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  • Ghani, Ejaz
  • Washington, D.C : The World Bank  (30)
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  • 1
    Language: English
    Pages: 1 Online-Ressource (88 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Ghani, Ejaz Spatial Development and Agglomeration Economies in Services-Lessons from India
    Abstract: Although many studies consider the spatial pattern of manufacturing plants in developing countries, the role of services as a driver of urbanization and structural transformation is still not well understood. Using establishment level data from India, this paper helps narrow this gap by comparing and contrasting the spatial development of services with that in manufacturing. The study during the 2001-2010 period suggests that (i) services are more urbanized than manufacturing and are moving toward the urban and, by contrast, the organized manufacturing sector is moving away from urban cores to the rural periphery; (ii) manufacturing and services activities are highly correlated in spatial terms and exhibit a high degree of concentration in just a few states and industries; (iii) manufacturing in urban districts has a stronger tendency to locate closer to larger cities relative to services activity; (iv) infrastructure has a significant effect on manufacturing output, while human capital matters more for services activity; and lastly, (v) technology penetration, measured by the penetration of the Internet, is more strongly associated with services than manufacturing. Similar results hold when growth in activity is measured over the study period rather than levels. Manufacturing and services do not appear to crowd each other out of local areas
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  • 2
    Language: English
    Pages: 1 Online-Ressource (69 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Duranton, Gilles A Detailed Anatomy of Factor Misallocation in India
    Abstract: This paper complements the results of earlier work on factor misallocation. The paper first expands the methodology and provides two important decompositions for the main indices. The main result is that factor and output misallocation across districts is at least as important as misallocation within districts. Second, the paper provides an exploration of the service sector that complements earlier work on manufacturing. The analysis shows that labor plays a fundamental role for misallocation in services, whereas land is the determining factor in manufacturing. Third, the paper expands our earlier work on the effects of policies on misallocation by looking at a much broader range of policies, and find strong evidence of their effects on misallocation. Finally, the paper take steps towards the identification of the causal effect of misallocation on output per worker by developing a novel instrumental variable approach and a simulation approach that allows for checking the consistency of the empirical results
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  • 3
    Language: English
    Pages: 1 Online-Ressource (80 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Ghani, Ejaz Will Market Competition Trump Gender Discrimination in India?
    Abstract: Empowering women to engage in productive employment is not only critical to achieving gender equality but also critical for economic growth and poverty reduction. This paper studies the pattern of female activity and gender segmentation in the Indian manufacturing and services sectors. Although the share of women entrepreneurs and employees is larger in manufacturing than in services, segmentation based on gender is pervasive in both sectors. Theory, dating back to Gary Becker, suggests that competitive reforms should reduce the extent of this segregation. In spite of competition-inducing reforms such as investment in Golden Quadrilateral (GQ) highways, trade liberalization and domestic reforms that India undertook since the turn of the century, this pattern of gender based segmentation has not subsided over the years. Specifically, investments in GQ upgrades are found to have 0 effects on female activity and gender segmentation. Although there is some evidence of a negative correlation between segmentation among male employees and industry level trade liberalization reforms, overall it had a very limited impact on female participation in labor force and in reducing segmentation among female employees. Finally, domestic reforms that dismantled product reservations for small-scale industries induced greater participation among women in economic activity and are correlated with a modest decline in segmentation among male employees. Segregation among female employees is positively associated with these reforms
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  • 4
    Language: English
    Pages: 1 Online-Ressource (76 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Enache, Maria Structural Transformation in Africa : A Historical View
