Understanding Productivity Dispersion: Evidence on the Role of Mechaniz ation from Urban Uganda joint work with Raffaela Muoio, Tommaso Po rzio, Ritwika Sen and Esau Tugume
Abstract:
We study the drivers of productivity dispersion across firms in three manufacturing sectors in urban Uganda, focusing in particular on the role of mechanization. To do so, we first design and implement a new repre sentative survey of 1,000 manufacturing firms and their employees, which al lows us to collect information on the details of the entire production proc ess for key products. The data reveal a key role of firm-level mechanizatio n as a statistical predictor of productivity: completing production steps w ith electrically powered machines as opposed to manual tools is the stronge st predictor of productivity differences across firms. We further uncover a very active rental market, with most firms renting machines from other fir ms in the same sector. Informed by these key facts, we propose a simple mod el that allows us to: i) shed light on the link between mechanization and p roductivity, ii) measure distortions in the market for machines, and iii) s imulate policy counterfactuals. Finally, we outline potential interventions that are motivated by the predictions of the model, and that we are curren tly piloting in the field, in preparation for a large-scale field experimen t aimed at increasing productivity through mechanization.
DTSTAMP:20260403T183732Z DTSTART:20190528T130000Z DTEND:20190528T140000Z SEQUENCE:0 TRANSP:OPAQUE END:VEVENT END:VCALENDAR