rafmacalaba/data-use-mentions-extended huggingface dataset:
Similar findings come from Crescenzi, Di Cataldo and Giua (2021), who leverage a survey on national and subnational IPAs in Europe to evaluate the impact of IPA sectoral targeting on announcements of greenfield FDI projects, using both a difference-in-difference and synthetic control methods approach. They find that IPAs help to attract FDI even in advanced economies. They further find that sub-national IPAs are more effective than national IPAs and speculate that this is because their proximity to investors helps them to better address their investment concerns. Finally, an innovative new study by Volpe Martincus et al. (2020) expansd the focus from sectoral to firm-level targeting. The authors use firm-level data on both location decision and IPA assistance status to assess the effectiveness of IPA facilitation on attracting foreign firms in Costa Rica and Uruguay over the period 2000-2016. They find evidence that investment promotion strongly increases the probability that an MNC locates in the host country.

# **FDI Gravity Models**

A separate literature relevant for the analysis of IPA effectiveness relates to gravity models to study FDI flows. These models originate in international trade, and use the metaphor of Newton’s law of universal gravitation to predict that trade flows between countries is a function of two main variables: their size (more economic activity predicts more trade) and their distance (greater physical/cultural distance and trade frictions predict less trade). Gravity models build on solid theoretical foundations that make them particularly appropriate for counterfactual analysis, such as quantifying the effects of trade policy (Yotov et al. 2016). Their predictive power is another reason why these models have grown in popularity. Empirical gravity equations of trade flows consistently deliver a remarkable fit of between 60 and 90 percent with aggregate data as well as with sectoral data for both goods and services (Yotov et al. 2016).

New trade gravity models also hold additional insights for FDI analysis. In their seminal paper, Anderson and van Wincoop (2003) demonstrate that traditional gravity equations can overstate the effect of trade frictions on trade flows because
# **4. Conclusion**

Combating corruption requires a proper understanding of what sorts of factors make some countries more prone to corruption than the others. Yet efforts in this direction are significantly constrained by lack of reliable data on corruption. The present paper takes one step in this direction by using firm-level survey data on firms’ experience with corruption to analyze how the size of the country is associated with the level of corruption. Theory suggests both advantages and disadvantages of being large, implying the issue is essentially empirical. Our results show that overall corruption and petty corruption associated with specific public transactions are much higher in large than small countries. Thus, large countries need to strengthen monitoring and punishment of potentially corrupt politicians and bureaucrats more than the small countries.

Several issues remain to be explored. We highlight a couple of them to illustrate the point. First, data limitations do not allow us to empirically identify the mechanisms through which the size of the country affects the level of corruption. Theory suggests that large countries could suffer due to diseconomies of scale in implementing policies and monitoring public officials; another possibility is greater diversity of preferences in the relatively large countries that makes it more difficult to reach a consensus on growth enhancing reforms. Understanding which of these or other mechanisms are at play will help in designing appropriate policies to combat corruption. Second, several other factors are found in the literature to affect corruption. Examples include overall economic development or per capita income, legal origin of countries, business regulations, etc. One issue that is not discussed in theoretical or empirical studies is whether the drivers of corruption work independently of each other or substitute or complement one another. This remains an important task for future research.

26
known Harris Todaro model, predicated on the belief that the decision to move involves a gamble where winners secure high paying jobs in the unionized formal sector and losers remain unemployed, is not supported by the data: migrants secure premium jobs rarely but do find work. Williamson finally, an author of the first general equilibrium model of a rural-urban economy, provides an application of this methodology.

Rosenzweig also finds that theories that assume rural labor market failure are not borne out by the facts; although identifying distortions remains important from a policy point of view, the early teachings of development economists were wrong or overemphasized.

Both confirm that even after allowing for the influence of such characteristics as age or education, urban wages exceed rural ones by 30 to 40 percent: migration is GNP increasing. In welfare terms, the gain is smaller or possibly zero, as leaving one's village entails significant psychological transaction costs in terms of sundered friendships and family life, while it costs more to live in a city than in the country.

Migration is an investment decision, accounting for the fact that most migrants are young adults, who have time to amortize the costs of migration. More longitudinal "personal history" data could provide useful information on the connection between migration and family decisions.

# 9.3) The Supply of Human Capital and Its Use

Research on education and health has also been progressing rapidly, and after devoting two chapters to those topics in volume 1, the _Handbook_ editors judged that seven years later, there was room for a chapter on the same topics by Strauss and Thomas in volume 3. Along lines pioneered by Gary Becker, this integrates health and education into an unified examination of human behavior; the paper is also notable for its exemplary application of recent micro econometric methodology.

