bluuebunny/crossref_metadata_2025 huggingface dataset:
The New Regionalism in the Americas: The Case of MERCOSUR
Authors: Saez Raul , Estevadeordal Antoni , Goto Junichi
Published: March 2024

This paper takes seriously the recent claim made by Ethier [1998] that the "New Regionalism" reflects the success of the multilateral trading system, not its failure. In fact, the New Regionalism represents a qualitative departure of the old regionalism in several respects, in particular, its development has taken place in a very different international economic environment. Moreover, the traditional Vinerian paradigm is no longer the primary analytical framework for its evaluation. We use this novel approach to analyze the case of one of the most important experiences in regional integration, the formation of the "Mercado Común del Sur" (MERCOSUR). The paper carefully documents the main stylized facts of the development of MERCOSUR arguing that this makes this type of agreement a prime example of the New Regionalism. Then, using a simple Krugman trade model with tariff distortions we show the positive welfare effects on member and non-member countries of these types of agreements. Our conclusions are consistent with Ethier's paper, that is, regionalism can play a key role in expanding and preserving the liberal trade order.
Globalization, Migration and Development: The Role of Mexican Migrant Remittances
Authors: López Córdova José Ernesto
Published: March 2024

In this paper we present evidence suggesting that international migrant remittances generally lead to improved developmental outcomes. Using a cross-section of Mexican municipalities in the year 2000, we show that increases in the fraction of households receiving international remittances are generally correlated with better schooling and health outcomes and with reductions in some dimensions of poverty. Our results take into account the likely endogeneity between migration, remittances and developmental outcome variables, and they suggest that measures to facilitate remittance flows are desirable.
The FTAA and the Political Economy of Protection in Brazil and the U.S.
Authors: De Paiva Abreu Marcelo
Published: March 2024

The interest of specific Latin American economies in the successful completion of the Free Trade Area of the Americas (FTAA) negotiations is very heterogeneous. A list of relevant factors to explain such divergences would include geographic orientation of trade, composition of exports, degree of openness of the economy, level of protection and commitment to trade liberalization. Success in the FTAA negotiations depends crucially on the convergence of views between the United States and MERCOSUR, and especially Brazil, in relation to access of goods to their respective domestic markets.
Microcredit in the Caribbean: Experiences & Best Practices
Authors: Lord Karen , Lashley Jonathan
Published: March 2024

The central objectives of this study were to establish the main experiences of microfinance institutions (MFIs), and their clients, in the Caribbean islands of Barbados and Dominica. Implicit in these objectives was an attempt to identify what procedures were working and which were not in order to offer recommendations for the restructuring of the MFI sector in the Caribbean, and the creation of new, efficient MFIs. The MFIs included in the study were: Barbados Youth Business Trust (BYBT), a private sector initiative that provides loans to both start-up and existing businesses operated by youth; Pinelands Enterprise Facilitation Services (PEFS), a division of the Pinelands Creative Workshop (PCW), that operates as a provider of both finance and support services to microentrepreneurs; and The National Development Foundation of Dominica (NDFD), one of many National Development Foundations set up in the Caribbean in the 1980s with funding from USAID to provide credit and training to small entrepreneurs.
National Systems and Institutional Mechanisms for the Comprehensive Management of Disaster Risk: Phase 1
Authors: Freeman Paul , Martin Leslie A. , Lavell Allan M. , Linnerooth-Bayer Joanne , Cardona Omar D. , Kunreuther Howard , Warner Koko
Published: March 2024

The Regional Policy Dialogue has commissioned a two-stage research program focused at understanding national, integrated, government-directed systems. This report constitutes Phase I of this project and it is based on: a review of existing literature, three case studies completed by the authors, and consultation with experts on existing practice in Latin America on natural disaster programs. The report is focused around the following three research areas: the characteristics of existing national systems and institutional mechanisms, political sustainability of national systems, and the financial sustainability of national systems. This paper was presented at the Regional Policy Dialogue's First Meeting of the Natural Disasters Dialogue held on November 15th and 16th, 2001 in Washington, DC.
A Meta-Impact Evaluation of Social Housing Programs: The Chilean Case
Authors: Ruprah Inder J. , Marcano Luis
Published: March 2024

This paper presents the findings of a meta-evaluation of Chile's Social Housing Programs since the country's return to democracy in 1990. Chile's housing policy and the specific programs embedded in it represent an interesting case study. The country's housing policy and programs are one of the most copied amongst the Chilean policies. The home-grown policy was and is considered a vanguard way of approaching housing problems. Hence, many countries in Latin America either directly or indirectly through technical advice from the multilaterals have imported the Chilean housing policy model. The aim of this paper is to provide a comprehensive evaluation in the sense of an impact evaluation that systematically compares and contrasts all of the Chilean housing programs.
An Impact Evaluation of Chile's Progressive Housing Program
Authors: Ruprah Inder J. , Marcano Luis
Published: March 2024

