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Reproducibility package for Entry Barriers, Idiosyncratic Distortions, and the Firm Size Distribution

2022
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Reference ID
PP_WLD_2022_PRWP-9027_v01
DOI
https://doi.org/ https://doi.org/10.3886/E123043V1
Author(s)
Roberto N. Fattal-Jaef
Collections
Journal articles
Metadata
JSON
Created on
Jul 06, 2023
Last modified
Jul 25, 2023
  • Project Description
  • Downloads
  • Overview
  • Reproducibility Package
  • Description
  • Scope and coverage
  • Disclaimer
  • Access and rights
  • Contacts
  • Information on metadata
  • Citation
  • Overview

    Abstract

    This paper studies the interaction between barriers to firm entry and distortions to allocative efficiency in a standard model of firm dynamics. We derive a strategy to infer entry barriers based on cross-country differences in the firm size distribution and idiosyncratic distortions. The inferred barriers resemble regulation-based indicators in advanced economies but are substantially higher in middle- and low-income countries. Regulation-based indicators cannot account for cross-country differences in average firm size and underestimate the aggregate productivity gains associated with their removal by up to 8 percent on average.

    Reproducibility Package

    Scripts
    Readme Get Reproducibility Package
    Link: https://reproducibility.worldbank.org/index.php/catalog/9/download/10/README.pdf
    Reproducibility package (data and code) for Entry Barriers, Idiosyncratic Distortions, and the Firm Size Distribution
    Title
    Reproducibility package (data and code) for Entry Barriers, Idiosyncratic Distortions, and the Firm Size Distribution
    Date
    2022-04
    Software
    R, GNU Fortran
    Dependencies
    R: dplyr, haven, foreign, ggplot2, ggrepel, gridExtra, modeest
    Instructions
    See readme in the reproducibility package
    Repository
    AEA data and code repository (ICPSR)
    Notes
    Checked for reproducibility externally at the journal
    License
    Name URL
    Creative Commons Attribution 4.0 International (CC BY 4.0) License https://creativecommons.org/licenses/by/4.0/
    Source code repository
    Repository name URI
    AEA Data and Code Repository https://www.openicpsr.org/openicpsr/aea
    Software
    R
    Name
    R
    Version
    3.6.3
    GNU Fortran
    Name
    GNU Fortran
    Version
    9.3.0

    Reproducibility

    Technology environment

    x86 64-pc-linux-gnu (64-bit)

    Reproduction instructions

    A readme file with detailed instructions is part of the (external) reproducibility package.

    Data

    Data statement

    The data for this project is composed of the various firm-level databases, the Penn World Tables for aggregate data, the Doing Business Indicators for the regulation based barriers to entry, and the Small Business Administration for inferring the US’s distribution of firm shares across 2 digit industries. The firm level databases are composed of commercial, confidential, and publicly accessible sources. The commercial database is AMADEUS, which is developed by Bureau Van Dijk (van Dijk, 2018). These can be purchased from the developer or accessed through an affiliation with an institution with an active membership to the data. As explained in the data appendix of the article, the countries selected from AMADEUS for the analysis are: Bulgaria, Belgium, Finland, Portugal, Spain, Latvia, France, Hungary, Romania, and Italy. There are a number of firm-level censuses whose access is confidential, due to agreements between the corresponding statistical agencies and the World Bank. The firm-level Censuses in this category are: El Salvador (2005) , Kenya (2010) , Ethiopia (2010) , Ghana (2003) , Peru (2008) , Pakistan (2005) , Bangladesh (2012) , and Malaysia (2015) . The remaining firm-level datasets are freely accessible from the countries’ statistical agency websites.

    Confidentiality

    Yes, please refer to the data statement and the readme file.

    Description

    Output
    Entry Barriers, Idiosyncratic Distortions, and the Firm Size Distribution
    Type
    Published Paper
    Title
    Entry Barriers, Idiosyncratic Distortions, and the Firm Size Distribution
    Authors
    Roberto N. Fattal-Jaef
    URL
    https://www.aeaweb.org/articles?id=10.1257/mac.20200234
    DOI
    https://doi.org/10.1257/mac.20200234
    Authors
    Author Affiliation Email
    Roberto N. Fattal-Jaef Development Research Group, Macroeconomics and Growth, The World Bank rfattaljaef@gmail.com
    Date of production

    2022-04

    Scope and coverage

    Geographic locations
    Location Code
    World WLD
    Topics
    ID Topic Vocabulary Vocabulary URI
    D21 Firm Behavior: Theory JEL Classifications
    D24 Production • Cost • Capital • Capital, Total Factor, and Multifactor Productivity • Capacity JEL Classifications
    H25 Business Taxes and Subsidies JEL Classifications
    L11 Production, Pricing, and Market Structure • Size Distribution of Firms JEL Classifications
    L60 General JEL Classifications

    Disclaimer

    Disclaimer

    The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/the World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.

    Access and rights

    License
    Name URI
    Creative Commons Attribution 4.0 International (CC BY 4.0) License https://creativecommons.org/licenses/by/4.0/

    Contacts

    Contacts
    Name Role Affiliation Email URI
    Roberto N. Fattal-Jaef Author World Bank rfattaljaef@gmail.com
    Reproducibility WBG reproducibility@worldbank.org

    Information on metadata

    Producers
    Name Abbreviation Affiliation
    Krestel CK World Bank
    Date of Production

    2023-06-30

    Citation

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