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

Tybout, James R·2000·Journal of Economic Literature

Abstract

The manufacturing sectors of developing countries have traditionally been relatively protected. They have also been subject to heavy regulation, much of which has favored large firms. Accordingly, it is often argued that in these countries: (1) markets tolerate inefficient firms, so cross-firm productivity dispersion is high; (2) small groups of entrenched oligopolists exploit monopoly power in product markets; and (3) many small firms are unable or unwilling to grow, so important scale economies go unexploited. Drawing on plant and firm level studies, I assess each of these conjectures and find none to be systematically supported. However, many open issues remain.

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Metadata

Authors
Tybout, J. R.
Venue
Journal of Economic Literature
Published
2000-03-01
Volume
38
Issue
1
Pages
11-44
ISSN
0022-0515 (ISSN-L)
OpenAlex
W3123874341
Cited by
1,530
References
3
FWCI
103.16
Type
journal article
Language
en
Open access
closed

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Tybout, J. R. (2000). Manufacturing Firms in Developing Countries: How Well Do They Do, and Why? Journal of Economic Literature. https://doi.org/10.1257/jel.38.1.11

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