Jonas Hjort, Vinayak Iyer, Golvine de Rochambeau, 02 December 2021

Access to large buyers is increasingly believed to facilitate firm growth and job creation. This column uses an experiment with small and medium-sized firms in Liberia to analyse whether purely informational barriers exclude firms from accessing growth-conducive value chains. Exposing firms to a week-long ‘sellership’ programme helped them win more and better contracts, and the treatment had long-term effects. As the informational constraint is shown to bind for a quartile of firms, reducing informational barriers can help level the playing field and may also improve overall allocative efficiency.

Events

CEPR Policy Research