This paper presents the findings of an evaluation of Chile's Progressive Housing Program (PHP), which is a public housing program that finances the purchase of a new house for lower income households. The evaluation finds that the programs' package (savings requirement, voucher and mortgage) design is inappropriate if the program is targeted to the poor. In fact the pro-poor targeting of the program was poor with high under-coverage and high leakage. Furthermore, the benefit of a minimum quality new house was not sustainable as many households slipped back into the housing shortage category overtime. This impact evaluation reveals that although the program had significant positive effects on materiality conditions (access to water, sewerage, and electricity), it had a negative effect on overcrowding, and had no discernible effects on welfare indicators (poverty, school attendance, occupation ratio).
Impact of P&D Incentive Program on the Performance and Technological Efforts of Brazilian Industrial Firms
Authors: De Negri João Alberto , Lemos Mauro Borges , De Negri Fernanda
Published: March 2024

This study assesses the impact of the National Technological Development Support Program (ADTEN) on the technical performance and strength of Brazilian industrial firms and unprecedented in its content and method. It shows that this R&D incentive program reaches a relatively limited number of firms, considering the magnitude of the Brazilian industrial sector. The program reaches only 0.07% of Brazilian industrial firms with over 10 employees, and the volume of resources that firms borrowed within the program's framework was only 1.6% and 3% of their R&D expenditures in 2000 and 2003, respectively. It was evidenced that ADTEN had a positive influence on companies' private R&D expenditures from 1996 to 2003.
The Impact of University Enterprise Incentive Program on the Performance and Technological Efforts of Brazilian Industrial Firms
Authors: De Negri João Alberto , Lemos Mauro Borges , De Negri Fernanda
Published: March 2024

This study is an unprecedented effort in Brazil to evaluate the effectiveness of public incentive programs to develop technological capacity of firms. There are currently no empirical evaluations that have explored the impacts of this type of program on the performance of the Brazilian industrial firms in greater depth, particularly for those beneficiaries of these programs. This study therefore evaluates the FNDCT's impact, particularly its cooperative modality, which comprises a joint university-enterprise project for technological innovation. The results indicate that the FNDCT has positive impacts on private R&D expenditures of beneficiary firms. This rejects the hypothesis of crowding out and strengthens the hypothesis of the existence of crowding in between public and private funds. The results on the economic performance of beneficiary firms are, however, inconclusive.
Regional Disparities in Regional Blocs: Theory and Policy
Authors: Venables Anthony J.
Published: March 2024

The objectives of this paper are to explore the forces that may create disparities within a regional bloc and to assess their implications for policy. The thesis we will argue is that it is quite possible for regional integration to create disparities. Indeed, we expect it to encourage differences in the economic structures of countries, and should not be surprised if these are sometimes also associated with difference in factor prices and income levels. However, the policy response to such integration induced disparities is, loosely stated, more integration. This paper was prepared for the Inter-American Development Bank project on 'Deepening Integration of MERCOSUR: Dealing with Disparities'.
MERCOSUR: Asymmetries and Strengthening of the Customs Union: Options for the Common External Tariff
Authors: Laens Silvia , Terra María Inés
Published: March 2024

The enforcement of the MERCOSUR as an imperfect customs union is determined by the existence of a Common External Tariff (CET) which has not been fully applied up to this moment. The smallest countries in the MERCOSUR are more open, more specialized and a larger share of their total trade is intrabloc. Their integration to the MERCOSUR deeply affected their external relations and their output composition. On the contrary, for the largest countries, especially Brazil, their integration to the MERCOSUR has had much less impact on production and trade. The objective of this paper is to assess the effects on each of the MERCOSUR countries of different options for the CET. More precisely, the welfare effects and the impact on economic activities of several options are assessed for each of the MERCOSUR countries, using a computable general equilibrium (CGE) model.
MERCOSUR in Transition: Macroeconomic Perspectives
Authors: Ramos Adrián , Heymann Daniel
Published: March 2024

As the region has entered a phase of recovery leaving behind the episodes of extreme turbulence, and the decision horizons have been somewhat extended, it seems appropriate to reconsider the medium term prospects of Mercosur, including the possibility of moving towards a process of deepening integration. This paper tries to contribute to this search activity with a brief analysis of regional macroeconomic interactions, and a discussion in broad terms of incentives and restrictions for macroeconomic cooperation in the specific conditions of the region.
Environmental Management: Towards a Conceptual Framework for Environmental Governance
Authors: Kessler Jan Joost , van Ginniken Pieter , Cornelissen Willem , Romijn Bart
Published: March 2024

