rafmacalaba/datause-encoder-data huggingface dataset:
sector. The spike in international cocoa prices may, however, be short lived and producers should be wary of over investing in a sector whose prices may decline in the future.

# **B. Geography and Ecology of Cocoa Production**

Cocoa is grown primarily in the humid areas of the North, Northeast, East, North Central, and Central regions in flat to sloping land of up to 300m elevation. The major cocoa production zone, with about 61% of land area planted to cocoa, is in the Northeast region around San Fransisco de Macoris (table IV.2). Cocoa production is considerably more geographically concentrated than coffee production, but some areas of production overlap (especially in the central mountain ranges).

**<u>Table IV.2 Spatial Distribution of Cocoa Plantings by Region, 2000/1</u>**

|Region|% of<br>Production|
|---|---|
|Northeast|60.8|
|East|13.0|
|Central|10.2|
|North|9.4|
|Northcentral|6.6|
|TOTAL|100%|

Source: “Informe Anual de las Estadísticas del Cacao 2001/2”, SEA, Departamento del Cacao, Santo Domingo (2002) Although some growing areas for cocoa and coffee overlap, coffee is grown on hillier terrains at higher elevations; cocoa is grown on more gentle slopes or flat land at lower elevations. The hilly areas where coffee is grown are subject to erosion, and coffee provides protection against erosion. Cocoa is grown on the lower slopes of mountain ranges where it offers some protection against erosion, but not to the same extent as coffee. This topography makes transport less costly in cocoa zones compared to coffee zones. Because harvested cocoa pods do not require the immediate attention needed for harvested coffee cherries, and because of the topography, it is more practical and economical to operate post-harvest facilities for groups of producers; which is important for improving quality.

## **Overlapping Areas of Cocoa and Coffee Production**

Central Region contains about 10% of cocoa planted area and almost 25% of coffee area. The mountainous areas of Central Region are crucial for the region’s and national watershed management and water quality. Interestingly, of producers in the CRMG surveys, about 12% of coffee producers inter-planted with cocoa, and about 26% of cocoa producers claimed they interplanted with coffee.

The relatively dry winter in cocoa-producing areas account for a low incidence of diseases and pests. Because of these favorable growing conditions, few agri-chemicals are typically used in cocoa production.<sup>54</sup> Thus, the Dominican Republic has good ecological conditions for producing certified organic cocoa. In contrast to major cocoa producing countries in Africa, the Dominican Republic has not been afflicted by common diseases such as black pod disease, witches’ broom,

> 54 Secretaria de Estado de Agricultura, Departamento de Cacao, “Anuario de los Países Productores de Cacao” 1998

54
defined as an establishment whose value of hired land and building assets relative to its total holding of land and building value is higher than 0.1.<sup>20</sup> Columns 1-3 suggest that output and employment levels, value of land and buildings on which a plant operates (irrespective of ownership), plant machinery holdings, and other fixed assets correlate strongly with loan usage. The coefficient for land and building usage is quite high compared to other assets given its share in total assets. Columns 2 and 3 suggest that land and building values relate much more closely to loan levels for owners of these assets compared to renters, which is to be expected. The importance of plant machinery and other fixed assets in establishing loans is slightly higher for renters, perhaps due to insufficient collateral in the form of land and building holdings.

District banking penetration also matters for an effective loan demand/supply. Columns 4-9 repeat these specifications by whether the district is above the median in terms of household banking facilities as measured in the 2000 Census. For the organized plants in districts with above-median banking penetration, land and building values comprise 22-26% of an average establishment’s asset values depending on survey year; for below-median districts, this range is 14-19%. The sample split suggests that land and buildings are more important in settings where banking conditions are weak. This is evident in the combined regression of Column 4 and in the owner-renter split in Columns 5 and 6, compared to those for stronger banking markets. In the latter, land and building assets resemble much more plant machinery and other fixed assets, although the owner differential persists. We find similar patterns when splitting districts based upon terciles of banking access.

Table 5b illustrates how we calculate expected loan values for measuring overall loan misallocation. Compared to the estimations in table 5a, we remove asset holdings. While our complete procedure estimates loan access at the industry level, we pool industries and include industry-year fixed effects in this showcase regression. As in

> 20 This cut-off is based on the distribution of the rentals shares for land and building. This distribution is fairly bimodal, mostly split between those who own almost all of their land and building assets and those who rent completely.

