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  • 1
    Language: English
    Pages: Online-Ressource (22 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Medvedev, Denis Informality and Profitability
    Abstract: This paper estimates the impact of informality on firm profits using a new firm-level survey designed specifically for this study. The survey was administered to about 1,200 firms with 50 employees or less in Ecuador's two largest cities, Quito and Guayaquil, plus two main centers of economic activity near the northern and southern borders. The paper's results confirm that the extent of firms' compliance with a set of regulatory requirements is linked to the perceived costs and benefits of informality, such as the probability of detection by the authorities and the likelihood of being fined. Nonetheless, taking into account the non-random placement of firms along the formality-informality spectrum and controlling for a large set of firm, owner, and location characteristics, the paper finds that more formal firms tend to be more profitable and have higher output per worker. This impact operates, inter alia, through more formal firms' ability to obtain improved access to credit and achieve higher sales by issuing receipts to clients
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  • 2
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: Online-Ressource (1 online resource (58 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Medvedev, Denis Preferential Liberalization And Its Economy-Wide Effects In Honduras
    Keywords: Bilateral trade ; Comparative advantage ; Currencies and Exchange Rates ; Debt Markets ; Economic Theory and Research ; Economic implications ; Emerging Markets ; Finance and Financial Sector Development ; Free Trade ; Free Trade ; Income ; International Economics & Trade ; Macroeconomics and Economic Growth ; Open economy ; Private Sector Development ; Productivity ; Safety nets ; Trade liberalization ; Trade policy ; Bilateral trade ; Comparative advantage ; Currencies and Exchange Rates ; Debt Markets ; Economic Theory and Research ; Economic implications ; Emerging Markets ; Finance and Financial Sector Development ; Free Trade ; Free Trade ; Income ; International Economics & Trade ; Macroeconomics and Economic Growth ; Open economy ; Private Sector Development ; Productivity ; Safety nets ; Trade liberalization ; Trade policy ; Bilateral trade ; Comparative advantage ; Currencies and Exchange Rates ; Debt Markets ; Economic Theory and Research ; Economic implications ; Emerging Markets ; Finance and Financial Sector Development ; Free Trade ; Free Trade ; Income ; International Economics & Trade ; Macroeconomics and Economic Growth ; Open economy ; Private Sector Development ; Productivity ; Safety nets ; Trade liberalization ; Trade policy
    Abstract: This paper quantifies the likely benefits of trade and investment liberalization in a small, poor, open economy, using the accession of Honduras to the Dominican Republic-Central American Free Trade Agreement as a case study. The results show that bilateral trade liberalization with the United States is likely to have almost no effect on welfare in Honduras, while the reciprocal removal of protection vis-a-vis the rest of Central America would lead to significantly larger gains. Potential gains from increased net foreign direct investment inflows overwhelm those expected from trade reform alone, particularly if the new foreign direct investment generates productivity spillovers. However, if it is to replace Honduran investment rather than complement domestic capital formation, growth performance is unlikely to improve and may even suffer. The paper's results identify several areas for policy attention by Honduran policy makers to make the Dominican Republic-Central American Free Trade Agreement more development-friendly. These include carefully considering the budgetary implications of trade reform, widening social safety nets to counter the trends toward increasing income inequality, and sequencing the reforms to ensure a close alignment of Honduras' comparative advantage on the regional and global markets
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  • 3
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: Online-Ressource (1 online resource (90 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Medvedev, Denis Preferential Trade Agreements And Their Role In World Trade
