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  • 2010-2014  (14)
  • 2013  (14)
  • Ghani, Ejaz  (14)
  • Washington, D.C : The World Bank  (14)
  • 1
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    Urbanization and (In)Formalization (2013)
    Washington, D.C : The World Bank
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    Language: English
    Pages: Online-Ressource (29 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Ghani, Ejaz Urbanization and (In)Formalization
    Abstract: Two of the great stylized predictions of development theory, and two of the great expectations of policy makers as indicators of progress in development, are inexorable urbanization and inexorable formalization. Urbanization is indeed happening, beyond the "tipping point" where half the world's population is now urban. However, formalization has slowed down significantly in the past quarter century. Indeed, informality has been increasing. This disconnect raises a number of questions for development analysis and development policy. Is the link between urbanization and formalization more complex than what had been thought? What does this mean for policy? The first core section of this paper asks what exactly is meant by formality and informality. The second core section turns to processes of urbanization and asks how these processes intersect with and interact with the incentives to formalize. The paper examines why cities attract the informal sector and the role that urbanization plays in growth and job creation through both the formal and informal sectors. Cities generate agglomeration benefits in the informal sector, perhaps more so than for the formal sector. The third core section is devoted to policy. At the current conjuncture, agglomeration benefits make a strong case for urbanization as an integral part of development strategy, but concerns about jobless growth and about urban poverty require a focus on the informal sector
    DOI: 10.1596/1813-9450-6374
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  • 2
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    What Does MFN Trade Mean for India and Pakistan? : Can MFN be a Panacea? (2013)
    Washington, D.C : The World Bank
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    Language: English
    Pages: Online-Ressource (48 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: De, Prabir What Does MFN Trade Mean for India and Pakistan?
    Abstract: India and Pakistan, the two largest economies in South Asia, share a common border, culture and history. Despite the benefits of proximity, the two neighbors have barely traded with each other. In 2011, trade with Pakistan accounted for less than half a percent of India's total trade, whereas Pakistan's trade with India was 5.4 percent of its total trade. However, the recent thaw in India-Pakistan trade relations could signal a change. Pakistan has agreed to grant most favored nation status to India. India has already granted most favored nation status to Pakistan. What will be the gains from trade for the two countries? Will they be inclusive? Is most favored nation status a panacea? Should the granting of most favored nation status be accompanied by improvements in trade facilitation, infrastructure, connectivity, and logistics to reap the true benefits of trade and to promote shared prosperity? This paper attempts to answer these questions. It examines alternative scenarios on the gains from trade and it finds that what makes most favored nation status work is the trade facilitation that surrounds it. The results of the general equilibrium simulation indicate Pakistan's most favored nation status to India would generate larger benefits if it were supported by improved connectivity and trade facilitation measures. In other words, gains from trade would be small in the absence of improved connectivity and trade facilitation. The idea of trade facilitation is simple: implement measures to reduce the cost of trading across borders by improving infrastructure, institutions, services, policies, procedures, and market-oriented regulatory systems. The returns can be huge, even with modest resources and limited capacity. The dividends of trade facilitation can be shared by all
    DOI: 10.1596/1813-9450-6483
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  • 3
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    Urbanization and Agglomeration Benefits : Gender Differentiated Impacts on Enterprise Creation in India's Informal Sector (2013)
    Washington, D.C : The World Bank
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    Language: English
    Pages: Online-Ressource (24 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Ghani, Ejaz Urbanization and Agglomeration Benefits
    Keywords: Urbanisierung ; Agglomerationseffekt ; Geschlecht ; Unternehmensgründung ; Informelle Wirtschaft ; Indien
    Abstract: This paper presents an exploration at the intersection of four important themes in the current development discourse: urbanization, agglomeration benefits, gender and informality. Focusing on the important policy objective of new enterprise creation in the informal sector, it asks and answers four specific questions on the impact of urbanization and gender. It finds that (i) the effect of market access to inputs, on creation of new enterprises in the informal sector, is greater in more urbanized areas; (ii) This "urbanization gradient" also exists separately for the creation of female owned enterprises and male owned enterprises; (iii) there is a differential impact of female specific market access compared to male specific market access, on female owned enterprise creation in the informal sector; and (iv) gender specific market access to inputs matters equally in more or less urbanized areas. Among the policy implications of these findings are that (i) new enterprise creation by females can be encouraged by urbanization, but (ii) the effect can be stronger by improving female specific market access, especially to inputs. The analysis in this paper opens up a rich research agenda, including further investigation of the nature of input based versus output based perspectives on agglomeration benefits, and exploration of policy instruments that can improve female specific market access, which is shown to increase female owned enterprise creation
