MPFD working paper on Obstacles to productivity in Asia and Pacific region: finance reigns
Firms face difference obstacles for their development. This paper investigates which obstacle is the largest to firms’ productivity using micro-level data for the Asia and Pacific region. Access to finance shows the most robust result in our investigation, being stronger for SMEs. Removing SMEs’ credit constraints seem to be a powerful tool to promote economic growth in the region, particularly in the manufacturing sector.