The management of firms in developing countries is typically of lower quality than in richer parts of the world. A study of Mexico by Nicholas Bloom, Leonardo Iacovone, Mariana Pereira-López and John Van Reenen indicates that misallocation (too many resources staying in badly run firms) is a key driver of these differences. Weak competition and inadequate rule of law seem to lie behind the difficulties that even well-managed firms have in growing.
Nicholas Bloom, Leonardo Iacovone, Mariana Pereira-Lopez and John Van Reenen
20 October 2022 Paper Number CEPCP640
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This work is published under POID and the CEP's Growth programme.
This publication comes under the following CEP theme: Management practices and productivity