    Abstract: This paper presents evidence suggesting that the relationship between income and economic structure is shifting over time, with countries across the income distribution uniformly increasing the share of labor in service sectors and an increasingly less stark relationship between manufacturing intensity and gross value added per capita. The paper then assesses historical patterns of productivity convergence at a more detailed sector disaggregation than has been previously available. The analysis finds suggestive evidence that, at least in recent decades, convergent pressures in services industries are stronger than in manufacturing. Focusing on African economies, the paper presents a country-by-country historical analysis of structural change over the past four decades. Given the varied patterns and trends in structural change across African countries, it is difficult to characterize structural change from a single, continent-wide perspective. Some countries saw an early transition of labor out of agriculture, with manufacturing absorbing this labor in the decades prior to the 1990s, while another group of countries saw a later transition out of agriculture, where the services sector played a large role in labor reallocations in the 1990s and 2000s. Finally, the paper provides a country-by-country structural transformation scorecard to assess patterns of structural change in jobs and growth
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  • 5
    Language: English
    Pages: 1 Online-Ressource (89 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Duranton, Gilles Effects of Land Misallocation on Capital Allocations in India
    Abstract: Growing research and policy interest focuses on the misallocation of output and factors of production in developing economies. This paper considers the possible misallocation of financial loans. Using plant-level data on the organized and unorganized sectors, the paper describes the temporal, geographic, and industry distributions of financial loans. The focus of the analysis is the hypothesis that land misallocation might be an important determinant of financial misallocation (for example, because of the role of land as collateral against loans). Using district-industry variations, the analysis finds evidence to support this hypothesis, although it does not find a total reduction in the intensity of financial loans or those being given to new entrants. The analysis also considers differences by gender of business owners and workers in firms. Although potential early gaps for businesses with substantial female employment have disappeared in the organized sector, a sizeable and persistent gap remains in the unorganized sector
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  • 6
    Language: English
    Pages: 1 Online-Ressource (65 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Duranton, Gilles The Misallocation of Land and other Factors of Production in India
    Abstract: This paper quantifies the misallocation of manufacturing output and factors of production between establishments across Indian districts during 1989-2010. It first distills a number of stylized facts about misallocation in India, and demonstrates the validity of misallocation metrics by connecting them to regulatory changes in India that affected real property. With this background, the study next quantifies the implications and determinants of factor and output misallocation. Although more-productive establishments in India tend to produce more output, factors of production are grossly misallocated. A better allocation of output and factors of production is associated with greater output per worker. Misallocation of land plays a particularly important role in these challenges
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  • 7
    Language: English
    Pages: 1 Online-Ressource (58 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Ghani, Ejaz Informal Tradables and the Employment Growth of Indian Manufacturing
    Abstract: India's manufacturing growth from 1989 to 2010 displays two intriguing properties: 1) a substantial fraction of absolute and net employment growth is concentrated in informal tradable industries, and 2) much of this growth is connected to the development of one-person establishments. This paper investigates the causes and determinants of these growth patterns. The rapid urbanization of the informal sector plays the strongest role, while there is some evidence for subcontracting by the formal sector and a "push" entrepreneurship story. The paper also finds modest connections of this growth to rising female labor force participation. The connection between the presence of informal manufacturing and local productivity levels is strong, and varies across urban and rural areas in ways that bolster urbanization and subcontracting hypotheses
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  • 8
    Language: English
    Pages: Online-Ressource (49 p)
    Edition: 2014 World Bank eLibrary
    Parallel Title: Ghani, Ejaz Regional Diversity and Inclusive Growth in Indian Cities
    Abstract: This paper examines the employment growth of Indian districts from 2000 to 2010 in the manufacturing and services sectors. Specialization and diversity metrics that combine industries in both sectors are calculated and related to subsequent job growth. The analysis finds robust and consistent evidence that the diversity of industries in the district across the two sectors links to subsequent job growth. Somewhat surprisingly, this link finds its strongest expression outside typical stories about the role of diversity. For example, the growth is strongest in rural areas of districts and in districts with low population density. Diversity correlates with disproportionately higher employment growth in the informal sector and plays a role in generating employment in the district's smaller industries. These findings point toward the "inclusive" nature of diversity-driven growth and highlight a potentially important agenda item for policy makers concerned with inclusive development
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  • 9
    Language: English
    Pages: Online-Ressource (66 p)
    Edition: 2014 World Bank eLibrary
    Parallel Title: Ghani, Ejaz Spatial Dynamics of Electricity Usage in India