This study is a first attempt to develop a new orientation on environmental management in the Latin America and Caribbean. The development towards a more strategic environmental management entails an evolution from a centralized management structure into a more decentralized system in which management is reasonably integrated, both vertically and horizontally. The study provides a framework of different criteria, key issues and requirements that are fundamental for an environmental management process and that can be used to develop country-specific action plans for improvement.
Trade and Environmental Issues in Forest Production
Authors: Simula Markku
Published: March 2024

This paper is an attempt to clarify some of the key issues on trade and environment in the forestry sector. The two main emerging issues in the international trade of forest products within Latin America and the Caribbean to be studied are: 1) implications of the removal of trade barriers for the economic contribution and sustainability of production of the forest sector; and 2) prospects for "green" markets and eco-labelling of forest products based on improved management and harvesting practices. Included in this working paper are a discussion of trends of trade of forest-based products and environmental impacts; environmental impacts of trade barriers and policies related to forest products; multilateral agreements influencing forest management; certification of forest management and eco-labelling of forest products. Lastly, the paper ends with policy recommendations and directions for the future.
An Impact Evaluation of a Neighbourhood Crime Prevention Program: Does Safer Commune Make Chileans Safer?
Authors: Ruprah Inder J.
Published: March 2024

This working paper discusses "Safer Commune" - a neighbourhood crime prevention program in Chile that has come under criticism via evidence of rising crime rates and fear of crime in municipalities with the program. The author argues that this criticism is incorrect and shows empirical evidence that the crime rates that would have been observed without the program. This impact evaluation -using the double difference propensity score method- reveals that the program has reduced high crimes particularly of two types of crimes namely battery and theft. The author shows that active participation in the program by local residents has reduced insecurity and increased security; but with very low active participation in the program the scale of the effect is low. Positive evaluative findings suggest that an expansion of the program and simultaneously enhancing co-production of order through mechanisms to encourage local resident participation would have high returns.
Output Diversification among Small-Scale Hillside Farmers in El Salvador
Authors: Bravo-Ureta Boris E. , Solís Daniel , Cocchi Horacio
Published: March 2024

In this study the authors analyze the degree of output diversification (anything produced in the farm that is not a subsistence crop, i.e., corn or beans) among 520 hillside farmers in El Salvador. Techniques were employed to construct a comparison group that resembles the treatment group based on observed characteristics while statistical controls were applied to measure differences on diversification for the treatment group at two points in time (2002 and 2005) and between the treatment and comparison groups at a given point in time (2005), allowing for before-after and with-without comparisons. The outcome of the study showed that overall, more diversified farm plans are positively associated with farm size, schooling, participation in communal organizations, and with the frequency of extension visits, which captures the PAES intervention. Also, farmers involved with PAES have significantly increased the number of agricultural activities in their farms between 2002 and 2005.
The Impact of Training Policies in Argentina: An Evaluation of Proyecto Joven
Authors: Alzuá Maria Laura , Brassiolo Pablo
Published: March 2024

This paper evaluates Proyecto Joven, a training program targeted to poor young individuals in Argentina. The authors used a non-experimental evaluation methodology to answer the following set of questions: 1) Did the program increase the probability of employment?; 2) Did it increase the probability of a formal employment?; 3) Did it increase the labor income of trainees? The methodology used is the matching estimators approach calculating first propensity scores for program participation and then the matching estimators to calculate the program impact. The impact of the program is negligible in terms of employment and income, but not in terms of formality, which was an important achievement in the case of Argentina, since labor informality was increasing economy wide and more specifically for the group targeted by Proyecto Joven.
Cluster Economics: Elements for Program Evaluation
Authors: Quiroz Jorge
Published: March 2024

This paper discusses the main ideas of the cluster literature and the more established modern economic thought. Based on the economic analysis, it proposes an evaluation methodology with a strong emphasis on the economic impact of the programs. The paper provides an additional set of indicators that are intended to uncover the performance indicators' angle of the problem, borrowing heavily from research done elsewhere. The paper provides concrete guidelines to field-researchers and evaluators and concludes by summarizing the main features shared by seven IDB cluster programs.
The Impact of Receiving Price and Climate Information in the Agricultural Sector
Authors: Conover Emily , Camacho Adriana
Published: March 2024

Previous studies indicate that Colombian farmers make production decisions based on informal sources of information, such as family and neighbors or tradition. In this paper the authors randomize recipients of price and weather information using text messages (SMS technology). The authors find that relative to those farmers who did not receive SMS information, the farmers who did were more likely to provide market price information, had a narrower dispersion in the expected price of their crops, and had a significant reduction in crop loss. Farmers also report that text messages provide useful information, especially in regards to sale prices. The results do not find, however, a significant difference between the treated and untreated farmers in the actual sale price, nor changes in farmers' revenues or household expenditures.
The Impact of Access to Credit on the Saving Behavior of Microentrepreneurs: Evidence from 3 Latin American Countries
Authors: Rogg Christian S.
Published: March 2024

