WorldCat Identities

World Bank Development Research Group Investment Climate Team

Overview
Works: 26 works in 57 publications in 1 language and 833 library holdings
Genres: Case studies 
Classifications: HG3881.5.W57, 330.072
Publication Timeline
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Most widely held works by World Bank
After the big bang? : Obstacles to the emergence of the rule of law in post-communist societies by Karla Hoff( )

6 editions published in 2002 in English and held by 55 WorldCat member libraries worldwide

With the collapse of communism in Eastern Europe and the Soviet Union in 1989-91, many economic reformers supported "Big Bang" privatization--the rapid transfer of state-owned enterprises to private individuals. It was hoped that Big Bang privatization would create the conditions for a demand-led evolution of legal institutions. But there was no theory to explain how this process of institutional evolution, including a legal framework for the protection of investors, would occur and, in fact, it has not yet occurred in Russia, in other former Soviet Union countries, in the Czech Republic, and elsewhere. A central reason for that, according to many scholars, is the weakness of the political demand for the rule of law. To shed light on this puzzle, Hoff and Stiglitz consider a model where the conditions for the emergence of the rule of law might be interpreted as highly favorable. Individuals with control rights over privatized assets can collectively bring about the rule of law simply by voting for it. These individuals are concerned with the wealth they can obtain from the privatized assets, and have two alternative strategies: building value and stripping assets. Building value under the rule of law yields higher benefits to a majority than stripping assets under no rule of law. But uncertainty about when the rule of law will be established may lead some individuals to choose an economic strategy--stripping assets, including converting corporate assets to private use--that gives them an interest in postponing the establishment of the rule of law. And therefore in the succeeding period, the rule of law may again not be in place, and so again individuals may strip assets. If they do, some of them may again have an interest in postponing the establishment of the rule of law. And so a weak demand for the rule of law can persist. The contribution of the paper is to show that the view that once stripping has occurred, the strippers will say "enough" and by supporting the rule of law seek public protection of their gains, is flawed. By abstracting from the obvious problem that strippers who obtain great wealth can buy special favored treatment from the state, the model highlights two less obvious flaws in the optimistic view about the Big Bang: First, that the asset-strippers can remove the assets from exposure to further stealing, and in that case they do not care about public protection for their gains. And second, that the perceived justice of a system is important to gaining the cooperation of those involved in the process of producing the rule of law (judges, regulators, jurors, potential offenders). Accordingly, state protection of asset strippers may be infeasible, even under an ostensible rule of law. Knowing this, strippers will be less supportive of the rule of law. The model makes one further point: what is at issue is how fast the rule of law will emerge. The presumption of the Big Bang strategy was that the faster state property was turned over to private hands, the faster a true market economy, including the rule of law, would be established. The analysis shows that, even if eventually a rule of law is established, the Big Bang may put into play forces that delay the establishment of the rule of law. The tortoise once again may beat the hare! Finally, Hoff and Stiglitz analyze the impact of certain policies, such as the particular structure of privatization and monetary policy. Policies that enhance the returns to investment and wealth creation rather than asset stripping not only serve to strengthen the economy in the short run, but enhance political support for the rule of law and thus put it in a position for stronger long-term growth. This paper--a product of the Investment Climate Team, Development Research Group--is part of a larger effort in the group to understand the evolution of property rights institutions
Short-run pain, long-run gain : the effects of financial liberalization by Graciela Laura Kaminsky( )

5 editions published in 2002 in English and held by 53 WorldCat member libraries worldwide

Kaminsky and Schmukler examine the short- and long-run effects of financial liberalization on capital markets. To do so, they construct a new comprehensive chronology of financial liberalization in 28 developed and emerging economies since 1973. The authors also construct an algorithm to identify booms and busts in stock market prices. The results indicate that financial liberalization is followed by more pronounced boom-bust cycles in the short run. But financial liberalization leads to more stable markets in the long run. Finally, the authors analyze the sequencing of liberalization and institutional reforms to understand the contrasting short- and long-run effects of liberalization. This paper--a product of the Investment Climate Team, Development Research Group--is part of a larger effort in the group to understand financial globalization and integration. The study was jointly funded by the Latin American Regional Studies Program and the Research Support Budget under the research project "Understanding Capital Market Crises in Emerging Economies
Social polarization, political institutions, and country creditworthiness by Philip Keefer( )

1 edition published in 2002 in English and held by 33 WorldCat member libraries worldwide

Boondoggles and expropriation rent-seeking and policy distortion when property rights are insecure by Philip Keefer( )

