Assessing the Impact of the Investment Climate on Productivity Using Firm-Level Data : Methodology and the Cases of Guatemala, Honduras, and Nicaragua

摘要: Developing countries are increasingly concerned about improving country competitiveness and productivity, as they face the increasing pressures of globalization attempt to improve economic growth reduce poverty. Among such countries, Investment Climate Assessments (ICA) have become a standard instrument for identifying key obstacles imputing their impact on in order prioritize policy reforms enhancing competitiveness. Given survey objectives nature limitations data collected, this report discusses advantages disadvantages using different productivity measures based at firm level. The main objective is develop methodology appropriately estimate, robust manner, investment climate variables. To illustrate use methodology, applies it collected ICAs three countries: Guatemala, Honduras Nicaragua. Observations logarithms (logs) variables, not rates growth, pooled from all countries. econometric analysis done with variables logs measurement errors allow inclusion many observations possible since "panel" set very unbalanced. Endogeneity production function inputs addressed by variant control approach, individual information, aggregating industry region. It shown that get results 10 measures, if one follows consistent specification estimation. For analysis, strongly recommends those most measures. Efficiency aspects firms each also analyzed. Finally, decomposed obtain country-specific impacts establish corresponding priorities reform. actual estimates show level significance productivity. Variables several categories, red tape infrastructure particular, appear account over 30 percent implications clear: matters enormously relative various indicates where reform efforts should be directed. robustness results, argued developed here ought used benchmark assess effects other or surveys firm-level similar characteristics.