Both education and health (including the contribution of nutrition) enhance the productivity of workers; and just as migration entails immaterial costs that are not reflected in GNP, education and health are the source of benefits that are not expressible in money
In Section 6 we argue that the value of non-performing loans relative to GDP prior to the crisis was roughly 0.25. Taking this to be an estimate of the governments implicit liabilities to the financial sector we set 0 = 0.25. Since there is substantial uncertainty about this number we explore the sensitivity of our results to perturbations in Q. The benchmark value of P was chosen to match the increase in consolidated government liabilities that occurred in the period leading up to late October 1997 when the won first lost an unprecedented (by recent standards) fraction of its value. Using data from KIEP and the IFS, we estimate that net liabilities of the consolidated public sector rose to 5.3 percent of GDP as of the end of September 1997. Accordingly we set I = 0.053. Later we explore the sensitivity of our results to perturbations in T.

We now discuss how the benchmark value of _T_ was chosen. According to the IMF World Economic Outlook, the ratio of government revenue to GDP in Korea was roughly 22.0 percent in 1996. Since our model abstracts from investment and from the trade balance, we subtract 27.8 percent from output to ensure that the consumption to output ratio in the model matches the 1996 value in the data, roughly 0.5.

We set the real interest rate, r, to the average ex-post real interest rate in Korea for the period from January 1990 to April 1997, 7.45%. We chose the inverse of the elasticity of intertemporal substitution, cr, to be equal to 1.0. Finally, we assume that the average world rate of inflation, lr*, is 4 percent. This corresponds approximately to the average rate of inflation in the U.S. over the past 10 years. In the theoretical model we assumed that 7r* = 0. Allowing for a positive value of ir* means that the government will collect some revenue during the fixed exchange rate regime. However, this does not change any
In a related paper, Akresh et al. (2018) study the effects of school construction on the socioeconomic well-being of the first generation directly exposed to the program and the intergenerational effects on school attainment using the SUSENAS 2016 cross section data.

# **(3) Rural vs. Urban: A Model of Intergenerational Educational Mobility**

We consider an economy consisting of two-person households with the parent and a child. The parent of child _i_ has education level _Ei_<sup>_p_(yearsofschooling).FollowingSolon</sup>

> 12The main impact of the program was on the cohorts who went to school in the early 1970s.

6
.0|79.4|18.4|
|2017|4750.94|53.6|15.7|8.5|0.9|1.2|78.1|29.4|79.9|15.8|
|2018|5067.86|57.1|16.5|8.2|0.9|1.1|80.4|29.0|80.2|14.4|
|2019|5343.00|59.8|17.2|10.7|1|1.2|80.9|28.8|80.2|17.9|

Notes: PHC means primary health care. The GDP per capita data are from the World Bank Development Indicators (WDI). The data on primary health financing are from the Global Health Expenditure Database (GHED).

13
|Y|N|Y|N|N|N|N|N|Y|N|N|N|N|N|16.7|
|8|N|N|N|N|N|Y|Y|N|N|N|N|N|N|N|N|N|N|N|11.1|
|9|N|N|N|N|Y|Y|Y|N|Y|N|Y|N|Y|Y|N|N|N|N|38.9|
|10|N|Y|N|N|Y|N|N|N|N|N|N|Y|N|N|N|N|N|N|16.7|

_Source: Doing Business_ 2010

## **Index Components:**

1 Can any business use movable assets as collateral while keeping possession of the assets; and any financial institution accept such assets as collateral?

2 Does the law allow businesses to grant a non possessory security right in a single category of revolving movable assets, without requiring a specific description of the secured assets?

- 3 Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a specific description of the secured assets?

- 4 May a security right extend to future or after-acquired assets, and may it extend automatically to the products, proceeds or replacements of the original assets?

- 5 Is a general description of debts and obligations permitted in collateral agreements, so that all types of obligations and debts can be secured by stating a maximum amount rather than a specific amount between the parties?

- 6 Is a collateral registry in operation that is unified geographically and by asset type, as well as indexed by the grantor's name of a security right?

- 7 Do secured creditors have absolute priority to their collateral outside bankruptcy procedures?