1 edition published in 2002 in English and held by 33 WorldCat member libraries worldwide

Financial globalization unequal blessings by Augusto de la Torre( )

1 edition published in 2002 in English and held by 33 WorldCat member libraries worldwide

When is external debt sustainable? by Aart Kraay( Book )

2 editions published in 2004 in English and held by 24 WorldCat member libraries worldwide

Kraay and Nehru empirically examine the determinants of "debt distress," which they define as periods in which countries resort to exceptional finance in any of three forms: (1) significant arrears on external debt, (2) Paris Club resecheduling, and (3) nonconcessional International Monetary Fund lending. Using probit regressions, the authors find that three factors explain a substantial fraction of the cross-country and time-series variation in the incidence of debt distress: the debt burden, the quality of policies and institutions, and shocks. They show that these results are robust to a variety of alternative specifications, and that their core specifications have substantial out-of-sample predictive power. The authors also explore the quantitative implications of these results for the lending strategies of official creditors. This paper--a joint product of Investment Climate, Development Research Group, and Heavily Indebted Poor Countries (Africa and Latin America), Poverty Reduction and Economic Management Network--is part of a larger effort in the Bank to study debt sustainability issues
Boondoggles and expropriation : rent-seeking and policy distortion when property rights are insecure by Philip Keefer( Book )

4 editions published in 2002 in English and held by 23 WorldCat member libraries worldwide

Most analyses of property rights and economic development point to the negative influence of insecure property rights on private investment. Keefer and Knack focus instead on the largely unexamined effects of insecure property rights on government policy choices. They identify one significant anomaly--dramatically higher public investment in countries with insecure property rights--and use it to make the following broad claims about insecure property rights: * They increase rent-seeking. * They may reduce the incentives of governments to use tax revenues for productive purposes, such as public investment. * They do so whether one regards the principal problem of insecure property rights as the maintenance of law and order, which government spending can potentially remedy, or as the threat of expropriation by government itself, and therefore not remediable by government spending. The authors present substantial empirical evidence to support these claims. This paper--a product of the Investment Climate and Public Services Teams, Development Research Group--is part of a larger effort in the group to investigate the institutional roots of effective government policy
Telecommunication reform in Ghana by Luke Haggarty( Book )

3 editions published in 2003 in English and held by 23 WorldCat member libraries worldwide

Finance and income inequality : test of alternative theories by George R. G Clarke( Book )

2 editions published in 2003 in English and held by 22 WorldCat member libraries worldwide

What does political economy tell us about economic development and vice versa? by Philip Keefer( Book )

2 editions published in 2004 in English and held by 22 WorldCat member libraries worldwide

Keefer reviews how three pillars of political economy--collective action, institutions, and political market imperfections--help us answer the question: Why do some countries develop and others do not? Each makes tremendous advances in our understanding of who wins and who loses in government decisionmaking, generally, but only a subset of this literature helps us answer the question. The study of political market imperfections strongly suggests that the lack of credibility of pre-electoral political promises and incomplete voter information are especially robust in explaining development outcomes. From the institutional literature, the most powerful explanation of contrasting development outcomes links political checks and balances to the credibility of government commitments. This paper--a product of Investment Climate, Development Research Group--is part of a larger effort in the group to understand the political economy of economic development
New tools for studying network industry reforms in developing cuntries : the telecommunications and electricity regulation database by Scott Wallsten( Book )

2 editions published in 2004 in English and held by 22 WorldCat member libraries worldwide

Infrastructure industries-including telecommunications, electricity, water, and gas-underwent massive structural changes in the 1990s. During that decade, hundreds of privatization transactions valued at billions of dollars were completed in these sectors in developing and transition economies. While privatization has received the most attention, reforms also included market liberalization, structural changes like unbundling, and the introduction of new laws and regulations. To date, regulations have received far less attention than their potential economic effects warrant, largely due to lack of data. In order to address this problem, the authors set out to compile a comprehensive and consistent dataset through an extensive survey of telecommunications and electricity regulators in developing countries. The authors describe the surveys and the resulting database. The database of telecommunications regulations includes 178 variables on regulatory governance and content in 45 countries. The database of electricity regulations includes 374 variables in 20 countries
Belief systems and durable inequalities an experimental investigation of indian caste by Karla Hoff( Book )

2 editions published in 2004 in English and held by 21 WorldCat member libraries worldwide

