{"title":"Domestically “Flying Geese”: Regional Manufacturing Investment Flows within China","authors":"Jialiang Zhang, X. Zhang","doi":"10.1093/wber/lhad010","DOIUrl":"https://doi.org/10.1093/wber/lhad010","url":null,"abstract":"\u0000 This paper examines the evolving patterns of bilateral city-to-city manufacturing investment flows from 2000 to 2015 in China, which are aggregated from detailed firm-level investment transactions based on the administrative business registration database. The coastal regions were a more favorable destination for manufacturing investment prior to 2006 despite their higher wage levels. Since then, the trend has reversed, that is, the inland regions have attracted a growing share of manufacturing investment. The pattern is more pronounced for labor-intensive manufacturing industries. The wage gap between coastal and inland cities is the main driver behind the giant “flying geese”—the relocation of manufacturing firms from coastal to inland areas.","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"46 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-03-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133443628","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}
Felipe Barrera-Osorio, Adriana Kugler, Mikko Silliman
{"title":"Hard and Soft Skills in Vocational Training: Experimental Evidence from Colombia","authors":"Felipe Barrera-Osorio, Adriana Kugler, Mikko Silliman","doi":"10.1093/wber/lhad007","DOIUrl":"https://doi.org/10.1093/wber/lhad007","url":null,"abstract":"Abstract This paper studies the effects of an oversubscribed job-training program on skills and labor-market outcomes using both survey and administrative data. Overall, vocational training improves labor-market outcomes, particularly by increasing formal employment. A second round of randomization evaluates how applicants to otherwise similar job-training programs are affected by the extent that hard versus soft skills are emphasized in the curriculum. Admission to a vocational program that emphasizes technical relative to social skills generates greater short-term benefits, but these relative benefits quickly disappear, putting participants in the technical training on equal footing with their peers from the soft-skill training in under a year. Results from an additional randomization suggest that offering financial support for transportation and food increases the effectiveness of the program. The program fails to improve the soft skills or broader labor-market outcomes of women.","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"350 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-03-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135905367","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":"Taking Cover: Human Capital Accumulation in the Presence of Shocks and Health Insurance","authors":"Paulino Font-Gilabert","doi":"10.1093/wber/lhad008","DOIUrl":"https://doi.org/10.1093/wber/lhad008","url":null,"abstract":"\u0000 Using the expansion of a large-scale health-insurance program in Mexico and variation in local rainfall levels, this study explores whether the program-induced increase in healthcare coverage protected the cognitive attainment of primary school children in the event of adverse rainfall shocks. Results show that the universalization of healthcare mitigated the negative effect of atypical rainfall on test scores, particularly in more marginalized and rural areas. An analysis of the mechanisms at play shows a reduced incidence of sickness among children, lower demand for their time, and higher stability in household consumption among program-eligible families exposed to rainfall shocks.","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-03-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128510886","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 Economic Impact of Deepening Trade Agreements","authors":"Lionel Fontagné, Nadia Rocha, Michele Ruta, Gianluca Santoni","doi":"10.1093/wber/lhad005","DOIUrl":"https://doi.org/10.1093/wber/lhad005","url":null,"abstract":"Abstract This paper explores the economic impacts of preferential trade agreements, conditional on their level of ambition. It clusters 278 agreements, encompassing 910 provisions over 18 policy areas and estimates the trade elasticity for the different clusters. These elasticities are used in a series of general-equilibrium counterfactual situations for endowment economies, revealing that deepening existing agreements (the intensive margin of regional integration) could boost world trade by 3.9 percent and world GDP by 0.9 percent. The expected gains from deepening agreements within or across regions vary depending on the initial depth of agreements and the size of regional markets.","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"126 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-03-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134983435","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 Learning Crisis of Developing Country Elites: Lessons from PISA-D","authors":"L. Pritchett, M. Viarengo","doi":"10.1093/wber/lhad001","DOIUrl":"https://doi.org/10.1093/wber/lhad001","url":null,"abstract":"\u0000 How much of the learning crisis can be addressed through “inclusion”—the equalization of grade attainment and learning outcomes across groups (e.g., girls/boys, rural/urban, poor/rich)—and how much of the learning crisis requires improvement in the country's system of basic education to improve learning outcomes across the board? This study uses the data from the seven countries who participated in Programme for International Student Assessment (PISA) for Development (PISA-D) to show that for most countries and subjects the average learning outcome for the advantaged (male, urban, native-born, speakers of assessment language), and elite (95th percentile in PISA measured socio-economic status) students was below the Sustainable Development Goal (SDG) “minimum learning level” target of PISA level 2. Even if every child in these countries were fully “included”—had the same distribution of learning outcomes as the advantaged, SES elite, public school children—80 percent of all children would still fall short of proposed global minimum levels of learning.","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114581373","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":"Trade Shocks, Population Growth, and Migration","authors":"Sofía Fernández Guerrico","doi":"10.1093/wber/lhad009","DOIUrl":"https://doi.org/10.1093/wber/lhad009","url":null,"abstract":"\u0000 This paper examines the effect of trade-induced changes in Mexican labor demand on population growth and migration