01944nam a22002777u 4500 pwiiw3902 OSt 20260518120109.0 160214t2016 au ||||| |||| 00| ||eng d OSt eng D24 O47 L25 jelc Caraiani, Petre A quantitative explanation of the low productivity in South-Eastern European economies: the role of misallocations Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2016. wiiw Balkan Observatory Working Papers 119 Abstract It is well known that Southeast Europe is the least developed area in Europe. Using a methodology based on the idea of heterogeneous firms, this paper studies the degree to which firm heterogeneity and resource misallocation can explain the lower TFP in Southeast Europe. The results show a significant degree of heterogeneity and resource misallocation, although the results are sensitive to the calibration used. There are evidences that firm-level productivity depends on firm size, while taxation negatively influences it. There is also some evidence that foreign-owned firms are more competitive, as are exporting firms. Results are generally robust across the various specifications used, but less so relative to the measure of productivity used. Additional evidences suggest that infrastructure-related obstacles as well as institutional instability drive the output distortion, while no factor is underlined as a significant driver of capital distortions, suggesting the need for better data sources for the latter. total factor productivity firm heterogeneity South East Europe SEE Macroeconomic Analysis and Policy 119 WIIW0000140 wiiw Balkan Observatory Working Papers https://wiiw.ac.at/p-3902.html P z 8768 8768 0 0 0 0 BIB BIB 1 2016-02-14 pwiiw3902 0 119 1000010003902 2016-02-14 00:00:00 2019-02-05 P