Fredrik Sjöholm noted that the policy recommendation was to facilitate transfer of resources from contracting industries to expanding industries. He was curious about exactly how that should be achieved and what the roles of the market and the state are in this process.

Prema-chandra Athukorala noted that there are alternative measures of export performance that can be used and which, in many respects, are preferable. He suggested the use of world export shares, which is both easy to calculate and easy to interpret.

Fukunari Kimura noted that there were no intermediate products in the production function that might bias the result even though value-added rather than gross output is used. For precise estimates one typically prefers to have information on intermediate goods and, importantly, good price deflators. Athukorala thought that a standard TFP index should be sufficient for studying the issue at hand. Sisira Jayasuriya discussed allocating efficiency versus TFP....

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