responses at the local level. It exploits cross-municipality variation in exposure to a change in trade policy between the United States and China that eliminated potential tariff increases on Chinese imports, negatively affecting Mexican manufacturing exports to the United States. Municipalities more exposed to the policy change, via their industry structure, experienced greater employment loss. In the five years following the change in trade policy, more exposed municipalities experience increased population growth, driven by declines in out-migration. Conversely, 6 to 10 years after the change in trade policy, exposure to increased trade competition is associated with decreased population growth, driven by declines in in-migration and return migration rates, and increased out-migration. The sluggish regional adjustment is consistent with high moving costs and transitions across sectors in the short term.","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"56 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116575963","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 Labor-Supply Consequences of Having a Child in China","authors":"Shing-Yi B. Wang","doi":"10.1093/wber/lhac032","DOIUrl":"https://doi.org/10.1093/wber/lhac032","url":null,"abstract":"\u0000 Combining eight years of panel data with an event study approach, this study shows that rural Chinese women’s labor supply falls following the birth of a child. In contrast, men’s labor supply does not fall after birth. Furthermore, a woman’s labor supply falls more following the birth of a son than a daughter. Following the birth of a son relative to a daughter, household cigarette consumption declines, and a mother’s leisure time, her probability of school enrollment, and her participation in decision-making increase. There are no increases in other investments in boys complementary to mothers’ time, such as food expenditures, breastfeeding, or immunizations. These results are consistent with the idea that mothers are rewarded more for having a son, leading them to have more leisure and work less.","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-02-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131847381","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}
Kalvin Bahia, Pau Castells, Genaro Cruz, T. Masaki, Carlos Rodríguez‐Castelán, Viviane Sanfelice
{"title":"Mobile Broadband, Poverty, and Labor Outcomes in Tanzania","authors":"Kalvin Bahia, Pau Castells, Genaro Cruz, T. Masaki, Carlos Rodríguez‐Castelán, Viviane Sanfelice","doi":"10.1093/wber/lhad003","DOIUrl":"https://doi.org/10.1093/wber/lhad003","url":null,"abstract":"\u0000 What are the impacts of expanding mobile broadband coverage on poverty, household consumption, and labor-market outcomes in developing countries? Who benefits from improved coverage of mobile internet? To respond to these questions, this paper applies a difference-in-differences estimation using panel household survey data combined with geospatial information on the rollout of mobile broadband coverage in Tanzania. The results reveal that being covered by 3G networks has a large positive effect on total household consumption and poverty reduction, driven by positive impacts on labor-market outcomes. Working-age individuals living in areas covered by mobile internet witnessed an increase in labor-force participation, wage employment, and non-farm self-employment, and a decline in farm employment. These effects vary by age, gender, and skill level. Younger and more skilled men benefit the most through higher labor-force participation and wage employment, while high-skilled women benefit from transitions from self-employed farm work into non-farm employment.","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"181 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-02-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127004241","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 Double Dividend of a Joint Tariff and VAT Reform: Evidence from Iran","authors":"Kowsar Yousefi, Mohammad Vesal","doi":"10.1093/wber/lhad002","DOIUrl":"https://doi.org/10.1093/wber/lhad002","url":null,"abstract":"\u0000 This paper provides empirical evidence on a novel complementarity between VAT and trade taxes. Downstream domestic firms require VAT receipts from importers to claim VAT on purchases, increasing incentives for honest reporting of imports. Trade gap, the difference between mirror and domestic trade reports in Iran at 6-digit HS disaggregation, is used to measure this complementarity. Iran introduced VAT in 2008 and, since then, has increased its rate from 3 to 9 percent. Difference-in-differences estimates show that a 1 percentage point increase in the VAT rate reduces the trade gap by about 2 percent. Consistent with the compliance mechanisms for VAT, a smaller effect for consumer products that have a shorter value chain is observed. Findings suggest that replacing tariffs with VAT results in a double dividend. Tax revenue might increase due to better tariff compliance and a broader VAT base.","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"427 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-02-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132651789","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":"Cash Transfers, Trust, and Inter-household Transfers: Experimental Evidence from Tanzania","authors":"David K Evans, Katrina Kosec","doi":"10.1093/wber/lhac030","DOIUrl":"https://doi.org/10.1093/wber/lhac030","url":null,"abstract":"Abstract Institutionalized conditional cash transfer (CCT) programs may affect pre-existing, informal safety nets such as inter-household transfers and trust among community members. This study reports on a randomized controlled trial used to test the impact of CCTs on various measures of trust and informal safety nets within communities in Tanzania. It provides evidence that the introduction of a CCT program increased program beneficiaries’ trust in other community members and their perceived ability to access support from other households (e.g., childcare). Although CCTs reduced the total size of transfers to beneficiary households in the community in the short run (after 1.75 years of transfers), that reduction had disappeared 2.75 years after transfers began. Taken together, this evidence suggests that formal CCT programs do not necessarily crowd out informal safety nets in the longer term, and they may in fact boost trust and support across households.","PeriodicalId":361118,"journal":{"name":"The World Bank Economic Review","volume":"33 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136117191","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}