION LABOR COSTS LABOR INPUTS LABOR LAWS LABOR MARKET LABOR MARKET RIGIDITIES LABOR MARKETS LABOR PRODUCTIVITY LAWS LEVEL PLAYING FIELD LOCAL GOVERNMENT LOCAL GOVERNMENTS LOSSES/BANKRUPTCY LOW TARIFFS M2 M2/THOUSAND M2/UNIT MACROECONOMIC CONDITIONS MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MARGINAL COST MARKET MARKET COMPETITION MARKET PRICES MIDDLE INCOME COUNTRIES NATURAL MONOPOLIES NET MARGIN NEW ENTRANTS OIL OPERATING EXPENSES OUTPUTS PRIVATIZATION PRODUCTIVITY PRODUCTIVITY GROWTH PROFITABILITY PROFITABILITY ANALYSIS PROPERTY RIGHTS PROPERTY TAXES PUBLIC SERVICES PUBLIC TRANSPORTATION PURCHASING POWER REGULATIONS/GOVERNANCE RETAIL BANKING RETAINED EARNINGS RETIREMENT SAFETY SAFETY/HEALTH SAVINGS SUBSIDIARY TAX COLLECTION TOTAL FACTOR PRODUCTIVITY TRADE BALANCE TRADE BARRIERS TRADE/FDI TRANSPORT UNFAIR COMPETITION USER CHARGES VALUE ADDED VALUEADDED WATER PRICES Palmade, Vincent Industry Level Analysis : The Way to Identify the Binding Constraints to Economic Growth |
| relation |
Policy Research Working Paper; No. 3551 |
| description |
There are many economic diagnostic tools available which are trying to identify the constraints to economic growth in a given country. Unfortunately these tools tend to provide inconclusive and often conflicting answers as to what the most important constraints are. Even more worrisome, they tend to overlook the many industry-specific policy and enforcement issues which, collectively, have been found to be the most important constraints to economic growth. This is the key finding from more than 10 years of economic research by the McKinsey Global Institute (MGI). The MGI Country studies have been uniquely based on the in-depth analysis of a representative sample of industries where clear causality links could be established between factors in the firms' external environment and their behavior, in particular through the analysis of competitive dynamics. They showed in detail how industry-specific policy and enforcement issues were the main constraints to private investment and fair competition-the two drivers of productivity and thus economic growth. This finding implies that governments and international financial institutions should rely on in-depth industry level analysis to uncover product market competition issues and set reform priorities. These analyses should include the often overlooked but critically important domestic service sectors such as retail and housing construction. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Palmade, Vincent |
| author_facet |
Palmade, Vincent |
| author_sort |
Palmade, Vincent |
| title |
Industry Level Analysis : The Way to Identify the Binding Constraints to Economic Growth |
| title_short |
Industry Level Analysis : The Way to Identify the Binding Constraints to Economic Growth |
| title_full |
Industry Level Analysis : The Way to Identify the Binding Constraints to Economic Growth |
| title_fullStr |
Industry Level Analysis : The Way to Identify the Binding Constraints to Economic Growth |
| title_full_unstemmed |
Industry Level Analysis : The Way to Identify the Binding Constraints to Economic Growth |
| title_sort |
industry level analysis : the way to identify the binding constraints to economic growth |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2005/03/5704348/industry-level-analysis-way-identify-binding-constraints-economic-growth http://hdl.handle.net/10986/8976 |
| _version_ |
1764407195608285184 |