Over the last half-century, per capita income in Latin America has stagnated relative to the United States and other benchmarking countries. Growth accounting techniques reveal that slow productivity growth is at the root of this weak performance, calling for detailed analyses and appropriate and timely policy responses. In addition to macroeconomic and regulatory factors, productivity depends crucially on microeconomic aspects and on the specific strategies and decisions of individual firms, though such microeconomic decisions have been seldom studied in a quantitative and comparative manner. This chapter focuses on this issue, highlighting the presence of heterogeneity across firms in the region and introducing the specific analysis of the drivers of this heterogeneity which is contained in the following chapters.
Grazzi, M., Pietrobelli, C., & Szirmai, A. (2016). Determinants of enterprise performance in Latin America and the Caribbean: What does the micro-evidence tell us? In Firm Innovation and Productivity in Latin America and the Caribbean: The Engine of Economic Development (pp. 1–36). Palgrave Macmillan. https://doi.org/10.1057/978-1-349-58151-1_1