29
-13-

be equal to about 7% of total personal income taxes (HUF 290 billion) or approximately 10% of the general government deficit in 1995 (HUF 214 billion or 3.9% of GDP).

**Table 3: Hungary: Stock of Household Savings in 1995**

(in billions of Forint, as of December 31, 1995)

||Stock of savings|Potential taxable<br>interest payments|
|---|---|---|
|Cash and Sight Deposits|426.4|0|
|- Forint|380.4|0|
|- Foreign exchange|46.0|0|
|Deposits|1,033.7|141.9|
|-Forint deposits|640.7|128.1|
|- Foreign exchange deposits|393.0|13.8|
|Securities|613.3|58.6|
|-Banksecurities|292.8|58.6|
|- Other (bonds, gvt. bonds, bills, stocks)|320.5|0|
|Provisions for insurance premiums|74.7|0|
|Small business deposits|33.9|6.8|
|TOTAL|2,182.0|207.3|

Sources: National Bank of Hungary (Monthly Reports) and own calculations.

Given very high rates of revenue productivity, withholding taxes on capital income can be considered to be a very efficient and reliable tool to raise revenue. In addition, administration is cheap and compliance costs for taxpayers low. Does this mean that the Government should increase tax pressure on capital income? It is important, in this respect, to look at _net tax revenues._ The counterpart of taxing interest received by the creditor is deductibility of interest payments on the part of the debtor, for example a corporation. In other words, while the government gains revenue from personal income tax, it loses corporate income tax revenue. In the extreme, in a closed economy with lending and borrowing taking place between agents facing identical marginal tax rates on capital income, both effects cancel each other out and interest taxation raises zero net _1 5_ revenue.

_15_ If, in addition, government bonds are sold, the net tax base (as well as net tax revenue) turns positive, as the government collects taxes from bondholders but does not suffer tax losses incurred by deductibility of interest payments.
Maskin, E., Y. Qian and C. Xu. 2002. “Incentives, Information, and Organizational Form,” _Review of Economic Studies_ , 67, 359-378.

Mian, Atif, 2006. “Distance Constraints: The Limits of Foreign Lending in Poor Economies”, _Journal of Finance_ , 61, 1465–1505.

Nie, Huihua and Minjie Jiang, 2011. “Coalmine Accidents and Collusion between Local Government and Firms: Evidence from Provincial Level Panel Data in China,” _Economic Research Journal_ (in Chinese), 6, 146-156.

Petersen, Mitchell A., and Raghuram Rajan, 1994, “The benefits of firm-Evidence from small-business data”, _Journal of Finance_ 49, 3–37.

- Petersen, M. A., and R. G. Rajan, 2002. ‘‘Does Distance Still Matter? The Information Revolution in Small Business Lending,’’ _Journal of Finance_ , 57, 2533–2570.

Qian, Yingyi. 2000 “The process of China’s market transition (1978-1998): The evolutionary, historical, and comparative perspectives,” _Journal of Institutional and Theoretical Economics_ , 156(1), 151-171.

Qian, Y., G. Roland, C. Xu. 2006. “Coordination and experimentation in M-Form and U-Form Organizations,” _Journal of Political Economy_ 114 _,_ 366-402.

Qian, Yingyi, Gerard Roland, Chenggang Xu, 1993. “Why China’s Economic Reforms Differ: The M-Form Hierarchy and Entry/Expansion of the NonState Sector,” _Economics of Transition_ , 1(2), 135-170.

Samuelson, Paul, 1973. _Economics_ 9<sup>th</sup> Edition, McGraw Hill.

Shleifer, A., and R. W. Vishny, R. W., 1994. “Politicians and firms.” _Quarterly Journal of Economics_ 109 (4), 995–1025.

27
change in response to energy prices. At the global level, Sato and Dechezleprêtre (2015) use energy price indices from 42 countries during 1996–2011 to study the impact of changes in energy price differences between trading partners on trade flows. Based on direct energy costs alone, these studies find a significant yet small negative effect of higher energy costs on export performance.

