Producer turnover and productivity growth in developing countries

Research output: Contribution to journalArticle

15 Citations (Scopus)

Abstract

The reallocation of resources, either across sectors or across producers within a sector, can serve as a potential source of productivity growth. New research findings exploit comprehensive microeconomic data on the manufacturing sectors of Chile, Colombia, and Morocco to document resource shifts as producers enter, expand, contract, and exit operation. The micro-level adjustment is substantial; between 25 and 30 percent of the total number of manufacturing jobs turn over each year. In the short run, the productivity effects of this turnover are modest because the new plants that come on line are only slightly more productive than the ones they replace - and both are typically small. In the longer term, however, the turnover generates more substantial increases in productivity because the new firms that survive record substantial productivity gains in their early years. Moreover, firms that exit are typically on a downward productivity spiral and would probably have dragged down sectoral efficiency farther if they had continued in operation.

Original languageEnglish (US)
Pages (from-to)1-18
Number of pages18
JournalWorld Bank Research Observer
Volume12
Issue number1
DOIs
StatePublished - Jan 1 1997

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turnover
producer
productivity
developing world
developing country
increase in productivity
firm
manufacturing
microeconomics
manufacturing sector
Morocco
micro level
Colombia
resources
Chile
resource
efficiency
Developing countries
Productivity
Productivity growth

All Science Journal Classification (ASJC) codes

  • Development
  • Economics and Econometrics

Cite this

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Producer turnover and productivity growth in developing countries. / Roberts, Mark John; Tybout, James.

In: World Bank Research Observer, Vol. 12, No. 1, 01.01.1997, p. 1-18.

Research output: Contribution to journalArticle

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