- 8
# Appendix A: Sample of Countries

Due to data availability, the sample of countries differs by social indicator. The largest sample is given by the HDI indicator and includes Afghanistan, Albania, Algeria, Angola, Antigua and Barbuda, Argentina, Armenia, Australia, Austria, Azerbaijan, The Bahamas, Bahrain, Bangladesh, Barbados, Belarus, Belgium, Belize, Benin, Bhutan, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Brunei Darussalam, Bulgaria, Burkina Faso, Burundi, Cabo Verde, Cambodia, Cameroon, Canada, Central African Republic, Chad, Chile, China, Colombia, Comoros, Congo, Dem. Rep., Congo, Rep., Costa Rica, Côte d'Ivoire, Croatia, Cyprus, Czech Republic, Denmark, Djibouti, Dominica, Dominican Republic, Ecuador, Egypt, Arab Rep., El Salvador, Equatorial Guinea, Eritrea, Estonia, Ethiopia, Fiji, Finland, France, Gabon, Gambia, The, Georgia, Germany, Ghana, Greece, Grenada, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Hong Kong SAR, China, Hungary, Iceland, India, Indonesia, Iran, Islamic Rep., Iraq, Ireland, Israel, Italy, Jamaica, Japan, Jordan, Kazakhstan, Kenya, Kiribati, Korea, Rep., Kuwait, Kyrgyz Republic, Lao PDR, Latvia, Lebanon, Lesotho, Liberia, Libya, Lithuania, Luxembourg, North Macedonia, Madagascar, Malawi, Malaysia, Maldives, Mali, Malta, Mauritania, Mauritius, Mexico, Micronesia, Fed. Sts., Moldova, Mongolia, Montenegro, Morocco, Mozambique, Myanmar, Namibia, Nepal, Netherlands, New Zealand, Nicaragua, Niger, Nigeria, Norway, Oman, Pakistan, Palau, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, Rwanda, Samoa, São Tomé and Principe, Saudi Arabia, Senegal, Serbia, Seychelles, Sierra Leone, Singapore, Slovak Republic
compared to the medians of the prior distributions for take-up of the participating firms (58%), academics (63%) and policymakers (73%), and in line with the mean of our pre-specified literature prior (80%). Moreover, of the 83 firms with recorded hours, 94% (all but 4 firms) received at least 100 hours of consulting, with the median firm that took up the program receiving 195 hours. Appendix Figure B1 shows the distribution of total hours of consulting, and we see that half of all firms actually received slightly more than the 190 hours initially promised by the program.

Table 2 disaggregates the consulting received by area. Of the 83 firms with recorded activity data, 72 had hours in all three areas of consulting, 8 in two areas, and 3 in only one area. The most common two areas were the compulsory commercial strategy area,

> 9There are also substantial challenges with implementing the analysis with the richer likelihoods, which we document in Appendix G.

19
or payday lender.<sup>8</sup> This is likely a misleading indication of the use of these credit sources in lower-income urban areas generally. New York sets a severely binding interest rate ceiling on its pawnshops, so pawnshops in New York City are scarce and generally take only jewelry as collateral. In addition, New York regulations do not permit payday lending to be profitable. Although payday lenders were reasonably well-represented in Los Angeles in 1998, they have grown explosively in California and many other states since that time. Undoubtedly, a contemporary survey would find much heavier use of payday lenders than is suggested by the OCC survey.

> 8 Payday loan offices commonly make two-week loans for amounts between $100 and $500.  Typically, the borrower needs an advance to meet expenses until his or her next payday.  At the time of the advance, the borrower writes a personal check to the lender who agrees not to submit it for payment until the borrower’s next payday at which time the borrower’s account will presumably have sufficient funds to pay the check.  Frequently, borrowers choose not to repay the loan at the next payday and instead renew it.  In this way, a two-week loan can become a six- to eight-week loan.

> There were very few payday loan offices in the country prior to 1995, but by 2003 there were well over 10,000.  Many belong to large chains that operate across multiple states.  Some payday lenders also function as check-cashing outlets but others dedicate themselves only to payday lending.

20
# **3 Data**

Our sample includes data on 699 young children in 552 households from 73 rural communities in western Kenya. Data were collected during the baseline survey that preceded a pre-literacy intervention (Jakiela, Ozier, Fernald and Knauer 2020). Households living within 750 meters of the local government primary school were included in the sample if they had children between three and six years old. Here, we restrict attention to those households which also had exactly one older child between the ages of seven and 14. Our treatment of interest is an indicator for having an older child who is female. In this restricted sample of households, having an older child who is female is uncorrelated with a range of covariates, as we discuss further below.

Our data set includes information on household and parental characteristics (e.g. household assets and mother’s education) as well as multiple measures of child development and familial investments in young children. We consider two main developmental outcomes that can be measured in preschool-aged children: vocabulary and fine motor skills. Both are measured through direct child assessment.

