rafmacalaba/data-use-mentions-extended huggingface dataset:
destinations.<sup>4</sup> Campa (2004) found that export growth associated with hysteresis driven by the extensive margin of trade was small in a sample of Spanish manufacturing firms, which is consistent with Freund and Pierola’s finding that persistent devaluations are not associated with export surges in developed economies. New research examining French firms in light of exchange-rate changes suggests that responses can vary across firms, with high-productivity firms or firms that sell high-quality goods tending to raise markups during depreciations while low productivity firms tend to raise their export volumes (Berman, Martin and Meyer 2009). Hence it seems that overall it is difficult to expect huge impacts of exchange rate devaluations on exports, at least for certain types of countries, because the pass through can be attenuated by strategic pricing behavior while the extensive margin effect tends to be small.

# _B. Currency Under-valuation, Exports and Growth_

As mentioned, Freund and Pierola (2008) found that exchange rate devaluations that resulted in significant under-valuation of developing-country currencies were associated with export surges in developing countries, based on an examination of 92 episodes of export surges (instead of episodes of REER adjustments). To some extent, these results might be driven by the research design: the authors first identified the episodes of manufactured exports surges and then explored correlates of the magnitude of the export growth rate, but they did not ask whether the probability of observing an export surge is partially correlated with real exchange rate fluctuations. In contrast, Hausmann, Pritchett and Rodrik (2005) did find that the probability of observing a sustained and large GDP growth episode was associated with real devaluations. Nonetheless, the fact that episodes of sustained devaluations were systematically correlated with both the size of the export surge and the number of new exported products in Freund and Pierola (2008) is an interesting result. As will become apparent, the ongoing shares some methodological aspects with the event-study approach, but our focus is on episodes of large real exchange-rate devaluations and the performance of FDI and total merchandise
individual migration data at the household level provides enough of a gain in statistical power and sufficient outcome variation needed for estimation. In our case, we observe just above 3% of migrant _individuals_ across the panel (2010-2019) but almost 27% of migrant-sending _households_ over the same period.

We then integrate household data with gridded geospatial weather information collected from third-party, publicly-available sources using spatially anonymized household GPS coordinates.<sup>9</sup>

> 9 Spatial anonymization is standard practice in georeferenced household survey data that are publicly available, to protect the privacy of the respondents. Michler et al. (2022) have recently shown that spatial anonymization methods currently implemented in longitudinal surveys supported by the LSMS do not exert any meaningful impact on estimates of the relationship between weather and agricultural outcomes. In particular, the authors conclude that researchers need not be concerned about potential inaccuracies that may be introduced by integrating spatially-

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Policy Research Working Paper 5710

# **Abstract**

Can communal heterogeneity explain persistent educational inequities in developing countries? The paper uses a novel data-set from rural Pakistan that explicitly recognizes the geographic structure of villages and the social makeup of constituent hamlets to show that demand for schooling is sensitive to the allocation of schools across ethnically fragmented communities. The analysis focuses on two types of social barriers: stigma based on caste affiliation and female seclusion that is more rigidly enforced outside a girl’s own hamlet. Results indicate a substantial decrease in primary school enrollment rates for girls who have to cross hamlet boundaries to attend, irrespective of school distance, an effect not present for boys. However, low-caste children, both boys and girls, are deterred from enrolling when the most convenient school is in a hamlet dominated by high-caste households. In particular, low-caste girls, the most educationally disadvantaged group, benefit from improved school access only when the school is also casteconcordant. A policy experiment indicates that providing schools in low-caste dominant hamlets would increase overall enrollment by almost twice as much as a policy of placing a school in every unserved hamlet, and would do so at one-sixth of the cost.

This paper is a product of the Agriculture and Rural Development Team, Development Research Group; and the Poverty Reduction and Equity, Poverty Reduction and Economic Management Network. 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://econ.worldbank.org. The authors may be contacted at hjacoby@worldbank.org and gmansuri@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
Policy Research Working Paper 5547

# **Abstract**

Besides superior productivity, what other firm characteristics are associated with export success? This empirical study identifies the effects of signaling tools (foreign technical license, International Standards Organization certification, and review of financial statements) and Internet tools (email and website) on export frequency and intensity of firms in developing countries. Using data from the World Bank’s Enterprise Survey, the author finds that productivity, size, foreign ownership, International Standards Organization certification, and the use of Internet tools have positive effects on the probability of exporting and on the intensive margin of trade. International Standards Organization certified firms are 22 percent more likely to be exporters, whereas firms that use their own website to communicate with clients and suppliers increase the likelihood they export by 11 percent. Among exporting firms, those that are International Standards Organization certified sell 41 percent more abroad than firms that are not certified. Firms that use email sell 31 percent more in foreign markets than exporting firms that do not.

