Productivity and the investment climate : what matters most?

摘要: The authors explore the links between investment climate and firm-level productivity attempt to identify which dimensions of matter most for productivity. Their analysis is based on data collected in a recent survey garment food processing firms five countries Eastern Europe Central Asia. use first principal components series indicators summarize broad aspects those important determining results indicate that competitive pressure critical factor climate, accounting more variation than infrastructure provision or issues related government rent seeking bureaucratic burden. This suggests improve productivity, increase output, reduce poverty, policymakers should focus reform efforts removing barriers entry creating open, highly markets.