    Keywords: Bilateral Trade ; Economic Theory and Research ; Emerging Markets ; Free Trade ; Free Trade ; Free Trade Area ; Global Trade ; Gravity Equation ; Gravity Estimates ; Gravity Framework ; Gravity Model ; Gravity Models ; International Economics & Trade ; Law and Development ; Macroeconomics and Economic Growth ; Preferential Trade ; Preferential Trade ; Private Sector Development ; Public Sector Development ; Trade Law ; Trade Policy ; Trade and Services ; Bilateral Trade ; Economic Theory and Research ; Emerging Markets ; Free Trade ; Free Trade ; Free Trade Area ; Global Trade ; Gravity Equation ; Gravity Estimates ; Gravity Framework ; Gravity Model ; Gravity Models ; International Economics & Trade ; Law and Development ; Macroeconomics and Economic Growth ; Preferential Trade ; Preferential Trade ; Private Sector Development ; Public Sector Development ; Trade Law ; Trade Policy ; Trade and Services ; Bilateral Trade ; Economic Theory and Research ; Emerging Markets ; Free Trade ; Free Trade ; Free Trade Area ; Global Trade ; Gravity Equation ; Gravity Estimates ; Gravity Framework ; Gravity Model ; Gravity Models ; International Economics & Trade ; Law and Development ; Macroeconomics and Economic Growth ; Preferential Trade ; Preferential Trade ; Private Sector Development ; Public Sector Development ; Trade Law ; Trade Policy ; Trade and Services
    Abstract: The author investigates the effects of preferential trade agreements (PTAs) on bilateral trade flows using a comprehensive database of PTAs in force and a detailed matrix of world trade. He shows that total trade between PTA partners is a poor proxy for preferential trade (trade in tariff lines where preferences are likely to matter): while the former amounted to one-third of global trade in 2000-02, the latter was between one-sixth and one-tenth of world trade. His gravity model estimates indicate that using total rather than preferential trade to assess the impact of PTAs leads to a significant downward bias in the PTA coefficient. The author finds that product exclusions and long phase-in periods significantly limit preferential trade, and their removal could more than double trade in tariff lines above 3 percent of most-favored-nation (MFN) duties. He also shows that the effects of PTAs on trade vary by type of agreement and are increasing in the incomes of PTA partners
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  • 4
    Language: English
    Pages: Online-Ressource (1 online resource (66 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Medvedev, Denis Beyond Trade
    Keywords: Barriers ; Common Market ; Competition ; Currencies and Exchange Rates ; Debt Markets ; Economic Theory and Research ; Emerging Markets ; Exchange ; Finance and Financial Sector Development ; Foreign Direct Investment ; Foreign Direct Investment ; Foreign Investment ; Free Trade ; Harmonization ; Income ; Intellectual Property ; Interest ; International Capital ; International Economics & Trade ; Law and Development ; Macroeconomics and Economic Growth ; Private Sector Development ; Public Sector Development ; Trade Law ; Trade Policy ; Trade and Regional Integration ; Barriers ; Common Market ; Competition ; Currencies and Exchange Rates ; Debt Markets ; Economic Theory and Research ; Emerging Markets ; Exchange ; Finance and Financial Sector Development ; Foreign Direct Investment ; Foreign Direct Investment ; Foreign Investment ; Free Trade ; Harmonization ; Income ; Intellectual Property ; Interest ; International Capital ; International Economics & Trade ; Law and Development ; Macroeconomics and Economic Growth ; Private Sector Development ; Public Sector Development ; Trade Law ; Trade Policy ; Trade and Regional Integration ; Barriers ; Common Market ; Competition ; Currencies and Exchange Rates ; Debt Markets ; Economic Theory and Research ; Emerging Markets ; Exchange ; Finance and Financial Sector Development ; Foreign Direct Investment ; Foreign Direct Investment ; Foreign Investment ; Free Trade ; Harmonization ; Income ; Intellectual Property ; Interest ; International Capital ; International Economics & Trade ; Law and Development ; Macroeconomics and Economic Growth ; Private Sector Development ; Public Sector Development ; Trade Law ; Trade Policy ; Trade and Regional Integration
    Abstract: The author investigates the effects of preferential trade agreements (PTAs) on the net foreign direct investment (FDI) inflows of member countries using a comprehensive database of PTAs in a panel setting. He finds that PTA membership is associated with a positive change in net FDI inflows, and the FDI gains are increasing in the market size of the PTA partners and their proximity to the host country. The author identifies several different channels through which preferential trade liberalization may affect FDI, and confirms that both threshold effects (signing the agreement) and market size effects (joining a larger and faster-growing common market) are important determinants of net FDI inflows, although the latter seem to dominate. The estimated relationship is largely driven by North-South PTAs, and is most pronounced in the late 1990s and early 2000s, the period when the majority of "deep integration" PTAs had been advanced
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  • 5
    Language: English
    Pages: Online-Ressource (1 online resource (29 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Bussolo, Maurizio Do Remittances Have A Flip Side ?
