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  • 2020-2024  (15)
  • 1970-1974
  • 1955-1959
  • Grover, Arti  (15)
  • Washington, D.C : The World Bank  (15)
  • 1
    Language: English
    Pages: 1 Online-Ressource (44 pages)
    Parallel Title: Erscheint auch als Grover, Arti Do Shocks Perpetuate Disparities within and across Informal Firms? Evidence from the COVID-19 Pandemic in South Asia
    Keywords: COVID Shock To Informal Firms ; COVID-19 Economic Recovery ; COVID-19 Impact ; Equity and Development ; Firms in Crisis ; Informality ; Information and Communication Technologies ; Poverty Reduction ; Private Sector Development ; Private Sector Economics ; Private Sector Support
    Abstract: Using three rounds of data from the Business Pulse Survey in South Asia, this paper studies the differential effects of the COVID-19 shock on informal firms. It also captures heterogeneity within informal firms based on the degree and motivation of informality. The findings suggest that the severity of the impact of the COVID-19 shock and the recovery speed are strongly associated with the degree of informality. Firms' external attributes, such as size, sector, age, and gender of the owner, do not explain the depth of the impact. Internal characteristics such as poor management capabilities and education of the manager and owners are strong predictors of vulnerability among informal firms. In particular, necessity firms experience a larger drop in sales relative to the parasitic type of informal firms. To add to this, the adjustment response (for example, the use of digital platforms) of informal firms is smaller, which perpetuates the gap between formal and informal firms. Within informal firms, the parasitic type typically have a smaller adjustment response. These findings have implications for policies to support the private sector in the presence of informality, including considerations pertaining to targeting, modality of support, and the instruments required for designing more impactful programs during shocks
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  • 2
    Language: English
    Pages: 1 Online-Ressource (44 pages)
    Parallel Title: Erscheint auch als Choi, Yewon Trade Promotion Organizations in the Pandemic World
    Keywords: COVID Impact on Trade Promotion ; COVID-19 Pandemic Impact ; COVID-19 Trade Recovery Plan ; Crisis Recovery ; Global Value Chains ; International Economics and Trade ; Trade Promotion Organization Budgets
    Abstract: A 2021-22 survey of trade promotion organizations conducted by the World Bank to understand how the COVID-19 pandemic affected their functioning suggests four main findings. First, trade promotion organizations in high-income countries are larger than those in low-income countries, suggesting a stronger capacity to adapt during the pandemic. Second, trade promotion organizations in high-income countries saw a significant jump in their median budget in 2021 indicating a strong response effort. In low-income countries, the budgets of trade promotion organizations declined. Third, most trade promotion organizations in high-income countries put in place a COVID-19 recovery plan, while none of the trade promotion organizations in low-income countries had one in place at the time of the survey. Fourth, trade promotion organizations used several virtual tools during the pandemic, such as business-to-business matching events and training of small firms on e-commerce, and are expecting to increase the use of all virtual tools post COVID-19. Trade promotion organizations' use of virtual tools in low-income countries remained limited
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  • 3
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: 1 Online-Ressource (48 pages)
    Parallel Title: Erscheint auch als Amann, Juergen The Effects of Energy Prices on Firm Competitiveness: Evidence from Chile
    Keywords: Chilean Annual National Industrial Survey Data ; Competitiveness ; Firm Level Technology Adoption ; Firm Productivity ; Fossil Fuel ; International Economics and Trade ; Private Sector Development, Competition Policy, Energy Prices
    Abstract: This paper analyzes the impact of changes in energy prices on the competitiveness of manufacturing firms in Chile. Using the Chilean Annual National Industrial Survey data, the paper illustrates that, first, increases in energy prices generally do not hurt firm competitiveness. Second, the impact of energy prices depends on the fuel type-while electricity price increases are negatively correlated with firm outcomes, fossil fuel price increases have a positive association with investment and firm productivity, a result that is consistent with the strong version of the Porter hypothesis. Third, these effects are heterogeneous and vary by firm attributes such as size, ownership and location. Fourth, investigating non-linear patterns in firm outcomes based on the level of energy prices, the findings show that the positive correlation between fossil fuel price increases and capital upgrading is particularly pronounced when energy prices are at relatively low levels
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  • 4
