Misallocation and aggregate productivity across time and space.

Productivity is at the core of the large differences in income per capita across countries. What accounts for international productivity differences? I discuss cross‐country differences in the allocation of inputs across heterogeneous production units—misallocation—as a potential factor in accountin...

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Detalles Bibliográficos
Publicado en:Canadian Journal of Economics Vol. 52; no. 1; pp. 5 - 33
Autor principal: Restuccia, Diego
Formato: Artículo
Publicado: Wiley-Blackwell Feb2019
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Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:Productivity is at the core of the large differences in income per capita across countries. What accounts for international productivity differences? I discuss cross‐country differences in the allocation of inputs across heterogeneous production units—misallocation—as a potential factor in accounting for aggregate productivity. Policies and institutions generating misallocation are prevalent in poor and developing countries and may also be responsible for differences in the selection of operating producers and technology used, contributing substantially to aggregate productivity differences across countries.