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Good Business Practices Improve Productivity in Myanmar's Manufacturing Sector.
- Source :
- Journal of Development Studies; Aug2023, Vol. 59 Issue 8, p1258-1282, 25p, 9 Charts, 1 Graph
- Publication Year :
- 2023
-
Abstract
- 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. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 00220388
- Volume :
- 59
- Issue :
- 8
- Database :
- Complementary Index
- Journal :
- Journal of Development Studies
- Publication Type :
- Academic Journal
- Accession number :
- 169769298
- Full Text :
- https://doi.org/10.1080/00220388.2023.2218002