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: 1 Online-Ressource (52 pages)
    Parallel Title: Erscheint auch als Brucal, Arlan Masters of Disasters: The Heterogeneous Effects of a Crisis on Micro-Sized Firms
    Keywords: Business Cycles and Stabilization Policies ; Business Pulse Survey Data ; COVID-19 Impact ; Crisis and Micro and Small Firms ; Crisis Effects ; Informality ; International Finance Corporation ; Macroeconomics and Economic Growth ; Microenterprises ; Private Sector Development ; Resilience ; Small and Medium Size Enterprises
    Abstract: Most crises have a disproportionately larger negative effect on micro-sized firms. Yet, the heterogeneity of impact within micro-sized firms is lesser known. Using five waves of the World Bank's Business Pulse Survey data, this paper finds that firms with zero to four employees have a much larger drop in sales and slower recovery rate compared to micro-sized firms with five to nine employees. The overall differences in the resilience between the two groups of micro-sized firms could potentially be due to a uniformly lower productivity level of firms with zero to four employees. Within the two groups of micro-sized firms, resilience is correlated with their liquidity position, managerial attitudes as well as their abilities. Using discriminant analysis, this paper confirms that a significant proportion of micro-sized firms mimic the behavior of larger firms in terms of their resilience to shocks and could potentially be "misclassified" as micro-sized. These findings have important implications for targeting and tailoring support for enhancing businesses' resilience to shocks
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  • 5
    Language: English
    Pages: 1 Online-Ressource (32 pages)
    Parallel Title: Erscheint auch als Grover, Arti Does Informality Depress Investments and Job Recovery? F.-L. Evidence from the COVID-19 Crisis in South Asia
    Keywords: Access To Finance ; Competitiveness and Competition Policy ; Covid-19 Pandemic Firm-Level Impact ; Crisis Recovery In Informal Economies ; Employment and Unemployment ; Firm's Investment Decision ; Informality ; Private Sector Development ; Private Sector Economics ; Social Protections and Labor ; World Bank Business Pulse Survey
    Abstract: Using three rounds of the World Bank's Business Pulse Surveys in South Asia, this paper quantifies the relationship between informality and firms' investment and employment decisions. Accounting for multidimensionality in definition and the margins of informality, the analysis suggests that first, informal firms remain credit and liquidity constrained before and during the crisis, especially the necessity firms. In the pre-crisis period, access to finance is correlated with the extensive margin of informality, while during the crisis, both margins of informality matter. Second, informal firms perceive uncertainty to be higher because of pessimistic expectations on recovery and lower ability to predict future sales, especially the necessity firms. Third, credit constraints and accentuated uncertainty among informal firms discourage investments. Finally, while employment growth is slow and gradual for formal firms as they begin to recover sales, job growth in informal firms does not correspond to the recovery. The results suggest that countries with a large informal sector may face unusually depressed investments and jobs recovery and may have to deploy additional policy levers to accelerate recovery in the post-crisis period
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  • 6
    Language: English
    Pages: 1 Online-Ressource (63 pages)
    Parallel Title: Erscheint auch als Constantinescu, Cristina Globally Engaged Firms in the COVID-19 Crisis
    Keywords: Business Cycles and Stabilization Policies ; Business Disruption ; Coronavirus ; Covid Impact On Exporters ; COVID-19 ; Export ; Global Value Chains ; Globally Engaged Firms ; International Economics and Trade ; International Trade and Trade Rules ; Macroeconomics and Economic Growth ; Pandemic Impact On Firms ; Recovery ; Supply Chain Disruption ; Trade ; Transport ; Transport and Trade Logistics
    Abstract: This paper analyzes the initial impact and recovery of globally engaged firms from the COVID-19 crisis. It uses rich survey data of nearly 65,000 firm-year observations in 45 countries spanning three waves of data collection. The findings are organized in a series of stylized facts, which suggest that although the pandemic had an immediate adverse impact on most firms, the globally engaged ones are recovering faster, possibly due to their higher capabilities. Among globally engaged firms, those directly involved with international markets show better recovery than the ones that were indirectly involved. These results mask wide variation by firm traits, sectoral attributes, and country characteristics. At the core of the recovery of globally engaged firms is their heightened response to the crisis by finding novel ways to adapt supply chains even in the presence of lockdowns and uncertainty. These firms swiftly digitalized, introduced new products and changed their markets and sources of inputs. Over and above their capabilities, global engagement cushions firms against shocks. Policymakers could therefore facilitate global linkages by providing information on potential markets and products, by making production flexible in terms of facilitating remote work, reducing the rigidity of contracts; and incentivizing financial institutions to issue instruments that reduce uncertainty risk
