{"title":"Management Capabilities and Performance of Firms in the Russian Federation","authors":"A. G. Goswami, Iván Torre","doi":"10.1596/1813-9450-8996","DOIUrl":"https://doi.org/10.1596/1813-9450-8996","url":null,"abstract":"Using the management and operational practices survey in the Russian Federation, this paper finds that an average Russian manufacturing firm adopts 43 percent of the structured management practices (a score of 0.43), a value that is far from the frontier (for example, the United States scores 0.62). This average mask the wide heterogeneity in practices, where a large share of firms adopt few structured management practices and only 3.5 percent of them have a score over 0.75. Consistent with the findings in other countries, better managed firms in Russia show stronger firm performance, measured as gross revenue per employee, value added per employee, total factor productivity, and employment growth. Improving the management score from the 10th to the 90th percentile is associated with an increase in sales per worker by 87 percent, value added per worker by 30 percent, and total factor productivity by 13.5 percent. What drives better management capabilities? Russian firms are similar to those in other countries, such that exporters and firms with foreign linkages are better managed. Switching from operating purely in the domestic market to being globally linked is associated with a significant increase in management capabilities. However, unlike the results in other countries, management capabilities in Russia are not associated with firm age, implying that firms do not learn to be better managed over their life cycle. This result points to the possibility of inefficient allocation of resources, such that learning and selection mechanism does not weed out the badly managed firms, perhaps due to the lack of pro-competitive forces.","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133713695","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":"Is 3D Printing a Threat to Global Trade? The Trade Effects You Didn't Hear About","authors":"C. Freund, Alen Mulabdic, M. Ruta","doi":"10.2139/ssrn.3792348","DOIUrl":"https://doi.org/10.2139/ssrn.3792348","url":null,"abstract":"In the mid-2000s, the production of hearing aids shifted almost entirely to 3D printing. Using difference-in-differences and synthetic control methods, this paper examines the effects of this shift on trade flows. The analysis finds that trade increased roughly 60 percent following the introduction of 3D printing. Revealed comparative advantage was reinforced, with exports growing most rapidly for middle- and high-income countries. The analysis also finds that developing countries increased their imports of hearing aids as a result of the innovation, benefitting consumers. As a robustness check, the paper examines 35 products that are partially 3D printed and finds positive and significant effects on trade. The results counter widespread views that 3D printing will shorten supply chains and reduce trade.","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133971466","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}
Esther O. Chung, L. Fernald, E. Galasso, Lisy Ratsifandrihamanana, A. Weber
{"title":"Caregiver Perceptions of Child Development: A Cross-Sectional Study","authors":"Esther O. Chung, L. Fernald, E. Galasso, Lisy Ratsifandrihamanana, A. Weber","doi":"10.1596/1813-9450-9030","DOIUrl":"https://doi.org/10.1596/1813-9450-9030","url":null,"abstract":"Parents play a crucial role in the promotion of early childhood development, and understanding parental perceptions of early childhood development may help enhance parental investments early in life. To explore this question, caregivers were asked to rank their child's intelligence in comparison with other children in the community, and the rankings were compared with children's scores on an assessment of developmental abilities across multiple domains. Using cross-sectional data on children ages 16-42 months in rural Madagascar, this paper documents the discordance between caregivers' perceived early childhood development with an interviewer-based measure of early childhood development. The paper examines the determinants of caregivers' under- and over-estimation of child development using multinomial logistic regressions. The study finds that caregiver perceptions of early childhood development in Madagascar do not align consistently with an interviewer-based measure. Approximately 8 percent of the caregivers under-estimated and almost 50 percent over-estimated their children's abilities. Better child nutritional status, caregivers with a greater belief in their influence on child intelligence, and higher socioeconomic status were associated with lower odds of under- or over-estimation of early childhood development. Further research is needed to understand the common cues that caregivers use to identify child development milestones, to inform the design of parenting interventions.","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"68 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127672979","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":"Eurobonds: A Quantitative Analysis of Joint-Liability Debt","authors":"Vasileios Tsiropoulos","doi":"10.1596/1813-9450-9017","DOIUrl":"https://doi.org/10.1596/1813-9450-9017","url":null,"abstract":"This