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Drivers of bad management: evidence from Mexican firms

Author

Listed:
  • Nicholas Bloom
  • Leonardo Iacovone
  • Mariana Pereira-Lopez
  • John Van Reenen

Abstract

The management of firms in developing countries is typically of lower quality than in richer parts of the world. A study of Mexico by Nicholas Bloom, Leonardo Iacovone, Mariana Pereira-López and John Van Reenen indicates that misallocation (too many resources staying in badly run firms) is a key driver of these differences. Weak competition and inadequate rule of law seem to lie behind the difficulties that even well-managed firms have in growing.

Suggested Citation

  • Nicholas Bloom & Leonardo Iacovone & Mariana Pereira-Lopez & John Van Reenen, 2022. "Drivers of bad management: evidence from Mexican firms," CentrePiece - The magazine for economic performance 640, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepcnp:640
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    File URL: https://cep.lse.ac.uk/pubs/download/cp640.pdf
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