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  • 7
    ISBN: 9781464816703
    Language: English
    Pages: 1 Online-Ressource
    Parallel Title: Erscheint auch als
    Abstract: The spatial dimension of productivity and inclusive growth has moved to center stage. While the geographic concentration of economic activity has boosted productivity, growing disparities between prospering places and those left behind have polarized countries, while rapid urbanization has often led to dysfunctional cities. In response, governments have put forward a variety of spatial policies that include special economic zones, business incentives, transport corridors, revival of lagging areas, and development of new urban centers. 'Place, Productivity, and Prosperity' develops a framework for thinking through such spatially-targeted policies and assessing their social value, while presenting new evidence on key empirical issues. It highlights the constraints imposed by path dependence and coordination failures in reorienting the spatial economy, as well as the role of complementary policies, including market institutions, in enhancing the benefits and managing the downside risks with spatially-targeted interventions. The framework is applied to evaluate several popular spatial interventions--
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  • 8
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: 1 Online-Ressource (45 pages)
    Parallel Title: Erscheint auch als Dasgupta, Kunal Trade, Transport, and Territorial Development
    Keywords: Domestic Trade Costs ; Export Competitiveness ; Freight Costs ; Golden Quadrilateral ; International Economics and Trade ; International Trade ; Manufacturing Firms ; Shipping Cost ; Spatial Distribution of Economic Activity ; Territorial Development ; Trade Costs ; Trade Facilitation ; Transport
    Abstract: The spatial distribution of economic activity is known to depend on trade costs, both international and domestic. This paper examines the interplay between these external and internal trade costs using a model of trade and production that is tested with the organized manufacturing sector data for India from 1989 to 2009. The analysis establishes that the trade liberalization episode of the early 1990s helped spread manufacturing away from the primary region (districts closest to ports) to the secondary region between 1994 and 2000. Such dispersion of activity away from the primary to the secondary region was driven by high internal trade costs that insulated manufacturers from import competition. This trend reversed post-2000, a period of massive decline in internal trade costs, attributed to the Golden Quadrilateral highway upgrades. During this period, the districts along the highway network in the secondary region gained market access and manufacturing activity, while those off the network lost. Irrespective of the period, or the nature of trade costs, manufacturing activity in the interior region (districts farthest from ports) remained depressed, thereby emphasizing the importance of complementary conditions in driving territorial development
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  • 9
    Language: English
    Pages: 1 Online-Ressource (29 pages)
    Parallel Title: Erscheint auch als Grover, Arti Proximity without Productivity: Agglomeration Effects with Plant-Level Output and Price Data
    Keywords: Agglomeration ; Cities Structural Transformation ; City ; Education ; Health, Nutrition and Population ; Productivity ; Urban Labor Market ; Urban Population Density ; Wage Elasticity ; Wage Pressure Data
    Abstract: Recent literature suggests that the positive impact of population density on wages, the canonical measure of agglomeration effects, is multiples higher in developing countries than in advanced economies. This poses an urban productivity puzzle because on-the-ground observations do not suggest that cities in developing countries function especially well or are conducive to enhanced productivity. This paper uses manufacturing censuses from four countries at differing levels of income that allow separating plant output quantity from prices. It shows that higher wage elasticities with respect to density are due to higher marginal costs, and agglomeration elasticities of efficiency, physical total factor productivity, are in fact far lower in developing countries. Further, congestion costs decrease with country income. Both are consistent with often low rates of structural transformation that make cities in developing countries so-called "sterile agglomerations," which are populous but not efficient
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  • 10
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: 1 Online-Ressource (31 pages)
    Parallel Title: Erscheint auch als Print Version: Grover, Arti Coping with COVID-19: Does Management make Firms More Resilient?
