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on Efficiency and Productivity |
| By: | Cotte Poveda, Alexander; Pardo Martínez, Clara Inés |
| Abstract: | The tourism industry is economically very important. According to the World Travel Tourism Council, in 2019, the tourism industry accounted for a quarter of all new jobs created worldwide, 10.3% of all jobs, and 9.6×1012 USD of the global gross domestic product. This study aimed to calculate the tourism efficiency index for different Latin American countries from 2010 to 2021 using data envelopment analysis, which analyzes the relationships between input variables (including the number of employees in the tourism industry and the number of hotel-type establishments) and output variables (including tourism expenditures in other countries and public social expenditures in recreation and culture per capita). Additionally, this study aimed to identify the countries with greater tourism development and the factors that may affect the development of the tourism industry through the stochastic frontier production function. The results of the tourism efficiency index for Central America (including Costa Rica, Dominica, El Salvador, Honduras, Mexico, and Panama) and South America (including Argentina, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, and Uruguay) exhibited different trends. However, after the global health crisis, the tourism industry recovered, showing new opportunities to promote sustainability. The results of the stochastic frontier production function demonstrated that countries with higher levels of inbound and outbound tourism, contribution of tourism to the economy, natural resources, and literacy rate exhibited more efficient tourism industry, whereas countries with higher pollution levels exhibited less efficient tourism industry. The findings of this study could allow us to formulate suitable public policies to promote tourism, maintain natural resources, and diversify these sectors with more inclusive programmes that can facilitate growth and benefit vulnerable communities. |
| Keywords: | Tourism industry, Tourism efficiency, index Stochastic frontier, production function, Data envelopment analysis (DEA), Latin America. |
| JEL: | O10 O13 |
| Date: | 2024–12–02 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123619 |
| By: | Yuhan He |
| Abstract: | This study examines the influence of employee education and health on firm-level Total Factor Productivity (TFP) in China, using panel data from A-share listed companies spanning from 2007 to 2022. The analysis shows that life expectancy and higher education have a significant impact on TFP. More optimal health conditions can result in increased productivity through decreased absenteeism and improved work efficiency. Similarly, higher levels of education can support technological adaptation, innovation, and managerial efficiency. Nevertheless, the correlation between health and higher education indicates that there may be a point where further improvements in health yield diminishing returns in terms of productivity for individuals with advanced education. These findings emphasise the importance of implementing comprehensive policies that improve both health and education, maximising their impact on productivity. This study adds to the current body of research by presenting empirical evidence at the firm-level in China. It also provides practical insights for policymakers and business leaders who want to improve economic growth and competitiveness. Future research should take into account wider datasets, more extensive health metrics, and delve into the mechanisms that contribute to the diminishing returns observed in the relationship between health and education. |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2503.00085 |
| By: | Apeti, Ablam Estel; Ly, Alpha |
| Abstract: | This paper analyzes the effects of power outages and constraints on manufacturing firms’ revenue-based total factor productivity in developing countries. The empirical analysis is based on the World Bank Enterprise Surveys dataset for 84 countries over 2006–2019. The paper starts by showing statistically that firms facing power outages differ and operate in very different environments compared to firms not facing power outages, underlining a potential nonrandom issue of the treatment variable. The matching-based approach (entropy balancing) is designed to contain this type of bias. It shows that power outages negatively and significantly affect firm-level revenue-based total factor productivity, with a 9 percent lower unconditional average productivity for exposed firms compared to nonexposed firms. Moreover, the estimates suggest a connection between the severity of self-reported power constraints or obstacles by firms and the magnitude of revenue-based total factor productivity loss. The results also indicate that the effect of power outages on firm-level revenue-based total factor productivity could be influenced by the stage of economic development (low-income countries, lower-middle-income countries, upper-middle-income countries), and the ability of firms to engage in research and development and purchase backup generators. These findings suggest that to ensure economic development, the government should provide a stable power supply that can mitigate the negative shocks faced by manufacturing firms and enhance their productivity and competitiveness, allowing them to drive economic growth. |