This paper aims to shed light on changes in the saving behavior of microentrepreneurs in response to improved access to credit. This paper argues that it is necessary to extend the analysis to the shifting of assets between different forms of savings. The econometric analysis in this paper, which is based on data from IDB evaluations of its Micro and Small Enterprise Global Programs in Ecuador, El Salvador and Paraguay, concludes that increased access to credit induces borrowers to shift their savings from livestock, jewelry and other assets with low or negative returns into deposit accounts with positive returns. This shift takes place as microentrepreneurs develop an understanding of, and confidence in, the various operations and services of the financial sector. As a result of this shift, borrowers tend to achieve a better return on their savings.
Global Financial Safety Nets: Where Do We Go from Here?
Authors: Levy Yeyati Eduardo , Fernández-Arias Eduardo
Published: March 2024

An analysis of the performance of the global financial safety net during the 2008-2009 crisis, and an evaluation of its new components, indicates that, from an emerging markets perspective, the net remains full of holes despite recent stitches. This paper therefore proposes an effective and workable international lender of last resort (ILLR) for systemic liquidity crises based on: i) an automatic trigger to access the facility; ii) unilateral country pre-qualification to the facility during Article IV consultations; and iii) liquidity funded by the world's "issuers of last resort". These principles would support a reliable and broad-based ILLR without the carrying costs associated with inefficient reserve hoarding, which would actually work as an effective preventive facility with minimal room for moral hazard.
Entering New Country and Product Markets: Does Export Promotion Help?
Authors: Volpe Martincus Christian , Carballo Jerónimo
Published: March 2024

Entering new export markets is primarily a discrete choice. Even though several empirical papers have used modeling strategies consistent with this fact, no study has examined the effects of public policies aimed at affecting this decision within this setting. In this paper we assess the impact of trade promotion activities on export outcomes using trade support and highly disaggregated export data for the whole population of exporters of a small developing country, Uruguay, over the period 2000-2007 to estimate a binary outcome model which allows for unobserved heterogeneity. We find that trade supporting activities have helped firms reach new destination countries and introduce new differentiated products.
Sustainability of Reform in Central America: Market Convergence and Regional Integration
Authors: Tomiak Richard , Millán Jaime
Published: March 2024

The objective of this paper is to assesses the Central American power sector reforms and suggest an integrated framework for promoting sustainability of electricity sector reform in the six countries of the Central American isthmus. Whilst the paper draws on experiences gained in other parts of the world, it explicitly takes into account the particular characteristics of the region. It concurs with the view that competition in the six Central American states is limited by their technical and institutional constraints but suggests that these can be overcome over time by establishing appropriate regulatory regimes and pursuing a policy of regional market convergence that ultimately results in full regional integration.
Private Infrastructure Investment at the Subnational Level: Challenges in Emerging Economies
Authors: Beato Paulina , Vives Antonio
Published: March 2024

This working paper discusses infrastructure investment in Latin America at the subnational, private level and challenges incurred in emerging economics. As decentralization and devolution of responsibilities to subnational governments is increasing, the volume of private infrastructure under the jurisdiction of subnational governments is increasing in tandem with increases in decentralization and devolution of responsibilities to those governments.
Natural Disaster Management and the Road Network in Ecuador: Policy Issues and Recommendations
Authors: Solberg Scott , Hale David , Benavides Juan
Published: March 2024

This study identifies the major structural problems and constraints that impair the performance of disaster management in the road network of Ecuador. The paper identifies two categories of problems: reconstruction and relief efforts are favored in a reactive manner and also the lack of planning and poor procurement practices increases the reconstruction and disruption costs of extreme natural events. The recommendations of this exploratory study include changes in governance of the national disaster management system in issues related to transportation and the strengthening of the Ministry of Public Works (MOP's) role and skills as sector leader in all the country. For the transportation sector itself, the proposals include strengthening planning of mitigation and prevention, creation of permanent disaster management units within MOP and provincial governments, prioritization of maintenance and rehabilitation efforts in the entire national road and the use of incentive contracts and incorporation of the communities to the recovery of tertiary and rural roads.
Water Pricing and Public-Private Partnership in the Americas
Authors: Garrido Raymundo José , Lara Ruiz Víctor , Baltar Alexandre M. , Dettlaff Martin , Braga Benedito , Jacobs Jeffrey W. , Embid Irujo Antonio , Lobina Emanuele , Strauss Clarice , García Luis E. , Oliveira João Lúcio Farias de , Lanna Antonio Eduardo , McKay Jennifer , Orphanópoulos Damaris , Paiva Fatima , Del Castillo de Laborde Lilian , Hall David , Sandoval Minero Ricardo , Howe Charles W. , De Azevedo Luiz Gabriel T. , Lemos Maria Carmen
Published: March 2024