    Abstract: The spread of COVID-19 has disrupted firm operations on a global scale. Using a comprehensive data set that observes over 3,000 firms in 16 countries, including several developing countries, shortly before and after the pandemic, we relate firms' structured management practices to post- COIVD-19 outcomes, and report four main findings. First, structured management practices are associated with more limited downside impacts of the crisis on firm sales and survival in manufacturing but not in services. Better managed manufacturing firms, on average, experience a smaller reduction in sales. Second, in both manufacturing and services, structured management practice scores are correlated with a firm's ability to adjust or convert product mix and shift to online work arrangements. Third, management scores are not correlated with firm's ability to adjust on employment margins. Fourth, the resilience of better managed firms is related primarily to incentive practices and is uncorrelated with operations or targeting practices. Monitoring practice scores show a modest correlation with a firm's ability to switch to remote work arrangements
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  • 11
    Language: English
    Pages: 1 Online-Ressource (35 pages)
    Parallel Title: Erscheint auch als Print Version: Brucal, Arlan Damaged by the Disaster: The Impact of COVID-19 on Firms in South Asia
    Abstract: To assess the impact of COVID-19 on firms, the World Bank and the International Finance Corporation conducted Business Pulse Surveys in several countries, including six in the South Asia region. Analysis focusing on the South Asia region suggests that, first, firms in the South Asia region have suffered disproportionately more from the economic brunt of the pandemic. Second, even within the region, COVID-19 did not affect all firms equally. Although exporters remain resilient by some metrics, firms that are smaller, female-led firms and those in vulnerable sectors suffered higher rates of closure. Third, while digital technologies have taken the center stage post-pandemic, the South Asia region lags in the adoption of these technologies. Finally, policy support for firms is key to building back better and resilient recovery, yet only a small share of firms can access public support. To be effective, firm support programs ought to be carefully customized and target firms based on the dominant channel through which COVID-19 affects them rather than their external attributes
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  • 12
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: 1 Online-Ressource (47 pages)
    Parallel Title: Erscheint auch als Print Version: Grover, Arti Agglomeration Economies in Developing Countries: A Meta-Analysis
    Keywords: Agglomeration Economies ; Labor Markets ; Meta-Analysis ; Productivity ; Social Protections and Labor ; Urban Development ; Urban Economic Development
    Abstract: Recent empirical work suggests that there are large agglomeration gains from working and living in developing country cities. These estimates find that doubling city size is associated with an increase in productivity by 19 percent in China, 12 percent in India, and 17 percent in Africa. These agglomeration benefits are considerably higher relative to developed country cities, which are in the range of 4 to 6 percent. However, many developing country cities are costly, crowded, and disconnected, and face slow structural transformation. To understand the true productivity advantages of cities in developing countries, this paper systematically evaluates more than 1,200 elasticity estimates from 70 studies in 33 countries. Using a frontier methodology for conducting meta-analysis, it finds that the elasticity estimates in developing countries are at most 1 percentage point higher than in advanced economies, but not significantly so. The paper provides novel estimates of the elasticity of pollution, homicide, and congestion, using a large sample of developing and developed country cities. No evidence is found for productivity gains in light of the high and increasing costs of working in developing country cities
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  • 13
    Language: English
    Pages: 1 Online-Ressource (24 pages)
    Parallel Title: Erscheint auch als Print Version: Grover, Arti Does Participation in Global Value Chains Reduce Spatial Inequalities within Countries?
