Micro Drivers of Productivity Growth: A Firm-Level Analysis

No AccessJan 2023Micro Drivers of Productivity Growth: A Firm-Level AnalysisAuthors/Editors: Mariana Iootty, Asset Bizhan, and Paulo G. CorreaMariana IoottySearch for more papers by this author, Asset BizhanSearch for more papers by this author, and Paulo G. CorreaSearch for more papers by this authorhttps://doi.org/10.1596/978-1-4648-1910-0_ch2AboutView ChaptersFull TextPDF (0.8 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract: Confirms a pattern of muted total factor productivity (TFP) growth in both manufacturing and services in Kazakhstan, with a modest expansion in the most recent years, drawing from administrative firm-level data shared by the government for analyses between 2009 and 2018, using TFP as the key performance measure (World Bank, 2021a). After recovering from the global financial crisis of 2007–09, Kazakhstan’s productivity growth started to slow in the early 2010s, and declined even more with the economic crisis of 2014 following the fall in oil prices and a major devaluation, which weakened domestic demand and contributed to a gradual deterioration of potential output. Firm-level data confirm a decline in TFP between 2010 and 2015 in both manufacturing and services. More recently, TFP growth has started to bounce back, possibly driven by the recovery in commodity prices. Between 2015 and 2018, TFP grew by 1.1 percent in the manufacturing sector and 0.4 percent in the services sector. ReferencesDavies, E, A Sakhonchik, and P Correa. 2021. “Drivers of Productivity Growth in Kazakhstan.” World Bank, Washington, DC. Google ScholarEslava, M, J Haltiwanger, and A Pinzón. 2019. “Job Creation in Colombia vs the US: “Up or Out Dynamics” Meets “The Life Cycle of Plants.” Working Paper 25550, National Bureau of Economic Research, Cambridge, MA. Google ScholarHopenhayn, H 1992. “Entry, Exit, and Firm Dynamics in Long Run Equilibrium.” Econometrica 60 (5): 1127–50. Google ScholarHsieh, C-T and P J Klenow. 2014. “The Life Cycle of Plants in India and Mexico.” Quarterly Journal of Economics 29 (3): 1035–84. Google ScholarJovanovic, B 1982. “Selection and the Evolution of Industry.” Econometrica 50 (3): 649–70. Google ScholarKaralashvili, N and K Ueda. 2021. “Insights into the Private Sector of Kazakhstan.” World Bank, Washington, DC. Google ScholarMelitz, M and S Polanec. 2015. “Dynamic Olley-Pakes Productivity Decomposition with Entry and Exit.” RAND Journal of Economics 46 (2): 362–75. Google ScholarWorld Bank. 2021. “Enterprise Surveys Follow-Up on COVID-19: Kazakhstan.” World Bank Group, Washington, DC. Google Scholar Previous chapterNext chapter FiguresreferencesRecommendeddetails View Published: January 2023ISBN: 978-1-4648-1910-0 Copyright & Permissions Related CountriesKazakhstanRelated TopicsEnergyIndustry KeywordsCASE STUDYTOTAL FACTOR PRODUCTIVITYMANUFACTURING SECTORDRIVERS OF CHANGESERVICES INDUSTRYGLOBAL FINANCIAL CRISIS PDF DownloadLoading ...