    Abstract: India's manufacturing sector has undergone many spatial adjustments since 1989, including, for example, the organized sector's migration to rural locations, the powerful rise of informal manufacturing within cities, and the development of intermediate cities for manufacturing. This paper investigates the impact of these spatial adjustments for electricity usage in India's manufacturing sector. Striking spatial differences in energy usage exist, and whether spatial adjustments exacerbate or alleviate energy consumption strains is important for issues ranging from reducing India's power blackouts to stemming rising pollution levels. Using detailed surveys for the organized and unorganized sectors, the analysis finds that electricity usage per unit of output in urban plants declined steadily during 1989-2010. In the rural areas, by contrast, electricity consumption per unit of output for organized sector plants peaked in 2000 and thereafter declined. Decomposing the observed trends in aggregate electricity usage from 2000 onwards, the paper finds that most reductions in electricity usage per unit of output came from reductions in existing sites of activity (defined through state-industry-urban/rural cells). The second biggest factor leading to reduced usage was lower usage in fast-growing sectors. By contrast, spatial movements of manufacturing activity across India did not significantly change usage levels and may have even increased them. This appears to have been in part because of the split nature of the mobility, with organized and unorganized sectors migrating in opposite directions
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  • 10
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: Online-Ressource (25 p)
    Edition: 2014 World Bank eLibrary
    Parallel Title: Ghani, Ejaz Can Service Be a Growth Escalator in Low-Income Countries?
    Abstract: Several high-level reports have raised the concern that low-income countries, especially in Africa, are experiencing premature de-industrialization. Have the latecomers to development missed the boat? Are they growing without any structural transformation? Not really. Although their manufacturing sector is not growing, they are benefitting from the Third Industrial Revolution which has enabled them to catch up faster. As services produced and traded across the world expand with advances in technology and globalization, the possibilities for low-income countries to grow faster based on their comparative advantage increases. That comparative advantage can just as easily be in services as in manufacturing. Growth escalators faced by the Lions in Africa may turn out to be different than that experienced by the East Asian Tigers
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  • 11
    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
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  • 12
    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
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  • 13
    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
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  • 14
    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
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  • 15
    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
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  • 16
    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
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  • 17
    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
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  • 18
    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
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  • 19
    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
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  • 20
    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
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  • 21
    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
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  • 22
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    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
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  • 23
    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
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  • 24
    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
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  • 25
    Language: English
    Pages: Online-Ressource (20 p)
    Edition: 2012 World Bank eLibrary
    Parallel Title: Klaus Desmet The Spatial Development of India
    Abstract: In the last two decades the Indian economy has been growing unabatedly, with memories of the Hindu rate of growth rapidly fading. But this unprecedented growth has also resulted in widening spatial disparities. While cities such as Hyderabad have emerged as major clusters of high development, many rural areas have been left behind with little development benefits accruing to them. India's mega-cities have continued to grow. This situation raises a number of important policy questions. Should India aim to spread development more equally across space? Are India's cities becoming too large? Should the government invest in infrastructure in the large cities to reduce congestion or in medium-sized locations to facilitate the emergence of new economic clusters? What are the tradeoffs between agglomeration economies and congestion costs? How different is Indias experience compared with China and USA?
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  • 26
    Language: English
    Pages: Online-Ressource (41 p)
    Edition: 2012 World Bank eLibrary
    Parallel Title: Ghani, Ejaz What Explains Big Gender Disparities in India?