paper assesses the consequences of implementing a joint liability debt system in a two-country small open economy model. With joint liability a default of one country makes the other participant liable for its debt. The results highlight a trade-off between the contagion risk, in the sense that this instrument may push some member states to default even though they are individually solvent, and cheaper access to credit on average, since lenders are at risk only if no participating sovereign is willing to service the debt. The findings suggest that the welfare consequences of this policy proposal hinge critically on the timing of its introduction: Introducing such instruments at the peak of the Eurozone crisis would have helped the Periphery and harm the Core member states, while its adoption during normal times has the potential to make all participants better-off.","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121155015","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":"Socioeconomic Resilience in Sri Lanka: Natural Disaster Poverty and Wellbeing Impact Assessment","authors":"Elliott Ash, Sergio Galletta, Tommaso Giommoni","doi":"10.1596/1813-9450-9015","DOIUrl":"https://doi.org/10.1596/1813-9450-9015","url":null,"abstract":"Traditional risk assessments use asset losses as the main metric to measure the severity of a disaster. This paper proposes an expanded risk assessment based on a framework that adds socioeconomic resilience and uses wellbeing losses as the main measure of disaster severity. Using an agent-based model that represents explicitly the recovery and reconstruction process at the household level, this risk assessment provides new insights into disaster risks in Sri Lanka. The analysis indicates that regular flooding events can move tens of thousands of Sri Lankans into transient poverty at once, hindering the country's recent progress on poverty eradication and shared prosperity. As metrics of disaster impacts, poverty incidence and well-being losses facilitate quantification of the benefits of interventions like rapid post-disaster support and adaptive social protection systems. Such investments efficiently reduce wellbeing losses by making exposed and vulnerable populations more resilient. Nationally and on average, the bottom income quintile suffers only 7 percent of the total asset losses but 32 percent of the total wellbeing losses. Average annual wellbeing losses due to fluvial flooding in Sri Lanka are estimated at US$119 million per year, more than double the asset losses of US$78 million. Asset losses are reported to be highly concentrated in Colombo district, and wellbeing losses are more widely distributed throughout the country. Finally, the paper applies the socioeconomic resilience framework to a cost-benefit analysis of prospective adaptive social protection systems, based on enrollment in Samurdhi, the main social support system in Sri Lanka.","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126908663","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":"Rusmod -- a Tool for Distributional Analysis in the Russian Federation","authors":"M. Matytsin, D. Popova, Samuel Freije-Rodriguez","doi":"10.1596/1813-9450-8994","DOIUrl":"https://doi.org/10.1596/1813-9450-8994","url":null,"abstract":"The purpose of this paper is to introduce applications of RUSMOD -- a microsimulation model for fiscal incidence analysis in the Russian Federation. RUSMOD combines household survey micro-data and fiscal policy rules to simulate the Russian tax-benefit system: the size and distribution of taxes collected and benefits paid, and the impact of the system on different population groups. Microsimulation models, such as RUSMOD, are habitually used in developed countries, and can be versatile budgetary policy tools. Using this model, the current tax-benefit system in Russia is examined. The impact of the system is measured across the income distribution, age groups, family types, localities, as well as across time. One of the applications of RUSMOD this paper aims to assess is the role of the tax-benefit system in explaining the incidence of informal employment in Russia. The paper investigates whether the existing system creates disincentives for formalization in terms of reducing disposable incomes and increasing poverty and inequality, and whether a hypothetical tax reform would be able to reduce the opportunity costs of formalization for informal workers, improve distributional outcomes, and increase fiscal revenues.","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"34 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115778131","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":"Entry Barriers, Idiosyncratic Distortions, and the Firm-Size Distribution","authors":"Roberto N. Fattal Jaef","doi":"10.1596/1813-9450-9027","DOIUrl":"https://doi.org/10.1596/1813-9450-9027","url":null,"abstract":"This paper studies the interaction between barriers to firm entry and distortions to allocative efficiency in a standard model of firm dynamics. We derive a strategy to infer entry barriers based on cross-country differences in the firm size distribution and idiosyncratic distortions. The inferred barriers resemble regulation-based indicators in advanced economies but are substantially higher in middle- and low-income