| Date: | 2023–06–27 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10510 |
| By: | Dinerstein, Marcos; Patino Pena, Fausto Andres |
| Abstract: | This paper quantifies the impact of effective corporate tax rates on aggregate total factor productivity. Using Chilean manufacturing data, the paper documents a large dispersion in the effective tax rate faced by firms and a mass of firms facing a 0 percent tax rate. These empirical patterns are incorporated into a standard monopolistic competition model with corporate tax rates. The paper’s quantitative findings show that the TFP gains between the economy implied by the Chilean tax code of 1998–2007 and a hypothetical economy without effective corporate tax rate inefficiencies are between 4 and 11 percent. The paper considers counterfactual policies in which all firms face the same tax rate and finds a monotonically decreasing relationship between the level of the tax rate and total factor productivity. |
| Date: | 2023–04–06 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10394 |
| By: | Paul, Saumik; Raju, Dhushyanth |
| Abstract: | This paper studies the effect of a local sectoral productivity shock on subnational structural transformation. The analysis is based on regional input-output tables constructed for 2004 and 2013 and available censuses of firms in 2003 and 2013 for Ghana. Based on the data, the analysis confirms the occurrence of a mining productivity shock. Between 2004 and 2013, mining grew dramatically as a share of gross domestic product. The mining shock occurred primarily in the south of Ghana with much larger increases in mining’s share in regional output, the number of mining firms, and mining employment than in the north of the country. The findings show that the mining productivity shock led to growing regional (north-south) differences in intersectoral linkages, with greater intermediate use of mining output and a larger sectoral total factor productivity ratio between mining and manufacturing in the south than in the north. Informed by international evidence of strong intersectoral linkages between mining and heavy manufacturing industries, the paper examines the performance of heavy manufacturing in response to the mining productivity shock. The elasticity of heavy manufacturing to mining employment growth is 50 percent larger in the south than in the north, generated by an increase in both average firm employment and the entry of new firms. These north-south differences are interpreted as possibly due to weak interregional production linkages. |
| Date: | 2023–05–16 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10446 |
| By: | Alves, Julian; Serra Lorenzo, Bruno; Greenberg, Jason; Guo, Yaxin; Harjai, Ravija; Van Reenen, John |
| Abstract: | Monopsony power is an important feature of modern labour markets. We examine its impact on workers. We report the first representative survey of Non-Compete-Agreements (NCA) in the UK and find that about 26% of workers appear to be covered, a higher fraction than in comparable surveys in the US (18%) and Italy (16%). Although NCAs are more prevalent for skilled workers, a large number of low skilled workers are also subject to NCAs (e.g. over a fifth of plant operators). Moreover, although NCAs are associated with higher training (conditional on other measures of skills), we argue that such benefits are unlikely to justify their high prevalence. Finally, we examine the impact of over 2, 000 M& UK panel data between 1997 and 2022 (over 900, 000 observations). The data suggests that M&A tends to reduce employment growth in the merged entity (from 3% a year prior to the merger to about zero in the subsequent five years), particularly in target firms. However, there is no evidence of any falls in average wage growth (in acquirer or target) as monopsony would predict - if anything, average wages are higher. Nor does profitability or productivity change post-merger. |
| Keywords: | management practices; productivity; competition |
| JEL: | L2 M2 O32 O33 |
| Date: | 2024–01–29 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126835 |
| By: | Amin, Mohammad; Khalid, Usman |
| Abstract: | Ethnic fractionalization has both positive and negative consequences. It is contended that the positive effects due to skill complementarity in the production process apply to large firms that have more complex and diversified production structures. Because small businesses rely more on public goods and have less access to institutions, the negative effects of lower quality public goods and higher transaction costs have a greater impact on them. Consistent with this viewpoint, it is found that a larger firm size significantly mitigates the negative impact of higher ethnic fractionalization on the level and growth rate of labor productivity in manufacturing firms across 84 developing countries. There is no robust and significant impact of ethnic fractionalization on large firms for the main and most of the other firm size categorizations considered. The results are confirmed by the instrumental variables estimation method, which uses the duration of early human settlement in each country to instrument ethnic fractionalization. Evidence is provided on the potential mechanisms by which ethnic fractionalization affects small versus large firms. The findings have significant policy implications, which are discussed in detail. |