    DOI: 10.1596/1813-9450-6553
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  • 4
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    Female Business Ownership and Informal Sector Persistence (2013)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (36 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Ghani, Ejaz Female Business Ownership and Informal Sector Persistence
    Abstract: The informal sector in India has been exceptionally persistent over the past two decades. Is this a bad thing? Not necessarily. This paper shows that a substantial share of the persistence in India's unorganized manufacturing sector is due to the rapid increase in female-owned businesses. Had women's participation remained in the proportion to male-owned businesses that was evident in 1994, the unorganized manufacturing sector would have declined in share rather than increased. Most of these new female-owned businesses are opened in the household and at a small scale, about a third of the size of a typical male-owned business in the informal sector. Yet, it appears that these businesses offer economic opportunities not otherwise present and a transition for some women from unpaid domestic work
    DOI: 10.1596/1813-9450-6612
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  • 5
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    Specialization, Diversity, and Indian Manufacturing Growth (2013)
    Washington, D.C : The World Bank
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    Language: English
    Pages: Online-Ressource (48 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Ghani, Ejaz Specialization, Diversity, and Indian Manufacturing Growth
    Abstract: This paper examines the specialization and diversity of manufacturing industries within Indian districts. Prior to India's recent economic growth and liberalization, specialization levels in 1989 were substantially higher than similar metrics calculated for the United States. From 1989 to 2010, average specialization levels for Indian districts declined to a level that is now quite comparable to the United States. Diversity levels similarly increased. Specialization and diversity levels in India are becoming more persistent with time. Manufacturing plants display higher productivity in districts that display both properties. From 1989 to 2010, manufacturing employment growth was higher in districts that were more specialized at the start of the period
    DOI: 10.1596/1813-9450-6648
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  • 6
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    Input Usage and Productivity in Indian Manufacturing Plants (2013)
    Washington, D.C : The World Bank
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    Language: English
    Pages: Online-Ressource (51 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Ghani, Ejaz Input Usage and Productivity in Indian Manufacturing Plants
    Abstract: This paper analyzes the scale and productivity consequences of varied input use in Indian manufacturing using detailed plant-level data. Counts of distinct material inputs are higher in urban settings than in rural locations, unconditionally and conditional on plant size, and they are also higher in the organized sector than in the unorganized sector. At the district level, higher input usage in the organized sector is generally observed in wealthier districts and those with greater literacy rates. If looking within states, the usage is more closely associated with electricity access, population density, and closer spatial proximity to one of India's largest cities. Plants in the organized sector utilizing a greater variety of inputs display higher productivity, with the effects mostly concentrated among smaller plants with fewer than 50 employees. For the unorganized sector, there is little correlation of input counts and local conditions, for better or for worse, and a more modest link to productivity outcomes
    DOI: 10.1596/1813-9450-6656
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  • 7
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    Diasporas and Outsourcing : Evidence from oDesk and India (2013)
    Washington, D.C : The World Bank
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    Language: English
    Pages: Online-Ressource (44 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Ghani, Ejaz Diasporas and Outsourcing
    Abstract: This paper examines the role of the Indian diaspora in the outsourcing of work to India. The data are taken from oDesk, the world's largest online platform for outsourced contracts. Despite oDesk minimizing many of the frictions that diaspora connections have traditionally overcome, diaspora connections still matter on oDesk, with ethnic Indians substantially more likely to choose a worker in India. This higher placement is the result of a greater likelihood of choosing India for the initial contract, due in large part to taste-based preferences, and substantial path dependence in location choices. The paper further examines wage and performance outcomes of outsourcing as a function of ethnic connections
    DOI: 10.1596/1813-9450-6403
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  • 8
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    Friend or Foe or Family? : A Tale of Formal and Informal Plants in India (2013)
    Washington, D.C : The World Bank
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    Language: English
    Pages: Online-Ressource (69 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Ghani, Ejaz Friend or Foe or Family?
