Productivity in Firms

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Why are firms in developing countries less productive than those in developed countries? Lower productivity in business is a major factor holding back the growth of

Why are firms in developing countries less productive than those in developed countries? Lower productivity in business is a major factor holding back the growth of developing economies. This video takes a look at some of the factors that lead to lower productivity, including autonomy of managers, bureaucratic rules within the firm, weaker promotion incentives, fear of managerial theft, financial constraints, and undeveloped infrastructure. The video also discusses how decentralization within the firm can help boost productivity.

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