Creative Destruction and Policy Reforms : Changing Productivity Effects of Firm Turnoverin Moroccan Manufacturing

Hallward-Driemeier, Mary ; Thompson, Fraser

关键词: ACCOUNTING;    AGGLOMERATION EFFECTS;    AGGREGATE FLUCTUATIONS;    AGGREGATE PERFORMANCE;    AGGREGATE PRODUCTIVITY;   

DOI  :  10.1596/1813-9450-5085
RP-ID  :  WPS5085

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

How important is firm turnover tonational productivity growth? The literature points to thecontribution of creative destruction being strongest in moredeveloped countries or where market institutions arestrongest. This paper looks at the case of Morocco, spanning16 years, during which reform initiatives aiming tostrengthen market forces were introduced. The paper arguesthat it is important to take into account i) the timing ofhow decompositions are structured (capturing the effects ofhigh growth among young firms as part of the benefit ofincreased entry) and ii) the additional indirect impacts offirm dynamics on agglomeration externalities andcompetition. The paper shows there are striking differencesin the productivity paths of entering and exiting firmscompared with incumbents, and that restricting the timehorizon of productivity decompositions to the actual year ofentry or exit underestimates the productivity effects ofturnover. Although it has been hypothesized that conductingdecompositions over longer horizons would increase thepositive contribution of net turnover, this is not the casein Morocco as losses from exiting firms rise too. Nor hasthe net contribution of turnover increased with marketreforms; if anything, the contribution has declined overtime. But the allocation of resources has improved. Bothtechnical and allocative efficiency have risen since themid-1990s. The paper also shows that firm turnover affectsproductivity through additional channels. It is closelycorrelated with measures of agglomeration that areassociated with higher rates of exit among unproductivefirms, and turnover itself is positively associated withsubsequent productivity growth of incumbents.