Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?

摘要: Competition among manufacturers in developing countries is remarkably vigorous. Nonetheless, markets are imperfect, so the general trend toward trade liberalization has yielded benefits beyond traditional gains from specialization. Manufacturing firms have traditionally been relatively protected. They also subject to heavy regulation, much of it biased favor large enterprises. Accordingly, often argued that these perform poorly several respects: - Markets tolerate inefficient firms, cross-firm productivity dispersion high. Small groups entrenched oligopolists exploit monopoly power product markets. Many small unable or unwilling grow, important economies scale go unexploited. Tybout assesses each conjectures, drawing on plant and firm level studies countries. He finds systematic support for none them. Turnover substantial, exploited modest, convincing demonstrations rents generally lacking. Overprotection overregulation probably less a problem than uncertainty about policies demand, poor rule law, corruption. does find some evidence protection increases firms' price-cost margins reduces average efficiency levels at margin. And although econometric technology diffusion limited, suggest protecting learning industries unlikely foster growth. All which suggests greater trade. This paper Trade, Development Research Group part larger effort group link firm-level performance with commerical policy.