Because of the complexities associated with the water pricing and public-private partnership issue and their relevance to water management of the future, the Third World Water Centre for Water Management, the Inter-American Development Bank and the Agencia Nacional de Aguas of Brazil sponsored two focused workshops on water pricing in Brasilia, held on June 3rd-5th, 2002 and on public-private partnership in the water sector in Mexico City, held on September 25th-27th, 2003. The main objective of both the workshops were to assess the experiences from North and South America on the issues concerned in an objective and critical manner. Papers for each of the two workshops were specially commissioned. Following the discussions at the two workshops, the authors revised their papers, and this publication includes the selected and revised papers.
Search Methods and Outcomes in Developing Countries: The Case of Venezuela
Authors: Ruiz-Tagle V. Cristóbal , Márquez Gustavo
Published: March 2024

In this study, the authors use a newly developed panel data set for Venezuela in the period between 1994 and 2002 to analyze three basic questions. The first relates to the influence of personal characteristics and previous labor market experience in the choice of different search methods. The second question addresses the effectiveness of different search methods in moving out of unemployment, controlling for personal characteristics and previous job characteristics. Finally, the third question points to the issue of former labor status by analyzing the relative weight of search method and previous job status in the determination of the likelihood of landing a job or dropping out of the labor force. The authors conclude that previous job status is a primary determinant of success in moving to employment, and that the use of employment agencies increases the likelihood of that move within each labor status.
The Effects of Labor Market Regulations on Employment Decisions by Firms: Empirical Evidence for Argentina
Authors: Montoya Silvia , Mondino Guillermo
Published: March 2024

There are few Latin American countries that produced such a remarkable turnaround in policies and outcomes as Argentina did in the 1990s. The large number of reforms yielded surprisingly strong growth and the near-disappearance of inflation. Perhaps the most striking change took place in the labor market, where job creation and destruction reigned in earnest. There, where reforms were moderate, high open unemployment was the result. This paper looks at the potential effect regulations might have on labor demand dynamics. In particular, we try to ascertain how movements in labor costs influence firms' decisions regarding job creation. The paper first presents descriptive evidence on who benefits from regulations and how much they cost. The evidence is based on PHS Microdata and identifies the effects on individuals' labor market outcomes stemming from varying regulations. The paper then turns to labor demand estimation.
Gender Differentials in Judicial Proceedings: Field Evidence from Housing-Related Cases in Uruguay
Authors: Rothschild Julie , Gandelman Eduardo , Gandelman Néstor
Published: March 2024

Using micro data on judicial proceedings in Uruguay, this paper presents evidence that female defendants receive more favorable treatment in courts than male defendants. This is due to longer foreclosure proceedings and higher probabilities of being granted extensions in evictions and dispossessions for female defendants.
Quality of Life in Montevideo
Authors: Ferre Zuleika , Gandelman Néstor , Piani Giorgina
Published: March 2024

This paper analyzes various dimensions of the quality of life in Montevideo. The paper finds that satisfaction with various public goods and services at the neighborhood level play a minor role in the overall reported well-being of individuals and in the satisfaction of life domains, such as leisure, social life, family, health, housing, neighborhood economic situation and work. This is in spite of significant disparities in a wide range of indicators among those living in different areas of the city. The results further suggest that differences in overall happiness and in domain satisfaction are mostly due to differences in individual outcomes like education, health, labor situation and housing quality.
Ability, Schooling Choices and Gender Labor Market Discrimination: Evidence for Chile
Authors: Bravo David , Urzúa Sergio , Sanhueza Claudia
Published: March 2024

This paper analyzes gender differences in the Chilean labor market, formally addressing the selection of individuals into schooling levels and its impact on gender gaps. The paper utilizes a new and rich data set containing information on labor market outcomes, schooling attainment and schooling performance, as well as variables characterizing individuals' family background. Although the results show statistically significant gender differences in several dimensions of the Chilean labor market, these gaps depend largely on individuals' level of schooling. Nonetheless, these findings should not be taken as decisive evidence of discrimination in the Chilean labor market, as future research based on better information might explain some of the unexplained labor market gaps.
Argentina's Distributional Failure: The Role of Integration and Public Policy
Authors: Gasparini Leonardo
Published: March 2024