| Date: | 2023–03–27 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10375 |
| By: | D'Aoust, Olivia Severine; Galdo, Virgilio; Ianchovichina, Elena |
| Abstract: | The paper documents the evolution of territorial disparities in labor and location productivity in 14 countries in Latin America, using millions of observations from harmonized household surveys and censuses. Between the early 2000s and the late 2010s, most countries in the region experienced significant reductions in regional inequality as real labor incomes and location productivity premia converged at the first and second administrative levels. The leveling up reflected both the slowdown in productivity growth in affluent predominantly urban municipalities and the catchup of relatively poor, predominantly rural municipalities. Absolute convergence narrowed the labor income gaps with leading metropolitan areas, including the disparitites exploitable through migration, especially among the bottom 40 percent of households, as cities de-industrialized, yet continued to attract migrants. On the eve of the Covid-19 pandemic, income disparities with leading metropolitan areas remained high in nearly all countries, largely due to differences in educational attainment, but in a few countries, large differences in returns to endowments indicate potentially significant returns to migration to the leading metropolitan areas, especially for residents of relatively poor, remote regions. Rather than a clear rural-urban-metropolitan divide, in most countries the paper documents substantial overlap between the location-premia distributions of different types of second-level administrative areas and small differences between the average urban and rural place productivity premia. |
| Date: | 2023–06–12 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10480 |
| By: | Wang, Zhuanlin; Wang, Jinxia; Huang, Kaixing |
| Abstract: | Leveraging exogenous government irrigation investments and longitudinal household survey data over 15 years, we investigate how irrigation affects agricultural productivity under climate change. We find that the irrigation investment increased the share of irrigated farmland by 11.0%, which, in turn, increased per-area output by 14.9%, net agricultural income by 15.6%, agricultural TFP by 13.7%, and per-labor output by 36.2%. These effects are driven by four key mechanisms: increased use of high-productivity inputs, expanded cultivation area, labor reallocation from farm work to off-farm work, and mitigation of drought damage. The induced land expansion and labor reallocation explain the much larger increase in per-labor output. A cost-benefit analysis suggests a high rate of return to irrigation investment, with about half of the return stemming from labor reallocation that increased off-farm income. This study highlights the policy relevance of irrigation investments in improving agricultural productivity and accelerating rural transformation under climate change. |
| Keywords: | irrigation investment, agricultural productivity, labor reallocation, climate change |
| JEL: | C23 O13 O15 Q12 Q54 |
| Date: | 2025–02–18 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123705 |
| By: | Trevor Fitzpatrick; Seamus Kelly; Patrick Carey; David Walsh; Ruairi Nugent |
| Abstract: | The emergence of Generative AI (Gen AI) has motivated an interest in understanding how it could be used to enhance productivity across various tasks. We add to research results for the performance impact of Gen AI on complex knowledge-based tasks in a public sector setting. In a pre-registered experiment, after establishing a baseline level of performance, we find mixed evidence for two types of composite tasks related to document understanding and data analysis. For the Documents task, the treatment group using Gen AI had a 17% improvement in answer quality scores (as judged by human evaluators) and a 34% improvement in task completion time compared to a control group. For the Data task, we find the Gen AI treatment group experienced a 12% reduction in quality scores and no significant difference in mean completion time compared to the control group. These results suggest that the benefits of Gen AI may be task and potentially respondent dependent. We also discuss field notes and lessons learned, as well as supplementary insights from a post-trial survey and feedback workshop with participants. |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2502.09479 |
| By: | Amann, Juergen; Grover, Arti Goswami |
