{"title":"Infrastructure Quality and FDI Inflows: Evidence from the Arrival of High-Speed Internet in Africa","authors":"J. Mensah, N. Traore","doi":"10.1093/wber/lhad021","DOIUrl":"https://doi.org/10.1093/wber/lhad021","url":null,"abstract":"\u0000 Does ambient infrastructural quality affect foreign direct investment (FDI) in developing countries? This paper investigates how the arrival of high-speed internet in Africa triggered FDI into the region. It also explores the role of complementary infrastructure, such as access to electricity and road connectivity, in amplifying the impact of internet connectivity on investment. To causally estimate impacts, the paper exploits plausibly exogenous variations in access to high-speed internet induced by the staggered arrival of submarine fiber-optic internet cables and spatial variations in terrestrial fiber cable networks across locations on the continent. Findings from the paper indicate that access to high-speed internet induces FDI, particularly in the service sector, with the finance, technology, retail, and health services subsectors as the main beneficiaries. Access to (hard) infrastructure, such as electricity and roads, amplifies the impact of internet connectivity on FDI, thus highlighting the role of complementarities in the impact of infrastructure. Further, the results suggest that improvement in quality of governance and increased performance of incumbent firms are plausible mechanisms.","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116713310","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Social Protection Engel Curve","authors":"Michael Lokshin, M. Ravallion, Iván Torre","doi":"10.1093/wber/lhad016","DOIUrl":"https://doi.org/10.1093/wber/lhad016","url":null,"abstract":"\u0000 Why do richer countries spend a higher share of their income on social protection than poor countries? A newly assembled dataset on social protection spending for 142 countries since 1995 allows an exploration of alternate hypotheses, treating the pandemic period separately, as it entailed a large expansion in social protection efforts. While the mean income share devoted to social protection rises with income, this is attributable to multiple confounders, including relative prices, weak governance in low-income countries, and access to information-communication technologies. Controlling for these, social protection spending is similar between rich and poor countries. This was also true during the pandemic.","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"36 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129655957","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Employment Mismatches Drive Expectational Earnings Errors among Mozambican Graduates","authors":"Sam Jones, R. Santos, Gimelgo Xirinda","doi":"10.1093/wber/lhad018","DOIUrl":"https://doi.org/10.1093/wber/lhad018","url":null,"abstract":"\u0000 Biased beliefs about future labor-market earnings are commonplace. Based on a longitudinal survey of graduate work transitions in Mozambique, this study assesses the contribution of employment mismatches to a large positive gap between expected (ex ante) and realized (ex post) earnings. Accounting for the simultaneous determination of pecuniary and non-pecuniary work characteristics, employment mismatches are found to be material and associated with large earnings penalties. A decomposition of these expectational errors shows that around two-thirds are attributable to employment mismatches, suggesting job seekers systematically overestimate the ease of securing “good jobs.”","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-07-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130400697","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Female Education and Brideprice: Evidence from Primary Education Reform in Uganda","authors":"M. Nagashima, C. Yamauchi","doi":"10.1093/wber/lhad020","DOIUrl":"https://doi.org/10.1093/wber/lhad020","url":null,"abstract":"\u0000 Universal primary education (UPE) policies have been shown to improve educational attainment and delay marriage and childbearing, particularly among rural girls. This disproportionate improvement in female relative to male education can change the bargaining structure between the wife and the husband. Furthermore, with the expectation of this change, decisions about marriage-market entry, matching, and marital arrangements, such as brideprice, can change. In particular, greater female bargaining power can increase the share of marriages without a brideprice in settings where husbands may demand a refund upon divorce. Using first-hand data on marital transfers and exploiting Uganda’s UPE, which abolished primary school fees in 1997, this study shows that longer UPE exposure is associated positively with female education and negatively with brideprice practice. The results imply that UPE policies can affect women’s marital lives by empowering them in household decisions. The study also discusses the consistency of the results with other potential mechanisms, such as selective marriage-market entry, marital squeeze, and assortative matching.","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"99 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-07-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127548007","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Subsistence Farming and Factor Misallocation: Evidence from Ugandan Agriculture","authors":"B. Morando","doi":"10.1093/wber/lhad017","DOIUrl":"https://doi.org/10.1093/wber/lhad017","url":null,"abstract":"\u0000 This paper presents a model where misallocation in the agricultural factors of production is caused by transportation costs to and from local markets, which result in an inefficiently large share of inputs operated by less productive subsistence farmers. The model derives some testable predictions which are verified in the empirical analysis, based on a representative census of Ugandan farms. Specifically, subsistence farmers operate inefficiently high shares of land and capital and the efficiency losses are more severe in areas where subsistence farming is more widespread, due to lower connectivity with local markets. Conversely, there is no relationship between the level of misallocation and credit access and/or land-market activity. These findings suggest that transportation costs play a key role in determining the efficiency of agricultural input distribution and that land-market liberalization is a necessary but not sufficient condition to tackle misallocation.","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-07-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132353106","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
J. Bonan, Giovanna d’Adda, Mahreen Mahmud, Farah Said
