01851cas a2200253 a 4500 AALejournalIMF018439 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484353578 1018-5941 BD-DhAAL BD-DhAAL Misch, Florian. Resource Misallocation and Productivity : Evidence from Mexico / Florian Misch, Christian Saborowski. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper explores the role for specific structural distortions in explaining Mexico's weak productivity growth through the resource misallocation channel. The paper makes two contributions. First, we validate the approach of measuring misallocation indirectly (Hsieh and Klenow, 2009) by illustrating a close correlation between misallocation and per capita incomes across Mexican states. Second, we exploit the large variation in resource misallocation within industries and across states together with unusually rich data at the firm, local, and industry level to shed light on its determinants. We identify several well-defined distortions that have a statistically and economically meaningful effect on productivity via resource misallocation. Mode of access: Internet Saborowski, Christian. IMF Working Papers; Working Paper ; No. 2018/112 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/112/001.2018.issue-112-en.xml IMF e-Library