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This paper uses comprehensive and comparable firm-level manufacturing census data from four Sub-Saharan African countries to examine the extent, costs, and nature of within-industry resource misallocation across heterogeneous firms. The paper finds evidence of severe misallocation in which resources are diverted away from high-productivity firms toward low-productivity ones in all four countries, although the magnitude differs across countries. The...
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Citation

Cirera,Xavier; Fattal Jaef,Roberto N.; Maemir,Hibret Belete.

Taxing the good ? distortions, misallocation, and productivity in Sub-Saharan Africa (English). Paper is funded by the Strategic Research Program (SRP)|Policy Research working paper|no. WPS 7949 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/492891485178180375

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