    Abstract: This paper examines whether a country's participation in global value chains supports spatial convergence in the domestic economy. In theory, production disintegration through "unbundling" makes industrial development less lumpy, providing opportunities for smaller cities to plug and play in niche spaces while not having to fight the agglomeration economies offered by large metropolitan areas. Using data on the size distribution of cities within countries and the Organisation for Economic Co-operation and Development's Trade in Value Added database, the paper finds that integration in global value chains is strongly associated with greater concentration in large urban agglomerations, not less. A unit standard deviation increase in domestic value added in exports of intermediate products is associated with a decline of 0.1 standard deviation in the Zipf coefficient, an index measuring spatial dispersion. Spatial concentration is strongest for global value chains involving knowledge-intensive business services and high-technology manufacturing
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  • 14
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: 1 Online-Ressource (24 pages)
    Parallel Title: Erscheint auch als Print Version: Grover, Arti Why do Manufacturing Firms Sell Services? Evidence from India
    Abstract: Manufacturers in India are increasingly selling services-a phenomenon referred to as servitization. Both the proportion of manufacturers selling services and the share of services in total revenue of manufacturers increased threefold between 1994 and 2013. More productive manufacturers and those more exposed to import competition are more likely to sell services and to obtain a higher share of their revenue from services. A 10 percent increase in servitization is associated with 2.6 percent increase in manufacturing revenue. However, servitizing firms suffer a greater contraction in manufacturing revenue with increased import competition. This evidence suggests that servitization is not a successful defensive strategy to maintain manufacturing sales in the face of import competition, and it is more likely to be an exit strategy to flee import competition. Corroborative results indicate that past services sales are positively associated with the introduction of new services products and eventually a switch out of manufacturing and into services as the primary activity. Thus, servitization appears to be an aspect of "premature deindustrialization" in India, driven by the inability of manufacturers to cope with import competition, rather than structural transformation associated with a maturing manufacturing sector
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  • 15
    Language: English
    Pages: 1 Online-Ressource (60 pages)
    Parallel Title: Erscheint auch als Print Version: Cirera, Xavier Firm Recovery during COVID-19: Six Stylized Facts
    Keywords: Business Cycles and Stabilization Policies ; Coronavirus ; COVID-19 ; Disease Control and Prevention ; Employment ; Firm Performance ; Health, Nutrition and Population ; Industrial Economics ; Industry ; Labor Markets ; Macroeconomics and Economic Growth ; Pandemic Impact ; Private Sector Economics ; Recovery ; Sales Revenue
    Abstract: Building on prior work that documented the impact of COVID-19 on firms in developing countries using the first wave of Business Pulse Surveys, this paper presents a new set of stylized facts on firm recovery, covering 65,000 observations in 38 countries. This paper suggests that: One, since the outset of the pandemic, some aspects of business performance such as sales show signs of partial recovery. Two, other aspects remain challenging, including persistently high uncertainty and financial fragility. Three, recovery is heterogeneous across firms and more sensitive to firm-level attributes such as size, sector, and initial productivity than to country-level differences in the severity of the initial shock. In particular, larger and more productive firms are recovering faster, with implications for competition policy and allocative efficiency. Four, the decline in jobs has been steeper during the initial shock than the expansion in employment during recovery, raising the risk of a "jobless" recovery pattern. Five, the diffusion of digital technology and product innovation accelerated during the pandemic but did so unevenly, further widening gaps between small and large firms. Six, businesses now have more access to policy support, but poorer countries continue to lag behind and appropriate targeting of firms remains a challenge
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