    Abstract: Despite rapid economic growth, gender disparities in women's economic participation have remained deep and persistent in India. What explains these huge gender disparities? Is it poor infrastructure, limited education, and gender composition of the labor force and industries? Or is it deficiencies in social and business networks and a low share of incumbent female entrepreneurs? This paper analyzes the spatial determinants of female entrepreneurship in India in the manufacturing and services sectors. Good infrastructure and education predict higher female entry shares. There are strong agglomeration economies in both manufacturing and services, where higher female ownership among incumbent businesses within a district-industry predicts a greater share of subsequent entrepreneurs will be female. Moreover, higher female ownership of local businesses in related industries (similar labor needs, input-output markets) predicts greater relative female entry rates. Gender networks thus clearly matter for women's economic participation. However, there is a need to develop a better understanding of how gender networks influence aggregate efficiency. There is no doubt that gender empowerment can be the escalator to realizing human potential and for creating a robust platform for growth and job creation
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  • 27
    Language: English
    Pages: Online-Ressource (49 p)
    Edition: 2012 World Bank eLibrary
    Parallel Title: Ghani, Ejaz What Makes Cities More Competitive?
    Abstract: Policy makers in both developed and developing countries want to make cities more competitive, attract entreprepreneurs, boost economic growth, and promote job creation. The authors examine the spatial location of entrepreneurs in India in manufacturing and services sectors, as well as in the formal and informal sectors, in 630 districts spread across 35 states/union territories. They quantify entrepreneurship as young firms that are less than three years old, and define entry measures through employment in these new establishments. They develop metrics that unite the incumbent industrial structures of districts with the extent to which industries interact through the traditional agglomeration channels. The two most consistent factors that predict overall entrepreneurship for a district are its education and the quality of local physical infrastructure. These patterns are true for manufacturing and services. These relationships are much stronger in India than those found for the United States. The authors also find strong evidence of agglomeration economies in India's manufacturing sector. This influence is through both traditional Marshallian economies like a suitable labor force and proximity to customers and through the Chinitz effect that emphasizes small suppliers. India's footprints in structural transformation, urbanization, and manufacturing sector are still at an early stage. At such an early point and with industrial structures not yet entrenched, local policies and traits can have profound and lasting impacts by shaping where industries plant their roots
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  • 28
    Language: English
    Pages: Online-Ressource (46 p)
    Edition: 2012 World Bank eLibrary
    Parallel Title: Ghani, Ejaz Is India's Manufacturing Sector Moving Away from Cities?
    Abstract: This paper investigates the urbanization of the Indian manufacturing sector by combining enterprise data from formal and informal sectors. It finds that plants in the formal sector are moving away from urban and into rural locations, while the informal sector is moving from rural to urban locations. Although the secular trend for India's manufacturing urbanization has slowed down, the localized importance of education and infrastructure has not. The results suggest that districts with better education and infrastructure have experienced a faster pace of urbanization, although higher urban-rural cost ratios cause movement out of urban areas. This process is associated with improvements in the spatial allocation of plants across urban and rural locations. Spatial location of plants has implications for policy on investments in education, infrastructure, and the livability of cities. The high share of urbanization occurring in the informal sector suggests that urbanization policies that contain inclusionary approaches may be more successful in promoting local development and managing its strains than those focused only on the formal sector. Cities are evolving in India from places of goods production to forges of human capital and coping mechanisms for survival
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  • 29
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: Online-Ressource (44 p)
    Edition: 2009 World Bank eLibrary
    Parallel Title: Ghani, Ejaz How Will Changes in Globalization Impact Growth in South Asia ?