Using input-output information, another strand of literature on the trade-energy nexus emphasizes the importance of accounting for the indirect energy consumption of intermediate inputs. For example, Bordigoni, Hita and Le Blanc (2012) find that the energy content embodied in imported intermediate inputs is close to the total direct energy consumption of European industry. A significant part of the embodied energy costs of manufactured products in Europe is therefore not affected by domestic energy price changes. Sato et al. (2015) evaluate the impact of embodied energy on energy security. They find that the geographic diversity of embodied energy imports is much greater than that of direct energy imports, and that there is considerable variation across countries in the diversification of embodied energy imports.

This paper builds on both strands of literature by combining an econometric model of international trade with multi-country input-output information to measure the effect of energy costs aggregated over all stages of production on export performance. We first develop a theoretical framework based on a Melitz-type trade model in which each country produces one variety in each sector and there are multiple countries and sectors with heterogeneous productivity. We incorporate tradable intermediate goods in the model to inform our empirical strategy. We then compute the embodied cost (direct plus indirect cost) of factor inputs (electricity, natural gas and labor) using the OECD inter-country input-output tables for 10 sectors of production. The key parameters of interest are estimated by Poisson pseudo maximum likelihood using panel data for 43 countries from 1991 to 2012. We control for exporter-by-importer fixed effects, exporter-year fixed effects, importer-year fixed effects and sector-year fixed effects to sweep out variations due to bilateral trade resistance (such as distance, and differences in language and culture) and time-varying shocks at country and sector levels (such as exchange rate fluctuations and regulatory and technology changes). The causal effect of energy costs on trade is identified by country-sector-year variation including differences in electricity prices, sector-specific energy intensity, and inter-country 3
# **Appendix: Survey Tools and Websites**

# <u>PETS/QSDS (proportion of funds reaching designated health facilities)</u>

- World Bank PETS/QSDS Survey Tools <u>http://go.worldbank.org/1KIMS4I3K0</u>

- PETS/QSDS instrument used in Mozambique <u>http://go.worldbank.org/I2TPOUU6J0</u>

# - <u>Drug availability (stock out rates)</u>

- Health Action International Survey Instruments: Prices, Availability, Affordability, and Price Components

- <u>http://www.haiweb.org/medicineprices/manual/documents.html</u>

- IMAT (Inventory Management Science for Health) Tool, Indicator 3: Percentage of Medicines in Stock <u>http://www.msh.org/resource-center/inventory-management-assessmenttool.cfm</u>

- International Medical Products Anti-Counterfeiting Taskforce (IMPACT) <u>http://www.who.int/impact/en/</u>

# <u>Counterfeit drugs</u>

- United States Pharmacopeia

- <u>www.usp.org</u>

- Pharmaceutical Security Institute

-

- <u>http://www.psi inc.org/index.cfm</u>

- TruScan

- <u>http://www.ahurascientific.com/material verification/products/truscan/index.php</u>

- Securing Pharma <u>www.securingpharma.com</u>

# <u>Other Links</u>

The World Bank‟s Country Policy and Institutional Assessment (CPIA): http://go.worldbank.org/7NMQ1P0W10 WHO‟s World Health Report 2000: http://www.who.int/whr/2000/en/index.html WHO‟s International Health Regulations (IHR) http://who.int/topics/international_health_regulations/en/ ______________________________________________________________________________________

-37-
In Eq. (3) we consider a final decomposition that exploits the role of product dynamics in the export growth of continuing exporters in their continuing destinations: where the variables and indexes are defined as above, _X tCCD_ − _k_ are average exports of continuing exporters in their continuing destinations in year _t-k_ , _CCDCP_ indexes variables for continuing products (exported by continuing exporters in both _t-k_ and _t_ ), _CCDEP_ indexes variables for new products (exported by continuing exporters in _t_ but not in _t-k_ ), _CCDDP_ indexes variables for exiting products (exported by continuing exporters in _t-k_ but not in _t_ ), and _NEP_ and _NXP_ are the numbers of new and exiting products of continuing exporters, respectively. The first term in Eq. (3) provides the contribution of continuing products, i.e., the product intensive margin, while the second and third terms provide the contribution of new and exiting products to export growth of continuing exporters, i.e., the product extensive margin.

