2020
DOI: 10.1111/ecot.12260
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Structural change and misallocation: Firm‐level evidence from Poland*

Abstract: Early transition literature linked a large number of firm failures with the inability to overcome the pre-transition misallocation of resources, that is, the inadequate capital-labour ratio. We look at the link between misallocation and firm survival using a rich firm-level dataset of over 1,600 manufacturing plants established in a centrally planned economy after 1945. Our duration models include the standard Olley-Pakes misallocation measures as well as a firm-level measure of the counterfactual level of cap… Show more

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