{"title":"Nudging Payment Behavior: Evidence from a Field Experiment on Pay-as-You-Go Off-Grid Electricity","authors":"J. Bonan, Giovanna d’Adda, Mahreen Mahmud, Farah Said","doi":"10.1093/wber/lhad012","DOIUrl":"https://doi.org/10.1093/wber/lhad012","url":null,"abstract":"\u0000 This paper reports results from a randomized control trial with a pay-as-you-go (PAYG) solar system provider in Pakistan. In the default treatment, customers are told the amount to pay every month to keep the system active. In a first treatment, customers are assisted in planning this monthly payment. A second treatment discloses that payments can be made flexibly within the month. This disclosure may reduce contract cancellation by helping minimize transaction costs but may increase contract complexity and reduce discipline. A third treatment combines flexibility with assistance in planning payments. Disclosing flexibility increases contract cancellation relative to the default, but combining flexibility with planning offsets this effect. Treatment effects appear stronger among users facing high mental constraints and transaction costs. These findings support the idea that behavioral factors, such as inattention and commitment problems, lay behind the negative impact of flexibility on cancellation. The results suggest that providers of PAYG systems may face a trade-off between disclosing complex contractual features and customer retention. Planning helps customers handle the added complexity.","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130919261","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Mind the Gap: Schooling, Informality, and Fiscal Externalities in Nepal","authors":"Hoyt Bleakley, Bhanu Gupta","doi":"10.1093/wber/lhad013","DOIUrl":"https://doi.org/10.1093/wber/lhad013","url":null,"abstract":"Abstract While increasing years of schooling has been a long-standing development priority, the associated fiscal costs and benefits have been less studied, because of a lack of appropriate data. Recently, an UNESCO-funded project measured subsidies, by levels of schooling, from all levels of government, in eight developing countries including Nepal. The household-level Nepal Living Standards Measurement Survey provides information to estimate the degree of formality, tax payments, and benefit receipts as a function of schooling years. Using a simple Mincer-like model, this study estimates the fiscal externality of an additional year of school. It finds that within primary school, fiscal benefits and costs, on the margin, are quite balanced, with subsidies close to the present value of future taxes minus benefits. At higher levels of schooling, however, marginal fiscal benefits exceed costs by 5 percent of per capita consumption. This contrasts with previous literature on social returns and assumptions underlying multilateral development goals.","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135364176","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Long-Term Effects of an Education Stipend Program on Domestic Violence: Evidence from Bangladesh","authors":"Raisa Sara, Sadia Priyanka","doi":"10.1093/wber/lhad014","DOIUrl":"https://doi.org/10.1093/wber/lhad014","url":null,"abstract":"Abstract Intimate partner violence (IPV) remains a widespread global phenomenon. Among various factors, a low level of education is considered a significant risk factor for experiencing IPV. This paper evaluates whether a secondary school stipend program introduced in 1994 for rural girls affected the long-term prevalence of IPV in Bangladesh. The study exploits two sources of variation in the intensity of program exposure and geographic eligibility and finds that cohorts of rural women eligible for the program experienced significant declines in IPV. Evidence on mechanisms suggests that the program delayed marriage formation and changed partner quality, namely their education and employment, consistent with positive assortative matching resulting from women's improved educational attainment. There are no significant changes in labor market outcomes, decision making within the household, or women's attitude toward the acceptability of domestic violence. Marital matches present a plausible channel through which the program reduces the risk of IPV.","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135363893","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Effects of Community Health Worker Visits and Primary Care Subsidies on Health Behavior and Health Outcomes for Children in Urban Mali","authors":"Mark Dean, Anja Sautmann","doi":"10.1093/wber/lhad006","DOIUrl":"https://doi.org/10.1093/wber/lhad006","url":null,"abstract":"Abstract Subsidized primary care and community health worker (CHW) visits are important demand-side policies in the effort to achieve universal health care for children aged under 5. Causal evidence on the interaction between these policies is still sparse. This paper reports the effects on diarrhea prevention, curative care, and incidence as well as anthropometrics for 1,649 children from a randomized controlled trial in Bamako that cross-randomized CHW visits and access to free health care. CHW visits improve prevention and subsidies increase the use of curative care for acute illness, with some indication of positive interaction effects. There is no evidence of moral hazard, such as reduced preventive care among families receiving the subsidy. Although there are no significant improvements in malnutrition, diarrhea incidence is reduced by over 70 percent in the group that receives both subsidies and CHWs. Positive effects are concentrated among children under age 2.","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135861227","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Reducing Delay in Payments in Welfare Programs: Experimental Evidence from an Information Dissemination Intervention","authors":"Upasak Das, Amartya Paul, Mohit Sharma","doi":"10.1093/wber/lhad011","DOIUrl":"https://doi.org/10.1093/wber/lhad011","url":null,"abstract":"\u0000 This paper assesses the impact of an information dissemination intervention on the local-level implementation of the rural public works program in India. One key feature of the intervention is to provide information to workers once their wages get credited into their accounts. Using administrative and survey data, its impact on delays in wage payments and days of work along with the awareness levels of the entitlements is evaluated. The findings indicate a substantial reduction in payment delays and in trips made for wage withdrawal, in addition to improvements in awareness. The decrease in the payment delays in the treated villages persists even beyond the intervention period. While a limited impact on work days is observed during the intervention, a significant increase in the post-intervention period is found. The findings substantiated through qualitative evidence provide a platform for an innovative and cost-effective intervention to improve the implementation of social protection programs.","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"78 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124172492","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}