EconStor >
Institute for Advanced Development Studies (INESAD), La Paz >
Development Research Working Paper Series, Institute for Advanced Development Studies (INESAD) >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/45672
  
Title:Misallocation and manufacturing TFP in the market liberalization period of Bolivia PDF Logo
Authors:Machicado, Carlos Gustavo
Birbuet, Juan Cristóbal
Issue Date:2009
Series/Report no.:Development Research Working Paper Series 2009/06
Abstract:This paper analyzes productivity levels, dispersion and growth in the Bolivian Manufacturing Sector during the Market Liberalization Period: 1988-2001. These years are characterized first, by a period of macroeconomic stabilization and 1st Generation Reforms (1988-1993), second, by a period of privatization and 2nd Generation Reforms (1994-1997) and third, by a Post-reforms period (1998-2001). The 1st and 2nd Generation Reforms were framed in line with the Washington Consensus and their main objectives were to guarantee macroeconomic stability, to improve the efficiency and allocation of resources in the economy and to promote economic growth with fairness. We show that in contrast to what was expected, productivity in the manufacturing sector decreased steadily. We compute Total Factor Productivity (TFP), for the first time, using firm-level data and in addition we break down this measure in productivity per se and resource misallocation. We find that both issues contributed to the decline in productivity and if resource misallocation were eliminated, the gains in productivity would have been in the order of 60 percent, but the trend of productivity along time would have been the same, which means that there are also structural problems that affect productivity in Bolivia. In addition, we evaluate TFP considering exporting firms, size of firms, age of firms and geographical location.
Subjects:TFP
Market Structure
Manufacturing
JEL:D24
L1
L6
Document Type:Working Paper
Appears in Collections:Development Research Working Paper Series, Institute for Advanced Development Studies (INESAD)

Files in This Item:
File Description SizeFormat
613597745.pdf1.51 MBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/45672

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.