Our vocabulary index combines includes three sub-scales: expressive vocabulary and receptive vocabulary in English (one of Kenya’s national language and the primary language of instruction at upper levels of primary school) and Luo (a Nilotic language that is the mother tongue of all of the children in our sample). Receptive vocabulary is the ability to understand words, while expressive vocabulary is the ability to produce words — for example, to identify familiar objects. Children begin developing receptive vocabulary before they begin to express themselves through speech (Fernald, Prado, Kariger and Raikes 2017). To measure receptive vocabulary in English and Luo, we adapted items from the British Picture Vocabulary Scale, a version of the Peabody Picture Vocabulary Test suitable for speakers of British or Commonwealth English (Dunn and Dunn 1997; Dunn, Dunn and Styles 2009; Knauer et al. 2019b). We assessed expressive vocabulary through a 37-item assessment developed and validated as
3) Data on daily infections and deaths from COVID-19, by country, from Our World in Data. The period covered is January 1, 2020, to October 1, 2020.

4) Data on trust in different institutions, by country, from the 9<sup>th</sup> round of the European Social Survey (2018) and the third round of the Life in Transition Survey (2016).

# **5. Results**

Table 2 summarizes the analysis of the impact of reopening sequencing on economic activity based on equation (2). The first column of Table 2 shows the FE estimations of a specification with reopening sequence dummies only. In columns (2) and (3) we control for the epidemiological situation in the country and the potentially endogenous nature of the pandemic. The coefficients in columns (1-3) on the group of dummies reflecting the sequence of coming out of the full national lockdowns indicate that gradual exit results in better economic outcomes.

Moving from full lockdown to no work or business restrictions only increases relative electricity consumption by 1.9 percent and the coefficient loses significance once we properly control for the impact of the pandemic in column 3. At the same time, a progression from full lockdown to partial lockdown results in about 5 percentage points higher relative electricity consumption, and the following relaxation from partial lockdown to no restrictions results in approximately an additional 6 percentage points. In total, a country that moved from a full lockdown to a partial one and later removed the remaining restrictions sees a cumulative increase of about 11 percentage points in economic activity relative to predicted. Given that the average gap between actual and predicted electricity consumption in the first week of reopening is about 8 percentage points, a gradual reopening process appears to entirely close that gap, while a move from full restrictions to no restrictions yields a marginal increase of less than 2 percentage points at best. This may be because a gradual reopening process may give firms and individuals more confidence to increase their levels of
Note: Central Statistics Office data for respective fiscal year; averages indicated are for Q1, 2014–Q2, 2017.

# **Figure 14: GDP growth recovered during Q2, 2017-18 to Q4, 2017-18**

14 A: GDP growth recovered <!-- Start of picture text --> GDP at Market Price<br>10<br>9 7.7<br>8<br>6.3<br>7<br>6<br>7.4 7.0<br>5<br>4 5.6<br>3<br>2<br>1<br>0<br>Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018<br><!-- End of picture text --> 14 C: Private consumption growth remains at levels seen in the past 14 B: Investment growth picked up after remaining subdued <!-- Start of picture text --> Investment<br>18<br>16 14.4<br>14<br>12<br>10<br>9.1<br>6.1<br>8<br>4.6<br>6<br>4<br>2<br>0<br>-2<br>Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018<br><!-- End of picture text --> 14 D: Government consumption growth is mostly at levels seen in the past

# **Private Consumption**

<!-- Start of picture text --> 12<br>10<br>7
Policy Research Working Paper 9025

# **Abstract**

In Addis Ababa, an increasing block tariff has been used to calculate households’ monthly bills for electricity and water services. This study estimates the magnitudes of the combined water and electricity subsidies received by households with private connections to the electricity grid and piped water network in 2016, and it evaluates the distribution of these subsidies among wealth groups. Customer billing data supplied by utility companies are matched with socioeconomic information collected through a household survey. It is the first detailed analysis of the combined effects of increasing block tariffs for electricity and water in an urban area in a developing country. The results show that the combined subsidies are large. The average household receives a subsidy of US$26 per month, about 6 percent of household income. The findings also show that electricity and water subsidies under the increasing block tariff disproportionately accrue to richer households, with even less targeting when both sectors are considered jointly. The poorest quintile receives 12 percent of the total subsidies for electricity and water services, while the richest quintile receives 31 percent. The water increasing block tariff’s targeting of subsidies was somewhat worse than that of the electricity increasing block tariff.

This paper is a product of the Development Research Group, Development Economics. It is part of a larger effort by the World Bank to provide open access to its research and make a contribution to development policy discussions around the world. Policy Research Working Papers are also posted on the Web at http://www.worldbank.org/prwp. The lead author may be contacted at helenacd@live.unc.edu. The project leader may be contacted at mtoman@worldbank.org.

_The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings
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