    Keywords: Currencies and Exchange Rates ; Debt Markets ; Economic Growth ; Economic Theory and Research ; Effects ; Emerging Markets ; Finance and Financial Sector Development ; Financial Literacy ; General Equilibrium ; High Unemployment ; Information ; Investment ; Labor ; Labor ; Labor Costs ; Labor Demand ; Labor Force ; Labor Force Participation ; Labor Markets ; Labor Policies ; Macroeconomics and Economic Growth ; Private Sector Development ; Social Protections and Labor ; Currencies and Exchange Rates ; Debt Markets ; Economic Growth ; Economic Theory and Research ; Effects ; Emerging Markets ; Finance and Financial Sector Development ; Financial Literacy ; General Equilibrium ; High Unemployment ; Information ; Investment ; Labor ; Labor ; Labor Costs ; Labor Demand ; Labor Force ; Labor Force Participation ; Labor Markets ; Labor Policies ; Macroeconomics and Economic Growth ; Private Sector Development ; Social Protections and Labor ; Currencies and Exchange Rates ; Debt Markets ; Economic Growth ; Economic Theory and Research ; Effects ; Emerging Markets ; Finance and Financial Sector Development ; Financial Literacy ; General Equilibrium ; High Unemployment ; Information ; Investment ; Labor ; Labor ; Labor Costs ; Labor Demand ; Labor Force ; Labor Force Participation ; Labor Markets ; Labor Policies ; Macroeconomics and Economic Growth ; Private Sector Development ; Social Protections and Labor
    Abstract: Econometric analysis has established a negative relationship between labor supply and remittances in Jamaica. The authors incorporate this ex-post evidence in a general equilibrium model to investigate economywide effects of increased remittance inflows. In this model, remittances reduce labor force participation by increasing the reservation wages of recipients. This exacerbates the real exchange rate appreciation, hurting Jamaica's export base and small manufacturing import-competing sector. Within the narrow margins of maneuver of a highly indebted government, the authors show that a revenue-neutral policy response of a simultaneous reduction in payroll taxes and increase in sales taxes can effectively counteract these potentially negative effects of remittances
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  • 6
    Language: English
    Pages: 1 Online-Ressource (17 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Ikeda, Yuki Advanced-Country Policies and Emerging-Market Currencies
    Abstract: The global financial crisis and its aftermath have triggered extraordinary policy responses in advanced countries. The impacts of these policy responses-from asset price bubbles to currency depreciations-have often been felt in the developing world. As tapering talk evolves into actual withdrawal of quantitative easing in the United States, and as the Euro Zone launches its own quantitative easing program, there are good reasons to be concerned about the financial stability of emerging economies. India's experience with U.S. tapering offers insights into what to expect. This paper estimates the contribution of external and domestic factors to short-term fluctuations in the value of the Indian rupee between 2004 and 2014, using a rich dynamic model that controls for a large number of exchange rate determinants. The paper finds that a global surprise factor, more than domestic vulnerabilities, was the main driver of the large rupee depreciation in summer 2013. With the surprise factor gone, further normalization of U.S. monetary policy is unlikely to have significant effects on the rupee exchange rate
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  • 7
    ISBN: 9781464809743
    Language: English
    Pages: Online-Ressource (1 online resource (178 p.))
    Edition: Online-Ausg.
    Series Statement: South Asia Development Matters
    Series Statement: World Bank E-Library Archive
    Parallel Title: Druckausg.
