Abstract
Economies have markedly different firm size distributions. At the same time, firms of different size grow differently after identical financial- and product-market liberalization reforms.
Thus, identical reforms can produce different growth outcomes across countries. This result is reached after exploring firm-level data on sales and sales per worker across 135 developing and post-transition economies.
It helps explain the remarkable variation in the vast development literature studying the effects of various market-oriented reforms across countries and over time.