COVID-19 acceleration in digitalisation, aggregate productivity growth and the functional income distribution

This chapter identifies the differing policies and outcomes that Canadians and Americans have pursued with respect to economic growth, stabilization, and income distribution, and it analyzes several factors that can partially explain why divergent policy choices have emerged. The United States (U.S.) has recorded better productivity growth, while Canada has achieved a more sustainable fiscal policy, a less fragile financial sector, and more generous distributional policies. These contrasting outcomes are related to differences in size and geography, in political culture, and in political institutions. The analysis also considers how much it may be possible for each country’s policymakers to benefit from the other’s experiences. While identifying some lessons in this regard, the authors conclude that the sheer difference in the size of the two economies affects which economic policies can be expected to be effective. As a result, it is concluded that convergence in economic policymaking will remain somewhat limited.

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Informality, innovation, and aggregate productivity growth

Review of Development Economics ◽

10.1111/rode.12626 ◽

2019 ◽

Vol 24 (1) ◽

pp. 125-143

Author(s):

Tyler C. Schipper

Keyword(s):

Productivity Growth ◽

Aggregate Productivity

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Plant-level dynamics and aggregate productivity growth in the Turkish meat-processing industry: Evidence from longitudinal data

Agribusiness ◽

10.1002/agr.20074 ◽

2006 ◽

Vol 22 (1) ◽

pp. 91-107 ◽

Cited By ~ 1

Author(s):

Mahmut Yasar ◽

Roderick M. Rejesus ◽

Ilhami Mintemur

Keyword(s):

Longitudinal Data ◽

Productivity Growth ◽

Aggregate Productivity ◽

Meat Processing ◽

Processing Industry ◽

Plant Level

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Formalization and productivity: firm-level evidence from Viet Nam

10.35188/unu-wider/2020/921-1 ◽

2020 ◽

Author(s):

Jann Lay ◽

Tevin Tafese

Keyword(s):

Productivity Growth ◽

Manufacturing Sector ◽

Viet Nam ◽

Aggregate Productivity ◽

Entry And Exit ◽

Formal Sector ◽

Policy Changes ◽

Firm Level ◽

Productivity Dynamics ◽

Firm Entry And Exit

Using a firm-level panel dataset on private small- and medium-sized enterprises (SMEs) in Viet Nam’s manufacturing sector, this paper examines productivity dynamics of formal and informal firms. We decompose productivity changes into changes within and between formal and informal firms. We assess the contributions of firm entry and exit as well as informal–formal transitions. Our results show that productivity is considerably lower and misallocation more prevalent in the informal than in the formal sector. Yet, formalizing firms in Viet Nam make an important contribution to aggregate productivity growth among manufacturing SMEs, growing faster than other firms and increasing efficiency. We identify two ‘regimes’ of formalization. Until early 2010, more productive (previously) informal firms formalize. Policy changes and accelerated formalization then alter the characteristics of formalizers, as less productive firms become formal. While this formalization wave depresses average formal total factor productivity growth, the overall productivity effect is positive.

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