This paper is a product of the Trade and Integration Team, Development Research Group. It is related to the Trade Costs and Facilitation Project with support of the Multi-Donor Trust Fund on Trade. 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://econ.worldbank.org. The author may be contacted at eferro@brandeis.edu.

_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, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for
occur through multiple channels: through an income effect, a spousal absence effect, and through changes in fertility norms and contraceptive knowledge (Hildebrandt and McKenzie, 2005). This can change the number and timing of childbirths. Moreover, to the extent that migration changes who individuals form relationships with, it not only changes whether they have children, but who these children are–for example, rather than having a child with someone from their home community, they instead have a different child with someone from the destination community.

Changes in marriage will also change the formation of the extended family, in terms of the composition of in-laws. Moreover, migration of one individual can also change the partition of the non-migrant family members into distinct households. Drawing on data from a rotating 15
inquiry is undertaken by Darku (2001) based on firm-level data from a survey in Uganda in 1998. Constructing the measure of uncertainty in the same way as Pattillo (1998), Darku finds a negative relationship between uncertainty and investment, and documents that this effect is stronger among firms with more irreversible investment. These studies provide direct evidence that the effect of uncertainty on investment is negative.

High uncertainty results in a high risk premium in the required return on invested capital, suggesting that African manufacturing firms have high opportunity costs of capital. Bigsten et al. (1999a) argue that this is indeed the case. Using RPED data from Cameroon, Ghana, Kenya and Zimbabwe from the early and mid 1990s, Bigsten et al. report figures on average returns on capital that are much higher than among firms in more developed countries. This is clear from Table 3, which shows some of the figures reported in Bigsten et al, along with data from Uganda, taken from Reinikka and Svensson (2001). While there is a striking similarity in the average investment rates across all countries considered, the rates of returns on capital are much higher in Africa than in the European countries. The authors infer from this that the cost of capital is relatively high in Africa, and maintain that this is consistent with a negative effect of uncertainty on investment. A similar view is taken by Fafchamps and Oostendorp (1999), arguing that uncertainty is a plausible explanation as to why investment has remained low in Zimbabwe despite of the structural changes introduced by ESAP.

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this phenomenon to occur: if individuals use the concept of permanent income both to interpret the steps of Cantril’s ladder and to answer the question about their position in it, then the distribution of answers should be uniform as the difference in variance is irrelevant.

While the first condition has found some empirical support (Hall and Mishkin, 1982), the second condition requires that individuals use two different definitions of income, one to interpret the question and another to answer it. It is beyond the scope of this paper to test for this kind of behavioral patterns but, to the best of our knowledge, this specific type of “cognitive dissonance” has not been reported in literature. We therefore conclude that, even if individuals were responding based on their permanent income rather than on their current income, the “bunching in the middle” should not be a feature of the data.

**Misperceptions: reference group versus overall population** Individuals may estimate their position in the income distribution by extrapolating to the whole population their position in the income distribution of a reference group. Cruces et al. (2013) show that, under certain distributional assumptions, this behavior could give rise to a “bunching in the middle”. In particular, in the presence of first-order stochastic dominance of high income reference groups’ income distributions over that of the whole population (and a symmetric dominance of low income reference groups’ income distributions), individuals in high income reference groups will underestimate their true position and individuals in low income reference groups will overestimate their true position. Reference groups can be of different kinds, but the literature has established that geographical reference groups are the most relevant when comparing welfare (Clark et al., 2008, 2009; Clark and Senik, 2010).

