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The role of managerial ability and equipment quality in LDC manufacturing (Английский)

This paper explores the relationship between managerial ability and X-efficiency using firm level evidence from Pakistan. Kinship and experience are identified as shifters of the managerial effort supply curve. It is argued that a capital subsidy policy that allocates scarce capital to firms on their ability to repay may affect managerial effort and X-efficiency. Furthermore, it is shown that firms owning sophisticated and second-hand equipment are...
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