Publication:
Capital Allocation in Developing Countries

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dc.contributor.authorDavid, Joel M.
dc.contributor.authorVenkateswaran, Venky
dc.contributor.authorCusolito, Ana Paula
dc.contributor.authorDidier, Tatiana
dc.date.accessioned2019-10-04T19:13:22Z
dc.date.available2019-10-04T19:13:22Z
dc.date.issued2019-10
dc.description.abstractThis paper investigates the sources of capital misallocation across a group of 11 developing and developed countries. The main findings are (i) technological frictions, namely, adjustment costs and uncertainty, account for only a modest share of observed misallocation, leaving ample scope for other factors; (ii) heterogeneity in firm-level technologies potentially explains between one-quarter and one-half; but (iii) dispersion in markups is much smaller; and (iv) after accounting for these factors, on average, at least 50 percent of misallocation within each of these countries remains unexplained, suggesting a large role for additional, potentially distortionary factors. These factors are largely attributable to a component that is correlated with firm size/productivity and one that is essentially permanent to the firm. The paper reports a broad set of moments describing firm-level investment dynamics and detailed parameter estimates on a country-by-country basis, with an eye toward future work in this area.en
dc.identifierhttp://documents.worldbank.org/curated/en/495981569952792642/Capital-Allocation-in-Developing-Countries
dc.identifier.doi10.1596/1813-9450-9031
dc.identifier.urihttps://hdl.handle.net/10986/32491
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 9031
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectCAPITAL MISALLOCATION
dc.subjectCAPITAL FLOWS
dc.subjectFIRM PRODUCTIVITY
dc.subjectINVESTMENT DYNAMICS
dc.titleCapital Allocation in Developing Countriesen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleCapital Allocation in Developing Countries
okr.date.disclosure2019-10-01
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/495981569952792642/Capital-Allocation-in-Developing-Countries
okr.guid495981569952792642
okr.identifier.doi10.1596/1813-9450-9031
okr.identifier.externaldocumentum090224b087173cc9_1_0
okr.identifier.internaldocumentum31449489
okr.identifier.reportWPS9031
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/495981569952792642/pdf/Capital-Allocation-in-Developing-Countries.pdfen
okr.statistics.combined1457
okr.statistics.dr495981569952792642
okr.statistics.drstats928
okr.topicFinance and Financial Sector Development::Capital Markets and Capital Flows
okr.topicInternational Economics and Trade::Foreign Direct Investment
okr.topicPrivate Sector Development::Private Sector Economics
okr.unitFinance, Competitiveness and Innovation Global Practice
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relation.isAuthorOfPublicatione8bf256b-feec-5fd2-9021-2f34752b8f1e
relation.isAuthorOfPublication.latestForDiscovery2151d2ff-4e3c-5181-b0a1-bf5a52b587ec
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