Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/211276 
Year of Publication: 
2019
Series/Report no.: 
WIDER Working Paper No. 2019/46
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
Misallocation of labour and capital can greatly reduce aggregate productivity. In this study, we use tax administrative data to examine the extent of resource misallocation in the South African context. In addition, we zoom in on how different government incentives affect the allocation (or misallocation) of capital and labour across firms, and we quantify the extent to which alleviating these policy-induced distortions would improve productivity for the manufacturing sector in South Africa. We also analyse heterogeneity in the extent of misallocation along the firm size distribution and identify firm size categories where these policy distortions are having the biggest impact on productivity.
Subjects: 
marginal revenue product
resource misallocation
South Africa
total factor productivity
JEL: 
D24
O4
Persistent Identifier of the first edition: 
ISBN: 
978-92-9256-680-7
Document Type: 
Working Paper

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