If discrimination against an historically oppressed social group is dismantled, will the group forge ahead? Hoff and Pandey present experimental evidence that a history of social and legal disabilities may have persistent effects on a group's earnings through its impact on individuals' expectations. In the first experiment, 321 high-caste and 321 low-caste junior high school male student volunteers in rural India performed the task of solving mazes under economic incentives. There were no caste differences in performance when caste was not publicly revealed, but making caste salient created a large and robust caste gap. When a nonhuman factor influencing rewards (a random draw) was introduced, the caste gap disappeared. To test whether the low caste's anticipation of prejudicial treatment caused the caste gap, the authors conducted a second experiment that manipulated the scope for discretion in rewarding performance. When the link between performance and payoffs was purely mechanical, making caste salient did not affect behavior. Instead, it was in the case where there was scope for discretion and judgment in rewarding performance that making caste salient had an effect. The results suggest that when caste identity is salient, low-caste subjects expect that others will judge them prejudicially. Mistrust undermines motivation. The experimental design enables the authors to exclude as explanations of the caste gap in performance socioeconomic differences and a lack of self-confidence by low-caste participants. This paper--a product of Investment Climate, Development Research Group--is part of a larger effort in the group to understand social exclusion--why certain social groups in certain localities remain poor and disempowered, while others enjoy greater mobility and power
Financial intermediation and growth : Chinese style by Genevieve Boyreau-Debray( Book )

2 editions published in 2003 in English and held by 21 WorldCat member libraries worldwide

Boyreau-Debray analyzes the relationship between growth and financial intermediation at the subnational level within China. Does the quality of the banking sector in a province affect its rate of growth? Do state and nonstate banking sectors perform differently? Does the structure of the local banking sector affect the rate of provincial economic growth? To answer these questions, the author first uses evidence on the fragmentation of regional capital markets to justify the existence of local credit channels. Second, using a dataset of 26 provinces between 1990 and 1999, she defines and introduces indicators of local banking development into the traditional growth regression framework using the GMM-system estimator. The results suggest that credit extended by the banking sector at the state level has a negative impact on provincial economic growth. This negative effect appears to be attributable to the burden of supporting the state-owned corporate sector rather than to the poor performance of state-owned banks. Moreover, provinces with more diversified banking sectors appear to grow faster. This paper--a product of Investment Climate, Development Research Group--is part of a larger effort in the group to understand China's economic and financial development
Social polarization, political institutions, and country creditworthiness by Philip Keefer( Book )

4 editions published in 2002 in English and held by 20 WorldCat member libraries worldwide

The literature argues that the presence of multiple veto players (government decisionmakers) with polarized interests increases the credibility of sovereign commitments, but reduces the ability of governments to adjust policies in the event of exogenous shocks that jeopardize their ability to honor their commitments. In the case of sovereign lending, if the first effect prevails, countries would be regarded as more creditworthy; if the second, less. Keefer and Knack address two issues. First, using measures of country creditworthiness, they ask whether the net effect of multiple veto players is positive or negative. Second, though, the authors go beyond the existing literature to argue that the net effect of multiple veto players depends on the nature of social polarization in a country. In particular, they argue that political competition is fundamentally different in countries exhibiting ethnic polarization than in countries polarized according to income or wealth. The evidence supports the prediction that multiple veto players matter more when countries are more ethnically polarized, but less when income inequality is greater. This paper--a joint product of the Investment Climate and Public Services Teams, Development Research Group--is part of a larger effort in the group to understand the interaction of social polarization and institutions
Institutions, trade, and growth : revisiting the evidence by David Dollar( Book )

2 editions published in 2003 in English and held by 20 WorldCat member libraries worldwide

Several recent papers have attempted to identify the partial effects of trade integration and institutional quality on long-run growth using the geographical determinants of trade and the historical determinants of institutions as instruments. Dollar and Kraay show that many of the specifications in these papers are weakly identified despite the apparently good performance of the instruments in first-stage regressions. Consequently, they argue that the cross-country variation in institutions, trade, and their geographical and historical determinants is not very informative about the partial effects of these variables on long-run growth. This paper--a product of Investment Climate, Development Research Group--is part of a larger effort in the group to study institutions and development
The investment climate and the firm : firm-level evidence from China by Mary Hallward-Driemeier( Book )

2 editions published in 2003 in English and held by 19 WorldCat member libraries worldwide

Trade policy, trade volumes, and plant-level productivity in Colombian manufacturing industries by Ana Margarida Fernandes( Book )

2 editions published in 2003 in English and held by 19 WorldCat member libraries worldwide

