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  • 1
    Online Resource
    Online Resource
    Washington, D.C. : World Bank Group, Development Research Group, Macroeconomics and Growth Team
    Language: English
    Pages: 1 Online-Ressource (circa 66 Seiten) , Illustrationen
    Series Statement: Policy research working paper 8363
    Series Statement: World Bank E-Library Archive
    Series Statement: Policy research working paper
    Parallel Title: Erscheint auch als Bachas, Pierre Size-Dependent Tax Enforcement and Compliance: Global Evidence and Aggregate Implications
    Keywords: Finanzverwaltung ; Steuermoral ; Steuerfahndung ; Rechtsdurchsetzung ; Produktivitätsentwicklung ; Welt ; Graue Literatur
    Abstract: This paper studies the prevalence and consequences of size-dependent tax enforcement and compliance. The identification strategy uses the ranking of industries' average firm size in the United States as an instrument for the size ranking of the same industries in developing countries. Data on 125,000 firms in 140 countries show that tax enforcement and compliance increase with size. Size-dependence is more prevalent in low-income countries, and concentrated at the top of the size distribution. When quantified in a general equilibrium model, removing size dependent enforcement leads to gains in Total Factor Productivity of up to 0.8 percent
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 2
    Online Resource
    Online Resource
    Washington, D.C. : World Bank Group, Development Economics, Development Research Group
    Language: English
    Pages: 1 Online-Ressource (circa 53 Seiten) , Illustrationen
    Series Statement: Policy research working paper 8505
    Series Statement: World Bank E-Library Archive
    Series Statement: Policy research working paper
    Parallel Title: Erscheint auch als Buera, Francisco J The Dynamics of Development: Innovation and Reallocation
    Keywords: Graue Literatur
    Abstract: This paper proposes a quantitative model of firm dynamics with endogenous innovation to study growth acceleration episodes triggered by reforms. The authors find that reforms removing barriers to firm entry lead to persistent growth in TFP and declining average firm size, as in the experience of successful post-communist transitions. Reforms that reverse resource misallocation result in more protracted paths of TFP and rising average firm size, as in the experience of non-communist growth accelerations. When calibrating the reforms to data from Chile's and China's growth accelerations, the model can replicate the macro and firm-level features of these episodes
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 3
    Online Resource
    Online Resource
    [Washington, DC, USA] : World Bank Group, Macroeconomics, Trade and Investment Global Practice
    Language: English
    Pages: 1 Online-Ressource (circa 54 Seiten) , Illustrationen
    Series Statement: Policy research working paper 9027
    Series Statement: World Bank E-Library Archive
    Series Statement: Policy research working paper
    Parallel Title: Erscheint auch als Fattal-Jaef, Roberto N Entry Barriers, Idiosyncratic Distortions, and the Firm-Size Distribution
    Keywords: Graue Literatur
    Abstract: This paper studies the interaction between entry barriers and idiosyncratic distortions in the context of a standard model of firm dynamics. It derives a strategy to infer entry barriers based on the combination of cross-country data on average firm size, cross-country estimates of idiosyncratic distortions, and equilibrium conditions of the theory. It finds sizable entry barriers that correlate positively with income per-capita. The TFP gains from complete reversals of distortions range between 20 and 50 percent. Idiosyncratic distortions are most distortive in low income countries whereas entry barriers are relatively more detrimental in advanced economies. The study also finds that distortions tend to mitigate each other's negative effect on TFP
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  • 4
    Language: English
    Pages: 1 Online-Ressource (circa 45 Seiten) , Illustrationen
    Series Statement: Policy research working paper 9133
    Series Statement: World Bank E-Library Archive
    Series Statement: Policy research working paper
    Parallel Title: Erscheint auch als Erhan Artuc Toward Successful Development Policies: Insights from Research in Development Economics
    Keywords: Graue Literatur
    Abstract: What major insights have emerged from development economics in the past decade, and how do they matter for the World Bank? This challenging question was recently posed by World Bank Group President David Malpass to the staff of the Development Research Group. This paper assembles a set of 13 short, nontechnical briefing notes prepared in response to this request, summarizing a selection of major insights in development economics in the past decade. The notes synthesize evidence from recent research on how policies should be designed, implemented, and evaluated, and provide illustrations of what works and what does not in selected policy areas
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  • 5
    Language: English
    Pages: 1 Online-Ressource (65 pages)
    Parallel Title: Erscheint auch als Abreha, Kaleb Girma Deconstructing the Missing Middle: Informality and Growth of Firms in Sub-Saharan Africa
    Keywords: Employment and Unemployment ; Endodgenous Informality ; Establishment Concensus ; Firm Size Distribution ; Inclusion of Informal Firms ; Informality ; Labor and Employment Law ; Law and Development ; Manufacturing ; Market Distortion ; Microenterprises ; Missing Middle ; Poverty Reduction ; Private Sector Development ; Small and Medium Size Enterprises