This paper documents the income distribution changes experienced by Argentina during the last decades. Inequality substantially increased, and despite economic growth during some periods, poverty also went significantly up. Two types of episodes have shaped Argentina's income distribution: deep macroeconomic crisis and periods of openness and integration. The sizable raise in inequality in the 90s seems to be associated to reallocations against unskilled-labor intensive sectors, and especially to skilled-biased technological change within most sectors, both factors stimulated by the process of economic integration. The depth and speed of the reforms and the absence of public policies to ease the transition contributed to the particular severity of the income distribution changes in Argentina. This paper was prepared for the Labor Markets and Globalization Conference, Inter-American Development Bank, Brasilia, October 20, 2003.
Stay Public or Go Private?: A Comparative Analysis of Water Services between Quito and Guayaquil
Authors: Coombs Elizabeth , Bellettini Cedeño Orazio J. , Carrillo Paul E.
Published: March 2024

This paper computes several indicators of water coverage, quality, and prices in Ecuador's two largest cities: Quito and Guayaquil- both before and after the privatization of water services in Guayaquil. The type of data sources that are used make it possible to specifically control for income and, thus, to evaluate changes in water provision, particularly among the poor. These indicators provide useful information about how certain water-related services have changed over time and facilitate evaluating the performance of each company. It should be emphasized, however, that such estimates cannot be used to identify the causal effects of the privatization of water provision. In particular, differences in a) before-concession water-coverage trends, c) rural-to-urban migration patterns, and c) other idiosyncratic institutional characteristics between these two cities, suggest that Quito may not be a suitable control group for identifying the casual effects of privatization.
Institutional Quality and Government Efficiency
Authors: Chong Alberto E. , Gradstein Mark
Published: March 2024

Poorer countries have a much smaller public sector and correspondingly a smaller tax burden than richer countries, yet, their economic performance has not been necessarily better. Using a simple model, this paper suggests that the growth and welfare effects of taxation are mediated through institutional quality; consequently, optimal tax levels increase with improved institutional quality. The paper then employs firm-level perceptions on the quality of public services and on the tax burden to test some of the model¿s predictions. Consistent with these predictions, the paper finds that a higher level of institutional quality bolsters positive perceptions of the quality of public services while at the same time moderating the view of taxes as an obstacle to growth.
Regional Integration behind the Border: Applying a Value Chain Approach
Authors: Aldonas Grant
Published: March 2024

This paper outlines a methodology for assessing the cost of internal and external obstacles affecting the performance of the value chains serving local producers in developing countries as a means of identifying high impact interventions that would contribute to the country's successful integration into regional and global markets. The objective is to create a single measure of the effect of such barriers in order to illustrate the value of examining internal reforms (i.e., those steps essential to regional integration "behind the border") as well as export barriers in developing a regional integration strategy that makes sense in the context of the accelerating integration of global markets. The methodology employed uses tools applied by global firms in assessing their own operations and in making critical sourcing decisions. This paper was presented at Latin America/Caribbean and Asia/Pacific Economics and Business Association (LAEBA)'s 5th Annual Meeting held in Singapore on July 15th, 2009.
The Internationalisation of SMEs in Regional and Global Value Chains
Authors: Lim Hank , Kimura Fukunari
Published: March 2024

This paper discusses the significant potential for the SME sector to increase its contribution to East Asia's regional development through greater participation in global value chains while risks from multiple market failures can be mitigated by proper policy measures. The authors also discuss technology transfers, the International Entrepreneurship Theory and the impact of free trade agreements on the region.
Financial Liberalization, Crisis, and Rescue: Lessons for China from Latin America and East Asia?
Authors: Stallings Barbara
Published: March 2024

This paper examines the liberalization process in the context of reflecting on the challenges facing China's financial system and possible lessons that can be learned from the experiences of other emerging market economies. Section 1 begins with a brief look at the characteristics of the Chinese financial sector at the beginning of the twenty-first century. It then turns to selected country experiences from two emerging regions: Latin America and East Asia (excluding China). Section 2 presents the framework and hypotheses for studying liberalization. Section 3 examines statistics on financial liberalization. Section 4 turns to the relationship between financial liberalization and crisis. Section 5 analyzes short-term rescue mechanisms, their fiscal and other costs, and their degree of success. Section 6 concludes with some lessons that China might draw from its Asian neighbors and Latin America. This paper was presented at the Latin America/Caribbean and Asia/Pacific Economics and Business Association (LAEBA)'s First Annual Conference, held in Beijing, People's Republic of China on December 3rd-4th, 2004.
Transportation Costs of Fresh Flowers: A Comparison across Major Exporting Countries
Authors: Vega Henry
Published: March 2024