countries. Regulation-based indicators cannot account for cross-country differences in average firm size and underestimate the aggregate productivity gains associated with their removal by up to 8 percent on average. (JEL D21, D24, H25, L11, L60)","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128382627","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":"Performance and Challenges of the Income Protection System for Older People in Ecuador","authors":"Ignacio Apella","doi":"10.1596/1813-9450-8978","DOIUrl":"https://doi.org/10.1596/1813-9450-8978","url":null,"abstract":"The purpose of this work is to analyze the performance of the Ecuadorian pension system, its challenges, and available policy options. Therefore, the study analyzes coverage, financing sufficiency, and sustainability indicators that were created based on information from the Encuesta Nacional de Empleo, Desempleo y Subempleo (National Employment, Unemployment and Underemployment Survey) that was carried out over 2003-16. Likewise, actuarial simulations are made by using the World Bank pension reform options simulation toolkit. The findings show that, although in the latest 13 years there has been coverage extension, resulting from an increase in reported employment and an extension of noncontributory pensions, current coverage is still insufficient. In addition to the challenge posed to coverage extension, in the medium term, population aging would exert some pressure on financial sustainability that, within the current framework, would imply a deficit trend starting in the mid-2030s. However, some public policy areas, parametric as well as structural, have been identified that, together with an extension of noncontributory coverage, may provide a more supportive and sustainable scheme.","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"20 2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125605816","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":"Location, Location, Location Revisited: Evidence from Antananarivo, Madagascar","authors":"Atsushi Iimi","doi":"10.1596/1813-9450-8958","DOIUrl":"https://doi.org/10.1596/1813-9450-8958","url":null,"abstract":"Understanding how land prices are determined is of particular importance for policy makers; however, there is little evidence in African countries, which are currently experiencing rapid urbanization. The paper examines the relationship between land prices and locational characteristics using data from Antananarivo, the capital of Madagascar. It is found that the land value gradients are relatively steep, indicating that the land and housing prices tend to overshoot in the middle of the city, pushing the poor away from the city to suburban areas. It is also found that access to transport infrastructure and services, such as minibuses, is an important determinant of land value. Not only transport connectivity, but also other factors, such as proximity to amenities and administrative centers, are found to be important. Better land management and urban transport policies are called for to promote these aspects in the city.","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"26 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134629479","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":"Conflict, Household Victimization, and Welfare: Does the Perpetrator Matter?","authors":"Heidi Kaila, M. Azad","doi":"10.1596/1813-9450-9019","DOIUrl":"https://doi.org/10.1596/1813-9450-9019","url":null,"abstract":"This paper studies the relationship between conflict and household welfare by using a detailed panel data set of household victimization across the most conflict-affected regions in Nigeria between 2010 and 2017, during a time characterized by a sharp increase in conflict. The North East region has been hardest hit with the recent Boko Haram insurgency. The North Central region has seen clashes between herders and farmers over land and resources. Several militant groups operate in the oil-producing Niger Delta region, where their aim is to extract resources by disrupting oil production. By exploiting the plausibly exogenous variation in the timing, intensity, and spatial distribution of victimization, we find that becoming a victim of conflict leads to higher food insecurity and decreased consumption. Since different types of actors have different motivations for their actions, the consequences of victimization might vary depending on the perpetrator. We find that events perpetrated by insurgents are the most detrimental to consumption, whereas food insecurity increases as a consequence of both insurgent and criminal activity. This is in line with the results being strongest in the North East, which also has the highest intensity of conflict. We also find that property-related events are more detrimental to consumption and food insecurity than are violent events. Likewise, we find suggestive evidence that violent events, as well as events perpetrated by insurgents and bandits, are detrimental to mental health. Our findings highlight the importance of collecting nuanced information of victimization in conflict-affected areas.","PeriodicalId":444500,"journal":{"name":"World Bank Policy Research Working Paper Series","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127879863","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}