    Abstract: This paper characterizes the firm size distribution by exploiting establishment-level censuses covering both formal and informal firms in Sub-Saharan Africa. The paper finds a "missing middle" in the employment-based size distribution of firms in four Sub-Saharan African countries. This "missing middle" hinges on the inclusion of informal firms, and it is not explained by state- or foreign-owned firms at the top of the size distribution, nor does it emerge from the size distribution of entrants. The paper reconciles these empirical results with a model of firm dynamics with endogenous informality and shows that calibrated values of entry barriers and productivity-dependent idiosyncratic distortions generate a "missing middle" that is consistent with its underlying drivers in the data
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  • 6
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: 1 Online-Ressource (33 pages)
    Parallel Title: Erscheint auch als Fattal Jaef, Roberto N On the Welfare Costs of Premature Deindustrialization
    Keywords: Allocation of Resources ; Efficient Sectoral Allocation ; Industry ; Inefficiency ; International Economics and Trade ; Premature Deindustrialization ; Service Sector ; Welfare Costs
    Abstract: Developing countries are deindustrializing at earlier stages of development than experienced by advanced economies. Is this trend symptomatic of inefficiency If so, what are the welfare costs This paper proposes a definition of premature deindustrialization based on whether the pace of deindustrialization diverges from the one implied by a theoretical benchmark of efficient sectoral allocation. It identifies 10 episodes of premature deindustrialization, carrying negligible welfare costs, below 1 percent of aggregate consumption
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  • 7
    Language: English
    Pages: 1 Online-Ressource
    Series Statement: Other papers
    Abstract: Argentina is characterized by low levels of private credit and persistent labor market rigidities. Furthermore, financial development remained stagnant in Argentina even during episodes of fast economic growth, in stark contrast with the experience of sustained growth accelerations around the world. The goals of the paper are twofold. Firstly, it is concerned with quantifying the productivity losses associated with such low levels of private credit penetration and characterizing its implications for different subsets of firms in the economy. The latter is important in light of various policy interventions aimed at mitigating the impact of low access to credit based on firm-size thresholds. Secondly, it studies the dynamics of hypothetical reforms to credit markets in a context of rigid labor markets, which seems to be the adequate scenario in which structural reforms will have to be implemented, given the stickiness that labor market regulations have shown to reform efforts in the past. It finds sizable productivity losses from financial frictions, in the order of thirteen percent. At the micro level it finds that it is the youngest firms, whose average marginal return to capital is far above the riskfree rate in the economy, that are more prone to become financially constrained. Turning to reform scenarios, we investigate sudden reforms that are implemented abruptly and more plausible reform paths that gradually dismantle financial frictions. In the former, productivity and the investment rate rise sharply on impact, while it also does the rate of unemployment, going from five to almost twelve percent. In the latter, the rise of unemployment is more gradual and less sharp, peaking at seven percent. On the flipside, the investment rate declines on impact, although the contraction is short-lived
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  • 8
    Language: English
    Pages: 1 Online-Ressource (37 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Cirera, Xavier Taxing the Good? Distortions, Misallocation, and Productivity in Sub-Saharan Africa
    Abstract: This paper uses comprehensive and comparable firm-level manufacturing census data from four Sub-Saharan African countries to examine the extent, costs, and nature of within-industry resource misallocation across heterogeneous firms. The paper finds evidence of severe misallocation in which resources are diverted away from high-productivity firms toward low-productivity ones in all four countries, although the magnitude differs across countries. The paper shows that a hypothetical reallocation of resources that equalizes marginal returns across firms would increase manufacturing productivity by 31.4 percent in Cote d'Ivoire and as much as 162.7 percent in Kenya. The paper emphasizes the importance of the quality of the underlying data, by comparing the results against those from the World Bank Enterprise Surveys. The comparison finds that the survey-based results underestimate the extent of misallocation vis-a-vis the census. Finally, the paper finds that the size of existing distortions is correlated with various measures of business environment, such as lack of access to finance, corruption, and regulations
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 9
    Language: English
    Pages: 1 Online-Ressource (42 pages)
    Parallel Title: Erscheint auch als Print Version: Buera, Francisco J The Economic Ripple Effects of COVID-19
    Abstract: What are the effects of a large temporary shock to the economy such as a temporary lockdown in response to a pandemic? Are the effects propagated and made persistent by firms' deteriorating balance sheets and labor market frictions? This paper develops a model with financial market and labor market frictions to answer these questions. The model makes quantitative predictions about the effect on output, employment and firm dynamics from lockdowns of varying magnitude and duration. It finds that the effects are not persistent despite the deterioration of the financial soundness of non-essential firms and labor market frictions, if (i) laid-off workers can be recalled by their previous employers without having to go through the frictional labor market and (ii) the government provides employment subsidies to firms during lockdown. However, the effect are heterogeneous and young non-essential firms are disproportionately affected. In addition, if lockdowns lead to more permanent reallocation across industries, the recession becomes more protracted
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