What Capital Is Missing in Developing Countries?
What capital is missing in developing countries? We put forward “managerial capital,” which is distinct from human capital, as a key missing form of capital in developing countries. And it has also been curiously missing in the research on growth and development. We argue in this paper that lack of...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Article |
| Language: | en_US |
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American Economic Association
2012
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| Online Access: | http://hdl.handle.net/1721.1/75778 https://orcid.org/0000-0002-3658-9131 |
| _version_ | 1826201252255498240 |
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| author | Schoar, Antoinette Bruhn, Miriam Dean, Karlan |
| author2 | Sloan School of Management |
| author_facet | Sloan School of Management Schoar, Antoinette Bruhn, Miriam Dean, Karlan |
| author_sort | Schoar, Antoinette |
| collection | MIT |
| description | What capital is missing in developing countries? We put forward “managerial capital,”
which is distinct from human capital, as a key missing form of capital in developing countries. And it has also been curiously missing in the research on growth and development. We argue in this paper that lack of managerial capital has
broad implications for firm growth as well as for the effectiveness of other input factors. A large literature in development economics aims to understand the impediments to firm growth, particularly in small and medium enterprises. Standard growth theories have explored the importance of input factors such as capital and labor in the production function of firms and countries. At the micro level, empirical studies
such as Suresh de Mel, David McKenzie and Christopher Woodruff (2008), Abhijit Banerjee
et al. (2009), and Dean Karlan and Jonathan Zinman (2009) have estimated the impact of
access to finance for capital constrained microenterprises (see Karlan and Jonathan Morduch, 2009, for a review). At the macro level, papers by Robert King and Ross Levine (1993), Raghuram Rajan and Luigi Zingales (1998), and Marianne Bertrand, Antoinette Schoar, and David Thesmar (2007) suggest the importance of the financial system for economic growth. |
| first_indexed | 2024-09-23T11:48:42Z |
| format | Article |
| id | mit-1721.1/75778 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T11:48:42Z |
| publishDate | 2012 |
| publisher | American Economic Association |
| record_format | dspace |
| spelling | mit-1721.1/757782022-10-01T06:11:33Z What Capital Is Missing in Developing Countries? Schoar, Antoinette Bruhn, Miriam Dean, Karlan Sloan School of Management Schoar, Antoinette What capital is missing in developing countries? We put forward “managerial capital,” which is distinct from human capital, as a key missing form of capital in developing countries. And it has also been curiously missing in the research on growth and development. We argue in this paper that lack of managerial capital has broad implications for firm growth as well as for the effectiveness of other input factors. A large literature in development economics aims to understand the impediments to firm growth, particularly in small and medium enterprises. Standard growth theories have explored the importance of input factors such as capital and labor in the production function of firms and countries. At the micro level, empirical studies such as Suresh de Mel, David McKenzie and Christopher Woodruff (2008), Abhijit Banerjee et al. (2009), and Dean Karlan and Jonathan Zinman (2009) have estimated the impact of access to finance for capital constrained microenterprises (see Karlan and Jonathan Morduch, 2009, for a review). At the macro level, papers by Robert King and Ross Levine (1993), Raghuram Rajan and Luigi Zingales (1998), and Marianne Bertrand, Antoinette Schoar, and David Thesmar (2007) suggest the importance of the financial system for economic growth. 2012-12-18T18:49:20Z 2012-12-18T18:49:20Z 2010-05 Article http://purl.org/eprint/type/JournalArticle 0002-8282 1944-7981 http://hdl.handle.net/1721.1/75778 Bruhn, Miriam, Dean Karlan, and Antoinette Schoar. “What Capital Is Missing in Developing Countries?” American Economic Review 100.2 (2010): 629–633. https://orcid.org/0000-0002-3658-9131 en_US http://dx.doi.org/10.1257/aer.100.2.629 American Economic Review Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use. application/pdf American Economic Association AEA |
| spellingShingle | Schoar, Antoinette Bruhn, Miriam Dean, Karlan What Capital Is Missing in Developing Countries? |
| title | What Capital Is Missing in Developing Countries? |
| title_full | What Capital Is Missing in Developing Countries? |
| title_fullStr | What Capital Is Missing in Developing Countries? |
| title_full_unstemmed | What Capital Is Missing in Developing Countries? |
| title_short | What Capital Is Missing in Developing Countries? |
| title_sort | what capital is missing in developing countries |
| url | http://hdl.handle.net/1721.1/75778 https://orcid.org/0000-0002-3658-9131 |
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