Table 2 presents a test of this mechanism using LiTS data. LiTS surveys, being only representative at the country level, don’t provide sufficient sample size for an accurate estimation of respondents’ position in the income distribution of their locality
Maksimovic (2008) found patterns consistent with these conjectures. Specifically, they found small firms were more financially constrained than others, and that they were unable to use trade credit and other informal sources of credit to alleviate those constraints. While trade credit could, in principle, be used as a substitute for lacking external finance, in practice credit from suppliers represented a smaller percentage of the total investment of small firms than of other firms. In regressions controlling for other relevant factors, the ratio of supplier credit to total investment was highest among medium-sized firms, though the coefficient was not significant across all specifications. Still, these patterns are suggestive of greater reliance on trade credit by mediumsized firms.

In terms of countries, poorer ones and those with low levels of financial and institutional development may be less likely to rely on trade credit than others. Financial underdevelopment could mean that there are fewer funds (notably bank credit) to redistribute via trade credit, while less developed market-supporting institutions imply heavy reliance on relational contracting to support trade credit arrangements, which limits their reach as illustrated again in the country case studies. For their part, advanced economies tend to have more formal financial development and better-developed courts and formal institutions that support arms-length contracting. These advantages can help to expand trade credit, but again those advantages also translate into greater access to many (formal) sources of external funding, and thus trade credit may not feature as heavily as a source of firm finance in those contexts.

Recent evidence from Reyes, Roberts, and Xu (2021) is consistent with the idea that trade credit is associated with productivity growth, especially in middle income countries. Using data from the World Bank Economic Surveys (WBES) from 709 cities in 128 countries, those authors find a significant positive relationship between the city-industry average for accounts payable (scaled by total sales) and growth in labor productivity, after controlling for a comprehensive set of firm characteristics and descriptors of the business environment (including infrastructure quality, human capital, access to bank finance
formation of religious associations in general is conducive to equal opportunity and the protection of religious freedom in the country.<sup>76</sup> Finally, public services and social protection can be enhanced by the work of NGOs locally. Data collection from the six economies revealed that none of them impose direct funding limitations to the work of NGOs. In Morocco and Tanzania, however, where homosexuality is criminalized, the law applies only to the work of NGOs dealing with the interest of ethnic and religious minorities but not the interests of sexual minorities. This situation can have some serious consequences for the LGBTI community. Despite having the fourth-highest number of deaths from AIDS in the world, Tanzania does not provide specialized HIV services to LGBTI individuals (Human Rights Watch 2013).

This survey of the laws on provision of public services and social protection in the six economies has shown that most countries acknowledge the importance of providing citizens basic access to public services and social protection, with some countries addressing discrimination in some but not all of the public services and social protection floors covered by the study. A notable exception on this topic is Tanzania, where the law is much less developed. In Vietnam, nondiscrimination provisions in obtaining public services are present, but indirect discrimination occurs as a consequence of other national laws that limit access of ethnic minorities in the country to certain public services.<sup>77</sup>

# _6. Protection from Hate Crimes or Hate Speech_

The indicator for protection from hate crimes or hate speech examines the existence of laws and mechanisms that prosecute hate crimes and laws that prosecute hate speech and provide protection for individuals belonging to ethnic, religious, and sexual minorities (see box 5). In addition to being a violation of the fundamental rights of every human being

> 75 International Center for Not-for-Profit Law, Morocco Act on the Right of Association, http://www.icnl.org/research/library/files /Morocco/Act-2002-en.pdf.

> 76 For example, see
, lon _i_ ) = lat _i_ + lon _i_ , and later, also be a thin-plate spline. Finally, _νi_ denotes the error term.

The Workers’ Party won the presidential elections in 2010, 2006, and 2002. Our model is calibrated to 2010, so we take the differences in votes between the 2010 and 2002 elections as a change in support for the Workers’ Party (the incumbent party). A shorter time interval may not allow infrastructure projects to be finalized. The share of people who voted for the incumbent party candidate, Luiz Inácio Lula da Silva, comes from the publicly available data provided by _Tribunal Superior Eleitoral_ (Superior Electoral Court).<sup>24</sup> Figure 10 shows the geographical distribution of votes in the 2006 elections. The incumbent party is supported by the Northeast, North, and East regions, while the opposition candidate prevails in the Central and South regions.