This paper offers new insights on a central question in trade and development economics: does increased exposure to foreign competition generate gains in plant productivity? We find that it does. We examine Colombian trade policy from 1977 to 1991, a period during which trade liberalization alternates with increased trade protection in varied ways across industries, to investigate the link between trade policy and plant productivity. Using a rich panel of manufacturing plants, we obtain production function estimates separately across industries that are consistent in face of the simultaneity between input demands and productivity. These estimates are used to derive plant-level time-varying productivity measures for which a systematic component related to trade policy is identified. We find a strong negative impact of nominal tariffs on plant productivity controlling for observed and unobserved plant characteristics and industry heterogeneity. The use of lagged tariffs and the evidence on the political economy of tariff determination in Colombia allow us to argue that the negative impact of tariffs is unlikely to reflect the endogeneity of protection. Plant exit plays a minor role in generating productivity gains in face of lower trade protection. Also, accounting for variation in the Colombian peso's real exchange rate does not weaken the main findings. The negative impact of trade protection on productivity is stronger for large plants relative to small plants, as measured by employment and market shares. The negative impact of trade protection on productivity is stronger for plants in less competitive industries according to Herfindahl indexes and turnover rates. The main findings are robust to the use of effective rates of protection and import penetration ratios as measures of trade protection and openness. Finally, we also find evidence of a negative impact of trade protection on the rate of growth of plant productivity. -- Simultaneity and Production Functions ; Trade Policy ; Productivity ; Colombian Manufacturing ; Endogeneity of Protection
When is growth pro-poor? : cross-country evidence by Aart Kraay( Book )

2 editions published in 2004 in English and held by 18 WorldCat member libraries worldwide

Growth is pro-poor if the poverty measure of interest falls. According to this definition there are three potential sources of pro-poor growth: (1) a high rate of growth of average incomes; (2) a high sensitivity of poverty to growth in average incomes; and (3) a poverty-reducing pattern of growth in relative incomes. Kraay empirically decomposes changes in poverty in a large sample of developing countries during the 1980s and 1990s into these three components. In the medium to long run, most of the variation in changes in poverty can be attributed to growth in average incomes, suggesting that policies and institutions that promote broad-based growth should be central to the pro-poor growth agenda. Most of the remainder of the variation in poverty is due to poverty-reducing patterns of growth in relative incomes, rather than differences in the sensitivity of poverty to growth in average incomes. Cross-country evidence provides relatively little guidance as to the policies and institutions that promote these other sources of pro-poor growth. This paper--a product of Investment Climate, Development Research Group--is part of a larger effort in the group to better understand pro-poor growth
Financial globalization : unequal blessings by Augusto de la Torre( Book )

4 editions published in 2002 in English and held by 17 WorldCat member libraries worldwide

De la Torre, Levy Yeyati, and Schmukler present a framework to analyze financial globalization. They argue that financial globalization needs to take into account the relation between money (particularly in its role as store of value), asset and factor price flexibility, and contractual and regulatory institutions. Countries that have the "blessed trinity" (international currency, flexible exchange rate regime, and sound contractual and regulatory environment) can integrate successfully into the world financial markets. But developing countries normally display the "unblessed trinity" (weak currency, fear of floating, and weak institutional framework). The authors define and discuss two alternative avenues (a "dollar trinity" and a "peso trinity") for developing countries to safely embrace international financial integration while the blessed trinity remains beyond reach. This paper--a product of the Office of the Chief Economist, Latin America and the Caribbean Region, and the Investment Climate Team, Development Research Group--is part of a larger effort in the Bank to assess the implications of financial globalization for emerging economies
Has the internet increased trade? : evidence from industrial and developing countries by George R. G Clarke( Book )

2 editions published in 2004 in English and held by 16 WorldCat member libraries worldwide

If the Internet made it easier for firms to enter new markets by reducing communication and search costs, then it may also have made it easier to export goods and services. Clarke and Wallsten find that higher Internet penetration in developing countries is correlated with greater exports to industrial countries, but not with trade between developing countries or with exports from industrial countries. Interpreting the correlations is difficult because causation may run from Internet use to exports or from trade openness to Internet use. To test whether Internet use affects export behavior, the authors endogenize Internet use by using countries' regulation of data services and Internet provision as instrumental variables. The results are robust to endogenizing Internet penetration, suggesting that access to the Internet does affect the export performance of firms in developing countries. In other words, Internet access appears to stimulate exports from poor countries to rich countries. Moreover, the analysis suggests that regulatory policies affecting telecommunications and Internet development indirectly affect trade, further emphasizing the importance of deregulating potentially competitive services in the telecommunications industry. This paper--a product of Investment Climate, Development Research Group--is part of a larger effort in the group to understand regulatory infrastructure sector reforms
 
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