Exporting fresh flowers is one of very few successful efforts by producers in low-income countries to compete in international markets of high-value agricultural goods. While this success results from producers' ability to take advantage of their geographic location and access to low labor costs, it may not be sustainable in the long run due to unreliable supply chains and high transportation costs. Using a case study approach of Ecuador's supply chain, complemented by an empirical analysis of microdata on exports from major fresh flower exporting countries to the United States, this study confirms producers' claims that time and transportation costs vary widely across countries. This paper was presented at the Latin America/Caribbean and Asia/Pacific Economics and Business Association (LAEBA)'s 4th Annual Meeting held at Lima, Peru on June 17th, 2008.
Fear of China: Is There a Future for Manufacturing in Latin America?
Authors: Mesquita Moreira Mauricio
Published: March 2024

China's emergence has raised pointed questions about the future of manufacturing in Latin America. Once saw as its economic future, the viability of this activity in the region has long been challenged by traditional trade theory and, in practical terms, by at least three generations of Asian Tigers. China and its "unlimited supply of labor", rapid productivity growth, scale, and extremely interventionist state has brought the practical challenge to unprecedented levels. This paper, using mainly descriptive production and trade statistics, looks at the nature of this challenge and its implications. It begins by dealing with a central issue: Does manufacturing still matter for Latin America's development? It then moves on to examine the scope and nature of the Chinese challenge. It shows that endowments, productivity, scale and the government role, all work together to make China a formidable competitor. The paper concludes by discussing, in general terms, the (difficult) policy options available. This presentation presented at Latin America/Caribbean and Asia/Pacific Economics and Business Association (LAEBA)'s 1st Annual Meeting held in Beijing, China on December 3rd-4th, 2004.
Cleaning Up the Kitchen Sink: On the Consequences of the Linearity Assumption for Cross-Country Growth Empirics
Authors: Rodríguez Francisco
Published: March 2024

Existing work in growth empirics either assumes linearity of the growth function or attempts to capture non-linearities by the addition of a small number of quadratic or multiplicative interaction terms. Under a more generalized failure of linearity or if the functional form taken by the non-linearity is not known ex ante, such an approach is inadequate and will lead to biased and inconsistent OLS and instrumental variables estimators. This paper uses non-parametric and semiparametric methods of estimation to evaluate the relevance of strong non-linearities in commonly used growth data sets. Our tests decisively reject the linearity hypothesis. A preponderance of our tests also rejects the hypothesis that growth is a separable function of its regressors. Absent separability, the approximation error of estimators of the growth function grows in proportion to the number of relevant dimensions, substantially increasing the data requirements necessary to make inferences about the growth effects of regressors. We show that appropriate non-parametric tests are commonly inconclusive as to the effects of policies, institutions and economic structure on growth.
The Emergence of Successful Export Activities in Uruguay: Four Case Studies
Authors: Pastori Héctor , Domingo Rosario , Pittaluga Lucía , Casacuberta Carlos
Published: March 2024

This paper consists of four case studies of the emergence of four successful export activities in Uruguay: computer software, forest products, caviar and sturgeon meat, and animal vaccines. Each case study discusses how companies, associations, and governments at various levels have addressed market failures and facilitated the provision of public goods necessary for each activity. The case studies additionally profile first movers in each activity and describe the positive externalities they provide to imitators, particularly diffusion of export knowledge. Also included in each case study is a counterfactual case of a less successful activity (electronics, wine, frog meat, and biotechnology, respectively) and a section on policy implications.
Innovation, R&D Investment and Productivity in Chile
Authors: Navarro Lucas , Alvarez Roberto , Bravo Ortega Claudio
Published: March 2024

This paper uses two sources of information and different methodologies to analyze the causal effect of product and process innovation on productivity in the Chilean manufacturing industry during the past decade. In general, the evidence suggests there is not a contemporaneous effect of product innovation on productivity, but there is a positive effect of process innovation. This not significant effect of product innovation contrasts with evidence of studies for other countries. However, the results show the presence of lagged effects product innovation on productivity two years after innovation. Compared with the case of developed countries, this evidence might be consistent with a very slow process of -learning by doing- on the part of Chilean firms with regard to mastering new technologies. These slow and frequently uncertain gains in productivity could help to explain the low levels of investment in research and development (R and D) activities by Chilean firms.
Dealing with Coordination Issues in Rural Development Projects: Game Theory Insights
Authors: Wenner Mark D.
Published: March 2024

The purpose of this paper is to review the literature on coordination failures, apply game theory to coordination issues within selected rural development projects in order to develop a set of guidelines to avoid and minimize coordination failures. The ultimate aim is to promote development effectiveness by helping to improve project design. The intended audience is operational staff of the bank, staff in other donor agencies, policy makers, and academics interested in development effectiveness, enterprise development, and rural development. Case studies concern themselves with the rural agricultural and non-agricultural development in Latin America, but the theoretical insights can be applied to any sector or region of the world.
Effect of the Structure of Rural Public Expenditures on Agricultural Growth and Rural Poverty in Latin America
Authors: López Ramón
Published: March 2024

