Taxing the good? distortions, misallocation, and productivity in Sub-Saharan Africa
This paper uses comprehensive and comparable firm-level manufacturing censuses from 4 Sub-Saharan African
Abstract
This paper uses comprehensive and comparable firm-level manufacturing censuses from 4 Sub-Saharan African (SSA) countries to examine the extent, costs, and nature of within-industry resource misallocation between heterogeneous production units. This paper finds evidence of severe misallocation in which resources are diverted away from high-productivity firms towards low-productivity ones, although the magnitude differs across countries. Estimated aggregate productivity gains from the hypothetical equalization of marginal returns range from 30 percent in CĂ´te d바카라 사이트™Ivoire to 160 percent in Kenya. The magnitude of reallocation gains appears considerably lower when performing the same counterfactual exercise based on the World Bank Enterprise Surveys once the value-added shares of industries are adjusted using the census data. This suggests that linking firm-level survey data to aggregate outcomes requires census-type data or sampling methods that take the true structure of production into account.
This is an output of the World Bank바카라 사이트™s Strategic Research Program
Citation
Xavier Cirera, Roberto Fattal-Jaef, Hibret Maemir, Taxing the Good? Distortions, Misallocation, and Productivity in Sub-Saharan Africa, The World Bank Economic Review, Volume 34, Issue 1, February 2020, Pages 75바카라 사이트“100, https://doi.org/10.1093/wber/lhy018