IGC Evidence Paper – Firms

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The IGC Firm Capabilities Research Programme pulls economists with a common interest in firm capabilities together to focus on three core questions: (i) what are the key proximate determinants of firm productivity? (ii) Where does the productive capacity of firms originate? (iii) What are the barriers that prevent resources from moving from unproductive firms and sectors to areas of higher productivity? In addition to the focus on larger firms within the manufacturing and service sector, small firms (and farms) are also examined to reflect the fact that the majority of citizens in developing countries are not employed by large firms.