| Abstract: | This paper analyzes the impact of changes in energy prices on the competitiveness of manufacturing firms in Chile. Using the Chilean Annual National Industrial Survey data, the paper illustrates that, first, increases in energy prices generally do not hurt firm competitiveness. Second, the impact of energy prices depends on the fuel type—while electricity price increases are negatively correlated with firm outcomes, fossil fuel price increases have a positive association with investment and firm productivity, a result that is consistent with the strong version of the Porter hypothesis. Third, these effects are heterogeneous and vary by firm attributes such as size, ownership and location. Fourth, investigating non-linear patterns in firm outcomes based on the level of energy prices, the findings show that the positive correlation between fossil fuel price increases and capital upgrading is particularly pronounced when energy prices are at relatively low levels. |
| Date: | 2023–05–08 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10436 |
| By: | Brucal, Arlan Zandro Ilagan; Grover, Arti Goswami |
| Abstract: | Most crises have a disproportionately larger negative effect on micro-sized firms. Yet, the heterogeneity of impact within micro-sized firms is lesser known. Using five waves of the World Bank's Business Pulse Survey data, this paper finds that firms with zero to four employees have a much larger drop in sales and slower recovery rate compared to micro-sized firms with five to nine employees. The overall differences in the resilience between the two groups of micro-sized firms could potentially be due to a uniformly lower productivity level of firms with zero to four employees. Within the two groups of micro-sized firms, resilience is correlated with their liquidity position, managerial attitudes as well as their abilities. Using discriminant analysis, this paper confirms that a significant proportion of micro-sized firms mimic the behavior of larger firms in terms of their resilience to shocks and could potentially be “misclassified” as micro-sized. These findings have important implications for targeting and tailoring support for enhancing businesses' resilience to shocks. |
| Date: | 2023–08–28 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10556 |
| By: | Dizon, Felipe Jr Fadullon; Imtiaz, Muhammad Saad; Yu, Jisang |
| Abstract: | This paper uses two years of agriculture census data to build a panel dataset that consists of all the small towns in Bhutan. This dataset is used to estimate the impact of irrigation gaps and drought on the yields of paddy, maize, and other crops. The paper compares the estimated impacts from a panel fixed effects model and a spatial first differences model. The findings show that irrigation gaps reduce paddy yields and droughts reduce maize yields. Estimates from the spatial first differences model are found to be consistent relative to those from the panel fixed effects model. The paper further finds that water constraints reduce yields of vegetable crops, and other constraints, such as labor shortages, wild animals, insects, and diseases, also reduce the yields of cereal crops. |
| Date: | 2023–04–17 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10410 |
| By: | Dalvit, Nicolo; Iootty De Paiva Dias, Mariana; Melecky, Martin; Srinivasan, Nithya |
| Abstract: | This paper studies the effect of Russia’s invasion of Ukraine on the performance of firms in Central Asia. It uses unique data from the Business Pulse Survey run by the World Bank in the Kyrgyz Republic, Tajikistan, and Uzbekistan, which tracks the sales and employment—along with other main characteristics—of about 1, 200 to 1, 800 firms in a panel structure. The survey contains two waves before and one wave after Russia’s invasion of Ukraine. Using the difference-in-differences methodology in a regression setup, the analysis finds that Central Asian firms with pre-invasion trade links to Russia suffered greater drops in sales and employment after the invasion—even though exporters to Russia may have experienced, on average, higher sales during the studied period. Considering the pre-invasion digitization of firms, the findings show that digitization helped firms increase their average employment during the studied period. However, the analysis does not find any significant mitigating effect of digitalization associated with the impact of the invasion. |
| Date: | 2023–08–29 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10557 |
| By: | Amin, Mohammad; Jolevski, Filip; Islam, Asif Mohammed |