    Abstract: This paper examines the interaction between formal (organized) and informal (unorganized) plants in the manufacturing sector in India. How has the size and productivity of the plants in the organized sector affected the plants in the unorganized sector? How have informal plants affected formal plants? Are the magnitudes of the effects symmetric in either direction? The evidence shows that there are positive horizontal and vertical spillovers in each direction. Informal firms are an important supplier of inputs to formal firms. Employment and output in the organized sector is greater in those states in India that have a greater presence of unorganized suppliers of inputs. Conversely, unorganized employment and output are greater in states that have a greater presence of organized buyers of inputs. But there are two important asymmetries in the relationship between the organized and unorganized sectors. First, the unorganized sector is much more dependent on and responsive to organized sector presence than vice versa. Second, unorganized sector productivity is dependent on and responsive to organized sector productivity and presence but the reverse is not true
    DOI: 10.1596/1813-9450-6588
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  • 9
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    Highway to Success in India : The Impact of the Golden Quadrilateral Project for the Location and Performance of Manufacturing (2013)
    Washington, D.C : The World Bank
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    Language: English
    Pages: Online-Ressource (39 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Ghani, Ejaz Highway to Success in India
    Abstract: The infrastructure gap is one of the most significant impediments to India realizing its growth and poverty reduction potential. Although India's transport network is one of the most extensive in the world, accessibility and connectivity are limited. Only 20 percent of the national highway network (which carries 40 percent of traffic) is four-lane and one-fourth of the rural population does not have access to an all-weather road. It is estimated that the transport sector alone will require an investment of nearly US
    DOI: 10.1596/1813-9450-6320
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  • 10
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    The Exceptional Persistence of India's Unorganized Sector (2013)
    Washington, D.C : The World Bank
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    Language: English
    Pages: Online-Ressource (37 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Ghani, Ejaz The Exceptional Persistence of India's Unorganized Sector
    Abstract: The transformation of India's unorganized sector is important to its modernization, growth, and attainment of regional economic equality. This paper documents several key facts about India's unorganized sector in manufacturing and services. First, the unorganized sector is large, accounting for more than 99 percent of establishments and 80 percent of employment in manufacturing. Second, the unorganized sector is stubbornly persistent-it accounted for 81 percent of manufacturing employment in 1989 and 2005. Third, this persistence is not due to particular subsets of industries or states, as most industries and states show limited change in unorganized sector employment shares. Fourth, the degree to which localized unorganized activity exists is important as it is associated with weaker production functions for manufacturing firms. Building from these facts, the paper investigates conditions promoting transformation by state-industry. Decomposition exercises find that both within and between adjustments for state-industries weakly reduce unorganized sector shares. The aggregate persistence instead comes from the covariance term, where fast-growing state-industries witness rising unorganized sector activity. Regressions quantify that growth in the organized sector by state-industry reduces the unorganized sector employment share, but only marginally reduces employment levels in unorganized activity. Analysis of the establishment size distribution highlights that entrepreneurship and larger organized sector plants are most important for transitions in the manufacturing sector, while small establishments play a key role in the services sector
    DOI: 10.1596/1813-9450-6454
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  • 11
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    The Golden Quadrilateral Highway Project and Urban/Rural Manufacturing in India (2013)
    Washington, D.C : The World Bank
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    Language: English
    Pages: Online-Ressource (38 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Ghani, Ejaz The Golden Quadrilateral Highway Project and Urban/Rural Manufacturing in India
