Good Business Practices Improve Productivity in Myanmar’s Manufacturing Sector
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Good Business Practices Improve Productivity in Myanmar’s Manufacturing Sector. / Falco, Paolo; Hansen, Henrik; Rand, John; Tarp, Finn; Trifković, Neda.
I: Journal of Development Studies, Bind 59, Nr. 8, 2023, s. 1258-1282.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Good Business Practices Improve Productivity in Myanmar’s Manufacturing Sector
AU - Falco, Paolo
AU - Hansen, Henrik
AU - Rand, John
AU - Tarp, Finn
AU - Trifković, Neda
N1 - Publisher Copyright: © 2023 UNU-WIDER. Published by Informa UK Limited, trading as Taylor & Francis Group.
PY - 2023
Y1 - 2023
N2 - We investigate the relationship between business practices and enterprise productivity using panel data with matched employer and employee information from Myanmar. The data show that micro, small, and medium-sized manufacturing enterprises in Myanmar typically adopt only a few modern business practices, and the persistence in the use is extremely low. Even so, we find a positive and economically important association between business practices and productivity. Specifically, the empirical results show that a one standard deviation difference in applied business practices (equivalent to applying an additional 4 to 5 of the 20 business practices in focus) is associated with an 8–10 per cent difference in labour productivity. Utilising the employer–employee information to estimate Mincer-type wage regressions, we find that workers receive about half to two-thirds of the productivity gain in higher wages. Overall, our findings support the notion of business practices as a production technology, and we find that workers and managers split the productivity gains evenly.
AB - We investigate the relationship between business practices and enterprise productivity using panel data with matched employer and employee information from Myanmar. The data show that micro, small, and medium-sized manufacturing enterprises in Myanmar typically adopt only a few modern business practices, and the persistence in the use is extremely low. Even so, we find a positive and economically important association between business practices and productivity. Specifically, the empirical results show that a one standard deviation difference in applied business practices (equivalent to applying an additional 4 to 5 of the 20 business practices in focus) is associated with an 8–10 per cent difference in labour productivity. Utilising the employer–employee information to estimate Mincer-type wage regressions, we find that workers receive about half to two-thirds of the productivity gain in higher wages. Overall, our findings support the notion of business practices as a production technology, and we find that workers and managers split the productivity gains evenly.
KW - Business practices
KW - management
KW - MSME
KW - Myanmar
KW - productivity
U2 - 10.1080/00220388.2023.2218002
DO - 10.1080/00220388.2023.2218002
M3 - Journal article
AN - SCOPUS:85165635967
VL - 59
SP - 1258
EP - 1282
JO - Journal of Development Studies
JF - Journal of Development Studies
SN - 0022-0388
IS - 8
ER -
ID: 361593641