The World Bank Economic Review

https://academic.oup.com/wber

List of Papers (Total 32)

Agriculture, Aid, and Economic Growth in Africa

How can foreign aid to agriculture support economic growth in Africa? This paper constructs a geographically indexed applied general equilibrium model that considers pathways through which aid might affect growth and structural transformation of labor markets in the context of soil nutrient variation, minimum subsistence consumption requirements, domestic transport costs, labor...

Erratum

Erratum

The Impact of Rural Pensions in China on Labor Migration

We study the impact of China’s new rural pension program on promoting migration of labor by applying a regression discontinuity analysis to this new pension program. The results reveal a perceptible difference in labor migration among adult children whose parents are just above and below the age of pension eligibility: The adult children with a parent just attaining the pension...

Can Agricultural Interventions Improve Child Nutrition? Evidence from Tanzania

Severely reduced height-for-age due to undernutrition is widespread in young African children, with serious implications for their health and later economic productivity. It is primarily caused by growth faltering due to hunger spells in critical periods of early child development. We assess the impact on early childhood nutrition, measured as height-for-age, of an agricultural...

Are Politically Connected Firms More Likely to Evade Taxes? Evidence from Tunisia

Are politically connected firms more likely to evade taxes? Using tax, social security, and customs records from Tunisia in which firms owned by former president Ben Ali and his family are identified, this paper demonstrates that connected firms were more likely to evade taxes. Ceteris paribus, connected firms are 4.6% more likely not to submit a tax declaration in spite of...

Exporters, Engineers, and Blue-collar Workers

This article investigates differences in the composition of employment between exporting and nonexporting firms. In particular, it asks whether exporting firms hire more engineers relative to blue-collar workers than nonexporting firms. In a stylized partial-equilibrium model, firms produce goods of varying quality and exporters tend to produce higher quality goods, which are...

Unitary or Noncooperative Intrahousehold Model? Evidence from Couples in Uganda

We present an overview of the evidence regarding the unitary, collective and non-cooperative models of household decision making and discuss how they can affect individual and household welfare. We then discuss the results of an artefactual experiment conducted in Uganda with spouses in order to test whether household members maximize common preferences, or instead are willing to...

On the Origins and Development of Pakistan's Soccer-Ball Cluster

Sialkot, Pakistan, is the world center of hand-stitched soccer-ball manufacturing. The existence of the cluster is puzzling and seems to argue against the “home market effect”, since there is little local demand for soccer balls. This paper traces the development of the cluster from its origins in the late 1800s and shows that it was rooted in an initial home market effect due to...

Should Human Rights Law Play a Role in Development?

Many human rights advocates believe that development agencies—agencies that define their mission as providing economic and technical aid to impoverished countries—should be required to respect and promote human rights law. This style of human rights imperialism should be resisted. While development agencies should obviously comply with domestic law and try to promote good rather...

Remittances and Vulnerability in Developing Countries

This paper examines how international remittances are affected by structural characteristics, macroeconomic conditions, and adverse shocks in recipient economies. We exploit a novel, rich panel data set, covering bilateral remittances from 103 Italian provinces to seventy-nine developing countries over the period 2005–2011. We find that remittances are negatively correlated with...

What Is the Aggregate Economic Rate of Return to Foreign Aid?

In recent years, academic studies have been converging towards the view that foreign aid promotes aggregate economic growth. We employ a simulation approach to: (i) validate the coherence of empirical aid-growth studies published since 2008; and (ii) calculate plausible ranges for the rate of return to aid. Our results highlight the long run nature of aid-financed investments and...

The Decision to Invest in Child Quality over Quantity: Household Size and Household Investment in Education in Vietnam

During Vietnam's two decades of rapid economic growth, its fertility rate has fallen sharply at the same time that its educational attainment has risen rapidly—macro trends that are consistent with the hypothesis of a quantity-quality tradeoff in child-rearing. We investigate whether the micro-level evidence supports the hypothesis that Vietnamese parents are in fact making a...

Risky Business: Political Instability and Sectoral Greenfield Foreign Direct Investment in the Arab World

Which foreign direct investments are most affected by political instability? Analysis of quarterly greenfield investment flows into countries in the Middle East and North Africa during the period from 2003 to 2012 shows that adverse political shocks are associated with significantly reduced investment inflows in the non-resource tradable sectors. By contrast, investments in...

Rural and Urban Migrants in India: 1983–2008

This paper characterizes the gross and net migration flows between rural and urban areas in India during the period 1983–2008. Using individual data from the National Sample Survey of India we show that the 5-year gross migration flows constitute about 10% of India's labor force and are stable over time. Migrants tend to be younger and more educated than nonmigrants. They also...

Overcoming Obstacles: The Internet's Contribution to Firm Development

Based on 49,610 firm observations across 117 developing and emerging countries for 2006–2011, we show that their respective industries’ adoption of the Internet had positive spillover effects on firms’ productivity across world regions and economies at different development stages. We find that even firms facing financial constraints, frequent power outages, skills shortages...

Scope of Economic Incentives and Abatement Technologies to Regulate a Natural System's Resilience in a General Equilibrium Model

This paper discusses a general equilibrium model consisting of a productive sector generating externalities on another sector having clean production, and on consumers, affecting the property of resilience of a natural system that feeds the economic system. The scope of efficiency of economic incentives is analyzed simultaneously with production activities in the polluting sector...

Impact of Ethiopia's Community Based Health Insurance on Household Economic Welfare

In 2011, in an attempt to increase access to health care and reduce household vulnerability to out-of-pocket health expenditure, the Government of Ethiopia launched a Community-Based Health Insurance Scheme (CBHI). This paper uses three rounds of household survey data, collected before and after the introduction of the CBHI pilot, to assess the impact of the scheme on household...

Determinants of Trade Policy: Insights from a Structural Gravity Model

This paper studies the impacts and determinants of trade policy: preferential trade agreements and multilateral opening. I estimate sector-level trade elasticities to calibrate a multi-sector Armington model of trade. I then use it to compute the price and real wage impacts of trade policy over 2001–2007, as well as the impacts of hypothetical, nonsigned trade agreements. I find...

World Price Shocks, Income, and Democratization

This paper shows how a world price shock can increase the likelihood that democratization must be used to resolve the threat of revolution. Initially, a ruling elite may be able to use trade policy to maintain political stability. But a world price shock can push the country into a situation where the elite face a commitment problem that only democratization can resolve. Because...