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Boosting Productivity Growth in Small Firms

A large and growing fraction of workers receive wages that are insuficient to lift themselves and their families out of poverty. Such low wages are to a large extent related to the low productivity of the jobs performed by these workers, which in turn are related to the poor productivity of the firms in which these workers are employed. In fact, there is a large correlation between receiving a low wage and being employed in a small firm. This project seeks to understand the reasons behind the low productivity levels and growth of small firms in Latin America as a precondition to lift a large number of workers from poverty and improve the dismal productivity performance of many Latin American economies. A number of competing hypothesis would be examined, among them the following: (1) insufficient access to capital, (2) Unfair competition of large firms towards small firms driven by poor or inexisting defense of competition laws and institutions (3) Inequal access to information or inputs; (4) low human capital of workers and managers.

Project Detail

Country

Regional

Project Number

RG-T1301

Approval Date

September 21, 2007

Project Status

Closed

Project Type

Technical Cooperation

Sector

PRIVATE FIRMS AND SME DEVELOPMENT

Subsector

MICROENTERPRISE DEVELOPMENT

Lending Instrument

-

Lending Instrument Code

-

Modality

-

Facility Type

-

Environmental Classification

-

Total Cost

USD 145,000.00

Country Counterpart Financing

USD 0.00

Original Amount Approved

USD 145,000.00

Financial Information
Operation Number Lending Type Reporting Currency Reporting Date Signed Date Fund Financial Instrument
ATN/SF-10594-RG Sovereign Guaranteed USD - United States Dollar Fund for Special Operations Nonreimbursable
Operation Number ATN/SF-10594-RG
  • Lending Type: Sovereign Guaranteed
  • Reporting Currency: USD - United States Dollar
  • Reporting Date:
  • Signed Date:
  • Fund: Fund for Special Operations
  • Financial Instrument: Nonreimbursable
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