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Firm Productivity in Bangladesh Manufacturing Industries
This paper studies the determinants of total factor productivity (TFP) for manufacturing firms in Bangladesh using data from a recent survey. the author obtains TFP measures by making use of firm-specific deflators for output and inputs. Controlling for industry, location, and year fixed effects, she finds that: firm size and TFP are negatively correlated; firm age and TFP exhibit an inverse-U shaped relationship; TFP improves with the quality of the firm s human capital; global integration improves TFP; firms with research and development activities and quality certifications have higher TFP, while more advanced technologies improve TFP only in the presence of significant absorptive capacity; power supply problems cost firms heavily in terms of TFP losses; and the presence of crime dampens TFP.