This working paper empirically documents the size of (2) in the rural sector and investigates its consequences for rural development (agricultural growth, patterns of growth and rural poverty) for ten Latin American countries over 1985-2000. The paper provides econometric evidence suggesting that the structure of public expenditures is an important factor of economic development. The quantitative importance of this factor appears to be greater than the traditional factors on which the development literature focuses. In particular, expanding total public expenditures in rural areas while maintaining the existing public expenditure composition prevailing in the countries does little to promote agricultural income and reduce rural poverty.
Breaking from Isolation: Suriname's Participation in Regional Integration Initiatives
Authors: Katona Andrew , Jessen Anneke
Published: March 2024

This paper discusses Suriname's efforts in regional integration initiatives, starting in the 1990s. In the first section, the authors identify some concrete initiatives undertaken by Suriname to broaden and diversify its economic links, and highlight the many barriers that remain to be overcome in that area. Next, they examine, from a theoretical point of view, the costs and benefits of regional integration, which have been one of the key components of Suriname's increasingly outward-oriented development agenda. Subsequent sections provide a more detailed analysis of Suriname's recent integration efforts, and how these may influence its future development prospects. It is the authors' contention that by adopting the tenets of "open regionalism", Suriname has embarked on an effective process of global market integration, which will both shield it from --and gradually prepare it for-- the harsh adjustments of full-blown international competition.
The Impact of Colombia's Pension and Health Insurance Systems on Informality
Authors: Calderón Valentina , Marinescu Ioana
Published: March 2024

This paper examines how changes in the legislation governing health and pension benefits that took place between 2003 and 2008 in Colombia affected the informal and formal labor markets. In particular, this paper examines two major changes in the legislation. First, it looks at the effects of imposing the requirement to use the same base income to contribute to both health insurance and pensions for independent workers using a difference-in-differences strategy. Second, this document addresses the effects of unifying health and pension system payments, which required employers to make contributions to these two plans through a unified payment system, making it more difficult to contribute differently to the one plan versus the other. The results presented in this paper suggest that this reform increased both full formality and full informality, but with larger positive effects on full formality.
Sub-national Revenue Mobilization in Peru
Authors: Canavire-Bacarreza Gustavo , Martínez-Vázquez Jorge , Sepúlveda Cristián
Published: March 2024

This paper analyzes the problem of sub-national revenue mobilization in Peru and proposes several policy reforms to improve collection performance while maintaining a sound revenue structure. In particular, the paper analyzes the current revenues of regional and municipal governments and identifies the main priorities for reform. Among the most important problems are the acute inequalities and inefficiencies associated with revenue sharing from extractive industries. These revenues represent a significant share of sub-national budgets and currently they are distributed without consideration of the relative expenditure needs or fiscal capacity of sub-national units. In order to address this problem, the paper proposes the incorporation of a measure of fiscal capacity into the formula of the FONCOMUN, the municipal equalization transfer program. Other reforms explored include the reassignment of revenue sources between municipal provincial and district governments and the assignment of new taxes to regional governments.
Does Inequality Breed Altruism or Selfishness? Gauging Individuals' Predispositions towards Redistributive Schemes
Authors: Velasques de Paula Machado Fabiana
Published: March 2024

While decreasing inequality is generally considered desirable, and there is a growing understanding of which policies do and do not promote equality, much less is known regarding why these policies are adopted to varying degrees of intensity in different times and places. To explain this variation, the constituencies for different policies under various conditions must be identified. This paper explores that question using Brazilian public opinion data on preferences regarding taxation, conditional cash transfers, pension schemes and educations. It is found that disagreement across socio-economic groups arises on how government should address inequality rather than whether it should do so. While poorer respondents support cash transfers more than the rich, the rich are more likely than the poor to support expenditures on public education. Contrary to what is commonly assumed, inequality seems to breed altruism among the rich regarding the quintessential poverty reduction scheme of conditional cash transfers.
Ecuador: Fiscal Stabilization Funds and Prospects
Authors: Cueva Armijos Simón
Published: March 2024

Amongst a favorable economic environment, Ecuador's exceptional oil revenues have bolstered fiscal accounts. Several legal changes have created or modified funds or accounts aimed at saving, earmarking, or using oil-related revenues. This paper discusses oil-related fiscal policies, stabilization funds, and options in Ecuador. It reviews existing schemes, describes fiscal trends and underlying vulnerabilities, and offers trends and prospects for the oil-related funds and fiscal accounts. Assessing the weaknesses of the fiscal stabilization framework, it offers suggestions for improving efficiency in the use of exceptional fiscal revenues. It calls for enforceable fiscal responsibility rules, an enhanced accountability for oil revenues and the budget process, market mechanisms to hedge against oil price volatility, and a strengthened planning and prioritization of public investment.