Firm Productivity in Bangladesh Manufacturing Industries
The author studies the determinants of total factor productivity (TFP) for manufacturing firms in Bangladesh using data from a recent survey. She obtains TFP measures by making use of firm-specific deflators for output and inputs. Controlling for industry, location, and year fixed effects, she finds that: (1) firm size and TFP are negatively correlated; (2) firm age and TFP exhibit an inverse-U shaped relationship; (3) TFP improves with the quality of the firm's human capital; (4) global integration improves TFP; (5) firms with research and development activities and quality certifications have higher TFP, while more advanced technologies improve TFP only in the presence of significant absorptive capacity; (6) power supply problems cost firms heavily in terms of TFP losses; and (7) the presence of crime dampens TFP.
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| Language: | English |
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World Bank, Washington, DC
2006-08
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| Subjects: | AVERAGE PRODUCTIVITY, BANKRUPTCY, BUSINESS ENVIRONMENT, CAPITAL STOCK, CONSTRUCTION, CORPORATE MANAGEMENT, DEFLATORS, ECONOMETRIC ANALYSIS, ECONOMIES OF SCALE, EMPLOYMENT, EXPANSION, EXPORTS, FIRM SIZE, FIRMS, FOREIGN MARKETS, GOVERNMENT REGULATION, GROWTH LITERATURE, GROWTH RATE, GROWTH RATES, HIGH LEVELS, HUMAN CAPITAL, INEFFICIENCY, INTERNATIONAL MARKETS, INVENTORY, LEASING, LICENSING, PERFECT COMPETITION, PRODUCT MARKETS, PRODUCTION FUNCTION, PRODUCTION FUNCTIONS, PRODUCTIVITY GROWTH, REGULATORY POLICY, RETURNS TO SCALE, SHARE OF OUTPUT, SMALL FIRMS, TECHNOLOGICAL PROGRESS, TFP, TOTAL CAPITAL STOCK, TOTAL FACTOR PRODUCTIVITY, WAGES, WEALTH, |
| Online Access: | http://documents.worldbank.org/curated/en/2006/08/6975707/firm-productivity-bangladesh-manufacturing-industries https://hdl.handle.net/10986/8363 |
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| Summary: | The author studies the determinants of total factor productivity (TFP) for manufacturing firms in Bangladesh using data from a recent survey. She obtains TFP measures by making use of firm-specific deflators for output and inputs. Controlling for industry, location, and year fixed effects, she finds that: (1) firm size and TFP are negatively correlated; (2) firm age and TFP exhibit an inverse-U shaped relationship; (3) TFP improves with the quality of the firm's human capital; (4) global integration improves TFP; (5) firms with research and development activities and quality certifications have higher TFP, while more advanced technologies improve TFP only in the presence of significant absorptive capacity; (6) power supply problems cost firms heavily in terms of TFP losses; and (7) the presence of crime dampens TFP. |
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