Why Do Firms in Developing Countries Have Low Productivity

  title={Why Do Firms in Developing Countries Have Low Productivity},
  author={Nicholas Bloom and Aprajit Mahajan and David McKenzie and John P. Roberts},
  journal={The American Economic Review},
The productivity of firms in developing countries appears to be extremely low. Prior work, such as that summarized in James Tybout (2000) and World Bank (2004), has highlighted a set of issues around infrastructure, informality, regulations, trade policies, and human capital that reduce the productivity of firms in developing countries. In this short article we want to focus instead on three other areas which recent research has emphasized: management practices, financial constraints and the… 

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