Table 10 gives the result of estimating equation (37). Models (1) and (4) correspond to the Fully Optimal allocations, models (2) and (5) correspond to the efficiency and coordination

> 24 The data can be accessed through their open data portal `https://dadosabertos.tse.jus.br/` . Numbers are at the municipality level, which we aggregate to the microregion level.

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the purview of the state, so this division closely parallels common discussions and definitions of informal and formal sectors. Our paper starts by outlining some key facts about India’s unorganized sector. We then undertake several empirical analyses to identify traits of state-industries where transitions occur.

The Indian data exhibit four key facts about the unorganized sector:

1. _The unorganized sector is very large_ – This fact is fairly well known, but worth repeating. For the manufacturing sector in 2005, 99% of establishments and 81% of employment are in the unorganized sector. The estimated size of the unorganized sector for services depends upon definitions, as discussed below, and ranges from 74% to 90% of services employment in 2006. Even if viewed from an establishment size distribution perspective, these shares are much larger than in the United States, for example. Moreover, Figure 1 shows that India’s unorganized sector is large for its stage of development.

2. _The unorganized sector is extremely persistent_ – India’s economy has undergone amazing changes during the past 20 years, but the share of the unorganized sector has remained stubbornly persistent. The employment share in the unorganized sector for manufacturing in 2
of the level of access to the health clinic or hospital; the survey asked community leaders if individuals can get treatment at the clinic or hospital even if they only have a little money. We also include an individual-level measure of the quality of health care. Respondents were asked: In general, are you satisfied with 1) the clinic/hospital building and equipment, 2) the staff at the clinic/hospital and 3) with the care you receive at the clinic/hospital? We summed the number of items to which the the respondent answered “yes” and created an index that captures satisfaction with health care delivery.

In 2005, the registration of births and deaths was devolved to the local council. If anyone in a respondent’s household had given birth in the past year, the interviewer asked whether the newborn received a birth certificate. If anyone in a respondent’s household passed away within the past two years, the respondent was asked if the household received a death

> 7Our Chiefdom shapefiles rely on Chiefdom boundaries established for the 2004 Census of Household and Population. In 2006, the Electoral Commission reviewed the division of Sierra Leone into constituencies, in accordance with the article 38 of 1991 Constitution which states that such review has to take place at intervals of not less than five and not more than seven years (Government of Sierra Leone, 1991). We believe that the Chiefdom boundaries might have been modified as result of this review, and Chiefdom numbers reduced to 149. We are in the process of validating this hypothesis by checking official Parliamentary Acts and getting access to updated Chiefdom shapefiles.

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otherwise similar observable characteristics more (see S ̈oderbom et al., 2006); and sorting is a key determinant of differences in labor income(Fafchamps et al., 2009). Yet evidence based on longitudinal data on labor market transitions from Latin America (see e.g. Maloney, 1999; Gong and Van Soest, 2002; Gong et al., 2004; Bosch and Maloney, 2006, 2010) suggests that characterizing self-employment as inferior to wage employment may be inappropriate since for many workers self-employment is a desirable alternative to formal sector employment, offering more flexibility and better pay. Although studies of this type are less prevalent in Africa, there are signs that African labor markets may not be highly segmented. To start with, average wages have been surprisingly responsive to unemployment rates (Kingdon et al., 2005). Secondly, while earnings vary systematically across sectors and are higher in formal wage employment, there is tremendous heterogeneity in returns within wage- and selfemployment (Falco et al., 2010); many of the self-employed earn more than comparable individuals in wage jobs. Moreover, Launov and Gunther (2012) test the dualistic labor market hypothesis by means of a mixture model that allows for endogenous segment selection using data from Cote d’Ivoire and reject it in favor of the Cunningham and Maloney (2001) and Fields (2005) views that argue that the informal sector has its own internal dualism.

3
firm-level variables are from the Prowess dataset provided by the Center for Monitoring of the Indian Economy (CMIE). This is a panel data set of Indian firms in the organized sector. It includes both listed and unlisted firms. The dataset has been used in several papers including Goldberg et al. (2010) and Topalova and Khandelwal (2011).

> 18For example, a nearest neighbor matching with one neighbor would mean that for firm _i ∈ T_ , the firm most similar to firm _i_ in the control group _C_ would have _wij_ = 1 and all the remaining firms in _C_ would have _wij_ = 0.

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