| Abstract: | This study analyzes the difference in the decline in sales between small and medium-size enterprises and large firms (the “gap”) following the outbreak of COVID-19 in 19 developing countries. The decline in sales as a percentage of the pre-pandemic level was bigger for small and medium-size enterprises by 12.2 percentage points. The paper uses the Kitagawa-Oaxaca-Blinder and quantile decomposition methods to estimate individual factors’ contributions to the gap at the mean and across the sales decline distribution. Several important results emerge. First, relative to large firms, small and medium-size enterprises faced greater incidence of input supply disruptions during the pandemic, had lower initial labor productivity levels, and were concentrated in country-industry cells with a bigger sales declines. These differences in the level of factors widened the gap. Small and medium-size enterprises also suffered more than large firms from a given level of financial constraints, input supply disruptions, and country-industry-specific factors, and benefitted less from a given level of initial labor productivity. These differences in the returns to factors also widened the gap. Second, the gap was much larger at the relatively high quantiles of sales decline distribution, indicating that relative to large firms, small and medium-size enterprises were much less resilient to large shocks than small shocks. Third, individual factors’ contribution to the gap varied across the sales decline distribution. Thus, the optimal policy mix depends on the size of the shock. Fourth, there were some important differences between geographical regions in what drove the gap. Thus, an eclectic policy approach is needed that duly accounts for the prevailing local conditions. |
| Date: | 2023–09–08 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10562 |
| By: | Nunez Chaim, Gonzalo Ignacio; Overman, Henry George; Riom, Capucine Anne Veronique |
| Abstract: | We evaluate the impact of the UK's Growth Vouchers Programme, which offered subsidised business advice to 15, 207 randomly selected small and medium size enterprises. Using administrative and survey data, we show that the programme increased turnover by 8.2% but only in the short-term and potentially at the expense of non-supported firms. We find that subsidised advice appears to improve firms' capabilities and practices in a way that is consistent with the increase in turnover. We also demonstrate that propensity score matching introduces a sizeable upward bias to estimated effects on turnover and employment and that this bias grows over time. |
| Keywords: | firm performance; enterprise growth; entrepreneurship; industrial strategy |
| JEL: | D24 L25 M13 O12 L20 D20 |
| Date: | 2024–01–29 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126834 |
| By: | Iimi, Atsushi |
| Abstract: | Transport connectivity is an important determinant of agglomeration economies and urbanization. However, measuring its impacts is a complex task when causality is considered. An important empirical challenge comes from potential endogeneity of infrastructure placement. To deal with the endogeneity problem, first, the paper constructs detailed georeferenced connectivity measurements based on micro shipping data collected over 10 years. Then, the system generalized method of moments regression is applied. Using unique data from the Caucasus and Central Asian countries, the paper estimates the impact of transport connectivity on agglomeration economies. It finds that agglomeration economies are significant and persistent in the region. Thus, the existing firm clusters are likely to continue growing. However, a constraint is also found. Large cities exhibit congestion diseconomies. Finally, the paper shows that the improvement of transport connectivity, especially local market accessibility, has a significant effect on agglomeration. By contrast, no clear evidence to support the impact of improved regional connectivity on agglomeration is observed yet. To take full advantage of agglomeration economies at the regional level, further efforts may be needed, for instance, toward increasing efficiency in transportation and logistics, improving the freight load, and/or reducing the time and costs of border crossing, which add to overall transport costs and times. |
| Date: | 2023–07–31 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10534 |
| By: | Arntz, Melanie; Böhm, Michael; Graetz, Georg; Gregory, Terry; Lehmer, Florian; Lipowski, Cäcilia |
| Abstract: | This study investigates how crises affect firms' adoption of frontier technologies using the Covid-19 pandemic as a case study. The analysis tracks the nature, timing, and pandemic-related motivations of investments among German firms, using longitudinal survey data linked with administrative worker-firm records. We find clear evidence for a shift toward remote work technologies that helped firms mitigate negative employment effects. Overall, however, the pandemic slowed down the diffusion of new technologies. This procyclical pattern of technology adoption is particularly striking since the pandemic created strong incentives to experiment with new technologies. |
| Keywords: | Firm-level technology investments, cyclicality of technology adoption, Covid-19 crisis |
| JEL: | O33 E22 E32 J23 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:312176 |
| By: | Ohnsorge, Franziska Lieselotte; Quaglietti, Lucia |
