In this paper published in the American Economic Review, Bustos, Caprettini and Ponticelli (2016) study the effects of the adoption of new agricultural technologies on structural transformation.
In this paper, Kamutando (2019) examines the link between financial constraints, misallocation and firm growth in the informal manufacturing sector in Zimbabwe.
When contracting institutions are weak or exploitable, firms in developing countries rely on a mixture of social and formal heuristics to select business partners.
Economic growth requires confidence in the state's ability to enforce secure exchange. But when states selectively enforce rule of law, political considerations can moderate the trust that buyers have in sellers.
Property rights are important for economic exchange, but in much of the world they are not publicly guaranteed. Private market associations can fill this gap by providing an institutional structure to enforce agreements, but with this power comes the ability to extort from group members.
Alfonsi, Bandiera, Bassi, Burgess, Rasul, Sulaiman and Vitali (2019) design a labor market experiment to compare demand- and supply-side policies to tackle youth unemployment, a key issue in low-income countries.
A commonly held and highly intuitive view is that intensified competition will improve the allocation of resources in an economy, by shifting resources to more productive firms.
The strength of contract enforcement determines how firms source inputs and organize production. Using microdata on Indian manufacturing plants, Boehm and Oberfield (2018) show that production and sourcing decisions appear systematically distorted in states with weaker enforcement.
Landmine contamination affects the lives of millions in many conflict-ridden countries long after the cessation of hostilities. Yet, little research exists on its impact on post-conflict recovery.
Firms in developing countries often avoid paying taxes by making informal payments to tax officials. These bribes may raise the cost of operating a business, and the price charged to consumers.