    Abstract: This study investigates the impact of the Golden Quadrilateral highway project on the urban and rural growth of Indian manufacturing. The Golden Quadrilateral project upgraded the quality and width of 5,846 km of roads in India. The study uses a difference-in-difference estimation strategy to compare non-nodal districts based on their distance from the highway system. For the organized portion of the manufacturing sector, the Golden Quadrilateral project led to improvements in both urban and rural areas of non-nodal districts located 0-10 km from the Golden Quadrilateral. These higher entry rates and increases in plant productivity are not present in districts 10-50 km away. The entry effects are stronger in rural areas of districts, but the differences between urban and rural areas are modest relative to the overall effect. The productivity consequences are similar in both locations. The most important difference appears to be the greater activation of urban areas near the nodal cities and rural areas in remote locations along the Golden Quadrilateral network. For the unorganized sector, no material effects are found from the Golden Quadrilateral upgrades in either setting. These findings suggest that in the time frames that we can consider-the first five to seven years during and after upgrades-the economic effects of major highway projects contribute modestly to the migration of the organized sector out of Indian cities, but are unrelated to the increased urbanization of the unorganized sector
    DOI: 10.1596/1813-9450-6620
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  • 12
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    Political Reservations and Women's Entrepreneurship in India (2013)
    Washington, D.C : The World Bank
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    Language: English
    Pages: Online-Ressource (35 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Ghani, Ejaz Political Reservations and Women's Entrepreneurship in India
    Abstract: This paper quantifies the link between the timing of state-level implementations of political reservations for women in India with the role of women in India's manufacturing sector. It does not find evidence that overall employment of women in manufacturing increased after the reforms. However, the analysis finds significant evidence that more women-owned establishments were created in the unorganized/informal sector. These establishments were concentrated in industries where women entrepreneurs have been traditionally active and the entry was mainly found among household-based establishments. This heightened entrepreneurship does not appear linked to changes in reporting, better access to government contracts and business, or improved financing environments. One interpretation of these results is that the implementation of the political reservations inspired more women to open establishments, and they did so at a small establishment scale in industries where they had experience and/or the support networks of other women
    DOI: 10.1596/1813-9450-6307
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  • 13
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    How to Avoid Middle Income Traps? : Evidence from Malaysia (2013)
    Washington, D.C : The World Bank
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    Language: English
    Pages: Online-Ressource (53 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Flaaen, Aaron How to Avoid Middle Income Traps?
    Abstract: Malaysia's structural transformation from low to middle income is a success story, making it one of the most prominent manufacturing exporters' in the world. However, like many other middle income economies, it is squeezed by the competition from low-wage economies on the one hand, and more innovative advanced economies on the other. What can Malaysia do? Does Malaysia need a new growth strategy? This paper emphasizes the need for broad structural transformation; that is, moving to higher productivity production in both goods and services. This paper examines productivity growth for Malaysia at the sectoral level, and constructs several measures of the sophistication of goods and services trade, and puts these comparisons in a global context. The results indicate that Malaysia has further opportunities for growth in the services sector in particular. Modernizing the services sector may provide a way out of the middle income trap, and serve as a source of growth for Malaysia into the future
    DOI: 10.1596/1813-9450-6427
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  • 14
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    Can Political Empowerment Help Economic Empowerment? : Women Leaders and Female Labor Force Participation in India (2013)
    Washington, D.C : The World Bank
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    Language: English
    Pages: Online-Ressource (33 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Ghani, Ejaz Can Political Empowerment Help Economic Empowerment?
    Abstract: This study examines whether political empowerment of women affects their economic participation. In the context of mandated political representation reform for women in India, the study finds that the length of exposure to women politicians affects overall female labor force participation. These effects seem to arise through direct and indirect channels: political representation of women directly affects hours of work assigned to women under the recent national public works program, the Mahatma Gandhi National Rural Employment Guarantee Scheme. In addition, the level of access to public goods, as influenced by exposure to women leaders over time, increases the likelihood of women being engaged in the labor force. The findings suggest that women's participation in politics could be a useful policy tool to increase both the supply of and the demand for labor market opportunities for women, potentially helping to stem India's declining female labor force participation rate
    DOI: 10.1596/1813-9450-6675
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