| Abstract: | International trade has been an important engine of output and productivity growth historically. But since the global financial crisis, world trade growth has slowed, reflecting cyclical and structural forces. The COVID-19 pandemic and Russia’s invasion of Ukraine have further disrupted commodity markets, global supply chains and the trade that accompanies them. A removal of impediments that raise trade costs could reinvigorate world trade. Trade costs, on average, roughly double the cost of internationally traded goods relative to domestically sold goods. Tariffs amount to only one-twentieth of average trade costs; the bulk are incurred in shipping and logistics, and trade procedures and processes at and behind the border. Despite a decline since 1995, trade costs remain about one-half higher in EMDEs than in advanced economies; about two-fifths of this gap appears to be due to higher shipping and logistics costs and a further two-fifths due to trade policy. A comprehensive reform package to lower trade costs could yield large dividends. It is estimated that among the worst-performing EMDEs, a hypothetical reform package to improve logistics and maritime connectivity to the standards of the best-performing EMDEs would halve trade costs. |
| Date: | 2023–03–10 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10356 |
| By: | Loske, Dominic; Mangiaracina, Riccardo; Regattieri, Alberto; Klumpp, Matthias |
| Abstract: | Increasing labor cost levels and workforce shortages have caused retailers to pay increased attention to their order‐fulfillment operations, which continue to largely depend on manual order picking systems. The operations and logistics management literature suggests that optimizing tertiary packaging, which groups products into full unit loads for storage and shipping, is an important way to improve order picking performance. While most retailers handle products at the level of secondary packaging when fulfilling orders, this packaging level remains largely unexplored. To address this gap, we analyze 3, 380, 596 picks performed by 185 order pickers of 4957 products in a grocery retail warehouse in Germany. Our findings indicate that secondary packaging characteristics directly affect order picking performance and that this effect is moderated by traditional product characteristics (e.g., product weight and volume), as well as elements of warehouse design (e.g., pick and stack levels). From a managerial perspective, our findings may help to bridge the gap between logistics managers and packaging engineers and provoke further research on the trade‐off between operational and environmental performance. |
| Date: | 2025–02–21 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:153213 |
| By: | Pascal Stiefenhofer |
| Abstract: | The integration of Artificial General Intelligence (AGI) into economic production represents a transformative shift with profound implications for labor markets, income distribution, and technological growth. This study extends the Constant Elasticity of Substitution (CES) production function to incorporate AGI-driven labor and capital alongside traditional inputs, providing a comprehensive framework for analyzing AGI's economic impact. Four key models emerge from this framework. First, we examine the substitution and complementarity between AGI labor and human labor, identifying conditions under which AGI augments or displaces human workers. Second, we analyze how AGI capital accumulation influences wage structures and income distribution, highlighting potential disruptions to labor-based earnings. Third, we explore long-run equilibrium dynamics, demonstrating how an economy dominated by AGI capital may lead to the collapse of human wages and necessitate redistributive mechanisms. Finally, we assess the impact of AGI on total factor productivity, showing that technological growth depends on whether AGI serves as a complement to or a substitute for human labor. Our findings underscore the urgent need for policy interventions to ensure economic stability and equitable wealth distribution in an AGI-driven economy. Without appropriate regulatory measures, rising inequality and weakened aggregate demand could lead to economic stagnation despite technological advancements. Moreover this research suggests a renegoation of the Social Contract. |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2502.07044 |
| By: | Macedoni, Luca; Morrow, John; Tyazhelnikov, Vladimir |
| Abstract: | Which products are potentially produced together? When demand for a product increases, which firms will supply it? Using multi-product production patterns within and across firms, we recover a continuous cost based distance between firms and unproduced products. Higher product distance implies decreasing adoption frequency. When export demand induces domestic product adoption, closer firms provide this supply. Potential costs imply measures of Revenue and Competition Potential. These predict firm sales growth, scope growth and core focus. If all firms produced all products linked by co-production, consumer welfare would increase by 10-30%. |
| Keywords: | multi-product firms; firm capabilities; product classification; product space; growth paths |
| JEL: | F1 D2 L1 L23 L25 |
| Date: | 2024–02–02 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126833 |