    Abstract: The current global crisis may change globalization itself, as both developed and developing countries adjust to global imbalances that contributed to the crisis. Will these changes help or hinder economic recovery and growth in South Asia? This is the focus of this paper. The three models of globalization - trade, capital, and economic management - may not be the same in the future. Changes in globalization could change the composition of trade flows, capital flows, and economic management, which in turn, could accelerate or restrain growth. South Asia is somewhat peculiar and different from other regions in how it has globalized, although there is a lot of diversity within the region. Its trade characteristics are different. India's growth has been spearheaded by exports of modern services and less by goods exports. Modern service trade tends to be more resilient compared with goods trade. Globalization of services is still at an early stage. So, as consumers pull back in the United States, service trade is likely to be less impacted compared to goods trade. Trade also contributes to growth through knowledge spillovers, externalities, and learning. The global crisis has not reduced the stock of global knowledge. Changes in capital flows are also not likely to have a big impact on growth in South Asia, as South Asia's investments are largely driven by domestic savings. Its dependence on foreign capital is low. South Asia has attracted capital flows that are less volatile. Remittances, which are more resilient, have been the dominant form of capital inflows, exceeding foreign direct investment and other inflows.This global downturn calls for counter-cyclical economic management. But South Asia has limited room for fiscal stimulus, given high debt-to-gross domestic product ratios. Nevertheless, reduced commodity prices have created some fiscal space that can be used for growth enabling infrastructure and safety nets. As South Asia undergoes structural transformation, the region is well positioned to bounce back with global economic recovery
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  • 30
    Language: English
    Pages: Online-Ressource (1 online resource (26 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Ghani, Ejaz Productivity Growth, Capital Accumulation, and the Banking Sector
    Keywords: Accounting ; Accounting Framework ; Bank ; Banking ; Banking Sector ; Banking System ; Banks ; Banks and Banking Reform ; Capital ; Capital Employed ; Cred Debt ; Debt Markets ; Economic Growth ; Economic Theory and Research ; Emerging Markets ; Finance and Financial Sector Development ; Financial Literacy ; Foreign Exchange ; Labor ; Labor Policies ; Lending ; Macroeconomics and Economic Growth ; Poverty Reduction ; Private Sector Development ; Pro-Poor Growth ; Productivity ; Projects ; Risk ; Risk Management ; Savings ; Social Protections and Labor ; Wages ; Accounting ; Accounting Framework ; Bank ; Banking ; Banking Sector ; Banking System ; Banks ; Banks and Banking Reform ; Capital ; Capital Employed ; Cred Debt ; Debt Markets ; Economic Growth ; Economic Theory and Research ; Emerging Markets ; Finance and Financial Sector Development ; Financial Literacy ; Foreign Exchange ; Labor ; Labor Policies ; Lending ; Macroeconomics and Economic Growth ; Poverty Reduction ; Private Sector Development ; Pro-Poor Growth ; Productivity ; Projects ; Risk ; Risk Management ; Savings ; Social Protections and Labor ; Wages
    Abstract: How did the East Asian miracle turn into one of the worst financial crises of the century? A case study of Malaysia provides some answers. - How did the East Asian miracle turn into one of the worst financial crises of the century? Ghani and Suri address the question using Malaysia as a case study. Many discussions of the East Asian crisis address proximate and short-run causes of the crisis, such as the current account deficit, exchange rate misalignment, and disproportionate short-run external debt relative to foreign exchange reserves. These indicators of vulnerability are themselves endogenous outcomes of deeper institutional features. Ghani and Suri argue that some long-term features of the development strategy that helped sustain high growth in the first place also contributed to the economy's increasing vulnerability. High output growth was driven by rapid growth in capital stock, for example. The banking sector played a critical role in transforming (and accelerating the transformation of) large savings into capital accumulation. But the banking sector may not have been allocating capital efficiently. Ghani and Suri find that the rapid growth in bank lending in Malaysia is negatively associated with total factor productivity growth. On the other hand, the economy's other structural strengths, such as openness to foreign direct investment and technology, helped improve productivity growth. Malaysia's exceptional growth record over the past quarter century was driven largely by the growth in physical capital stock. Total factor productivity growth may have slowed in the late 1990s, and sustaining high output growth will require greater emphasis on productivity improvements. Policies that encouraged the flow of foreign direct investment and better access to imported capital goods contributed to productivity growth. But rapid growth in bank lending relative to GDP may have slowed it. How policymakers can best slow the growth of credit is a question that remains unanswered. This paper - a product of the Poverty Reduction and Economic Management Sector Unit, East Asia and Pacific Region - is part of a larger effort in the region to better understand past and future sources of growth. The authors may be contacted at eghaniworldbank.org or vsuri@worldbank.org
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