RG-T2582 : Local Government and Firm productivity

This TC has three aims. First, it will document systematic differences in firm productivity across municipalities within at least two metropolitan regimes in LAC. Second, to better understand the link between local public policy and firm productivity, it will identify the specific features of firms that distinguish high and low productivity enterprises. To facilitate this, the focus will be on a large sample of firms from narrowly-defined sectors of the economy. In particular, since the LAC productivity lag with respect to the rest of the world is most notable in the service sector, the firms from a few service sub-sectors will be analyzed. Third, exhaustive information will be collected to understand the contribution of local government to firm productivity, including the types of local regulations that impinge on firm activity and the way that those regulations are implemented.