    Keywords: Exports ; Labor ; Apparel ; Agribusiness ; Productivity
    Abstract: South Asia has a huge need to create more and better jobs for a growing population especially in the manufacturing industries where it is underperforming as compared to East Asia. The report examines three critical and relatively understudied drivers of competitiveness: -Economies of agglomeration: firms and workers accrue benefits from locating close together in cities or clusters through urbanization and localization. -Participation in global value chains: stronger competitive pressures weed out least productive firms while others improve by gaining access to new knowledge and better inputs. -Firm capabilities: in order to operate close to what would be considered optimum efficiency levels given the prevailing factor prices and thus employ South Asia's abundant labor. The report shows that South Asia has great untapped competitiveness potential. Realizing this potential would require the governments in the region to pursue second generation trade policy reforms for firms to better contribute to and benefit from global value chains (e.g. facilitating imports for exporters), to facilitate the development of industrial clusters in secondary cities (cheaper and less congested than the metros) as well as to deploy policies to improve the capabilities of firms
    Note: Description based on print version record
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  • 8
    Language: English
    Pages: Online-Ressource (1 online resource (33 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Bussolo, Maurizio Global Growth And Distribution
    Keywords: Development Economics ; Economic Theory and Research ; Emerging Markets ; General Equilibrium Model ; Growth Rates ; High Growth ; Income ; Income Distribution ; Incomes ; Inequality ; Inequality ; Macroeconomics and Economic Growth ; Middle Class ; Policy Research ; Poverty Reduction ; Private Sector Development ; Pro-Poor Growth ; Rural Development ; Rural Poverty Reduction ; Development Economics ; Economic Theory and Research ; Emerging Markets ; General Equilibrium Model ; Growth Rates ; High Growth ; Income ; Income Distribution ; Incomes ; Inequality ; Inequality ; Macroeconomics and Economic Growth ; Middle Class ; Policy Research ; Poverty Reduction ; Private Sector Development ; Pro-Poor Growth ; Rural Development ; Rural Poverty Reduction ; Development Economics ; Economic Theory and Research ; Emerging Markets ; General Equilibrium Model ; Growth Rates ; High Growth ; Income ; Income Distribution ; Incomes ; Inequality ; Inequality ; Macroeconomics and Economic Growth ; Middle Class ; Policy Research ; Poverty Reduction ; Private Sector Development ; Pro-Poor Growth ; Rural Development ; Rural Poverty Reduction
    Abstract: Over the past 20 years, aggregate measures of global inequality have changed little even if significant structural changes have been observed. High growth rates of China and India lifted millions out of poverty, while the stagnation in many African countries caused them to fall behind. Using the World Bank's LINKAGE global general equilibrium model and the newly developed Global Income Distribution Dynamics (GIDD) tool, this paper assesses the distribution and poverty effects of a scenario where these trends continue in the future. Even by anticipating a deceleration, growth in China and India is a key force behind the expected convergence of per-capita incomes at the global level. Millions of Chinese and Indian consumers will enter into a rapidly emerging global middle class-a group of people who can afford, and demand access to, the standards of living previously reserved mainly for the residents of developed countries. Notwithstanding these positive developments, fast growth is often characterized by high urbanization and growing demand for skills, both of which result in widening of income distribution within countries. These opposing distributional effects highlight the importance of analyzing global disparities by taking into account - as the GIDD does - income dynamics between and within countries
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  • 9
    Language: English
    Pages: Online-Ressource (43 p)
    Edition: 2011 World Bank eLibrary
    Parallel Title: Bussolo, Maurizio Distributional Effects of the Panama Canal Expansion
    Abstract: This paper uses a dynamic macro-micro framework to evaluate the potential distributional effects of the expansion of the Panama Canal. The results show that large macroeconomic effects are only likely during the operations phase (2014 and onward), and income gains are likely to be concentrated at the top of the income distribution. The additional foreign exchange inflows during the construction and operations phases result in the loss of competitiveness of non-Canal sectors (Dutch disease) and in higher domestic prices, which hurt the poorest consumers. In addition, the construction and operation activities increase demand for more educated non-farm formal workers. Although these changes encourage additional labor movement out of agriculture and from the informal to the formal sector, much of the impact is manifested in growing wage disparities and widening income inequality. Using the additional revenues of the Canal expansion in a targeted cash transfer program such as "Red de Oportunidades", the Government of Panama could offset the adverse distributional effects and eradicate extreme poverty
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  • 10
    Language: English
    Pages: 1 Online-Ressource
    Series Statement: Other papers
    Series Statement: World Bank E-Library Archive
    Abstract: This paper assesses the potential impacts of the removal of agricultural and other trade distortions using a newly developed dataset and methodological approach for evaluating the global poverty and inequality effects of policy reforms. It finds that liberalization of agriculture will increase global extreme poverty (US
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