BANGLADESH, DHAKA - JUNE 17 : The capital city of Dhaka. Textile factory in Savar, in the suburbs of Dhaka where work about six thousands employees. Dhaka is the capital of Bangladesh in June 17, 2015 in Dhaka, Bangladesh (Photo by Frédéric Soltan /Corbis via Getty Images).
IGC Evidence Paper - Firms, trade, and productivity
Authors
Stefano Caria
Professor of Economics, University of Oxford
Dave Donaldson
Professor of Economics, Massachusetts Institute of Technology
Namrata Kala
Associate Professor, Massachusetts Institute of Technology
Imran Rasul
Professor of Economics, University College London
Matthieu Teachout
Researcher
Eric Verhoogen
Professor of International and Public Affairs and Economics, Columbia University
Christopher Woodruff
Professor of Development Economics, University of Oxford-
IGC Firms, trade, and productivity Evidence paper July 2024.pdf
PDF document • 5.14 MB
This paper reviews the role of firm-level productivity in driving sustainable economic growth, particularly in low- and middle-income countries. It emphasises the importance of total factor productivity and its direct and indirect impacts on economic development. The review explores how climate change and environmental degradation pose risks to productivity while highlighting the need for resilient firms and innovative practices to sustain growth. Key areas of focus include the adoption of technology, improvement of management practices, and the reduction of market distortions. Given that productivity growth stems from numerous micro-level changes, including the reduction of critical distortions, it reviews existing evidence on these transformations and highlights priorities for future research.