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  • All HBS Web  (7)
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    • Research  (5)
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  • All HBS Web  (7)
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    • Research  (5)
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  • 2014
  • Working Paper

Profits and Economic Development

By: Dan Schwab and Eric Werker
Are rents, or excess profits, good for development? Using industry-level manufacturing data, this paper demonstrates a negative effect of rents, measured by the mark-up ratio, on productivity growth. The negative effect is strongest in poor countries, suggesting that... View Details
Keywords: Firm Performance; Rent; Mark-up; Competition; Manufacturing; Development Economics; Profit; Economic Growth; Renting or Rental
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Schwab, Dan, and Eric Werker. "Profits and Economic Development." Harvard Business School Working Paper, No. 14-087, March 2014. (Revised April 2014.)
  • 02 May 2014
  • Working Paper Summaries

Profits and Economic Development

Keywords: by Dan Schwab & Eric Werker
  • 22 May 2017
  • Lessons from the Classroom

A Luxury Industry Veteran Teaches the Importance of Aesthetics to Budding Business Leaders

prices. Promote periodic price mark-up events. And, eventually, start a conversation about truly rationalized pricing, tied to the actual cost of input for the producers, including the labor of impoverished women in developing countries.... View Details
Keywords: by Carmen Nobel; Beauty & Cosmetics; Apparel & Accessories; Auto; Tourism
  • 22 Apr 2014
  • First Look

First Look: April 22

paper demonstrates a negative effect of rents, measured by the mark-up ratio, on productivity growth. The negative effect is strongest in poor countries, suggesting that high profits stymie economic development rather than enable it.... View Details
Keywords: Sean Silverthorne
  • 25 Mar 2014
  • First Look

First Look: March 25

and Economic Development By: Schwab, Dan, and Eric Werker Abstract—Using industry-level manufacturing data, this paper demonstrates a negative effect of rents, measured by the mark-up ratio, on productivity growth. This result is robust... View Details
Keywords: Sean Silverthorne
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