Panel C of Table 5 presents the decomposition in Eq. (3) focusing on products at the HS 6-digit level and indicates that the product intensive margin accounts on average for 90% of short-run export growth of continuing exporters in their continuing destinations between 2002 and 2008. At the height of the global financial crisis in 2008-2009 this percentage increased to 97% suggesting that the traditional products sent by Turkish continuing exporters to their continuing destinations were severely hurt by the recession and explain almost entirely the strong decline (-22.1%) experienced. Interestingly, the dominance of continuing products for continuing exporters declines in 2009-2010 as the recovery from the crisis begins. Although on net the contribution of new products and dropped products is low throughout Panel C, there is a high degree of churning along the HS 6-digit product dimension. In 2004-2005 and in 2005-2006, the growth in exports of new products in gross terms makes up about 70% of the growth of continuing exporters in their continuing destinations, though this is counteracted by a strong negative contribution of dropped products which make up around 60% of export growth.

16
|Kilby, 2015|3,627|WB|1994-2010|X<br>.<br>.<br>ns|.|.<br>.|<br>+|.<br>+|+|<br>.<br>.|+<br>.|
|---|---|---|---|---|---|---|---|---|---|---|---|
|Limodio, 2021|3,385|WB|1970-2012|X<br>.<br>.<br>.|.|.<br>.|<br>.|.<br>.|.|.<br>.|.<br>.|
|Moll et al., 2015|312|WB (DPL)|2004-2012|X<br>.<br>.<br>ns|.|+<br>.|<br>.|.<br>ns|.|.<br>ns|.<br>.|
|Presbitero, 2016|3,945|WB (IPF)|1970-2007|X<br>.<br>.<br>ns|.|–<br>.|<br>.|.<br>ns|+|<br>–<br>ns|.<br>.|
|Shin et al., 2017|647|WB|2006-2014|X<br>.<br>.<br>+|ns|+<br>.|<br>.|.<br>.|.|.<br>.|.<br>.|
|Smets et al., 2013|182|WB (DPL macro)|1985-2008|X<br>.<br>.<br>ns|.|.<br>.|<br>+|.<br>ns|.|ns<br>ns|.<br>+|
|Wane, 2004|1,697|WB|1996-2002|X<br>.<br>.<br>ns|.|.<br>.|<br>+|.<br>.|.|.<br>+|.<br>.|
|Winters, 2019|2,024|WB|2000-2017|X<br>.<br>.<br>+|.|–<br>.|<br>.|.<br>.|.|.<br>.|.<br>.|
|Wood et al., 2020|456|AusA|2005-2019|X<br>.<br>.<br>+|ns|.<br>.|<br>.|.<br>+|ns|<br>.<br>ns|.<br>.|

Notes: (1) Asian Development Bank (ADB); Australian Government Aid (AusA); Inter-American Development Bank (IADB); Project Performance Database (PPD) which combines 7 international donors; and World Bank (WB). When a study analyzed only specific sectors or instruments - such as Investment Project Financing (IPF) or Development Policy Lending (DPL) - this is noted in parenthesis.

(2) Coefficients coded as (+) (–) indicate the signal of a coefficient found to be significant at the 5 percent level; (ns) indicates the coefficient was not significant at the 5 percent level; (nr) indicates the factor was included as a control but its direction and/or significance were not reported. Those markers refer only to the main specification in the paper, according to the discussion of the results.

38
column shows that the probability that lottery winners in the EXP actually receive treatment is higher when children were enrolled in school at baseline and is also higher in rural areas than in urban areas. A higher compliance rate in the EXP would relocate some families from the (Z=0, T=1) group to the (Z=0, T=0) group thereby lowering the poverty level in the latter group. At the same time it would relocate some families from the (Z=1, T=0)-group to the (Z=1, T=1) group, thereby increasing the share of children with lower enrollment levels at baseline in the latter group. If poverty and low enrollment at baseline are both negatively correlated with lower enrollment rates, then the enrollment levels of both the treated and the control groups are upward biased.<sup>14</sup> But since the low compliance rate is mainly due to the high take-up are of transfers among ineligible families, and higher compliance rate in the EXP-design would probably lead to a larger relocation in this group, and thereby to a larger impact estimate of the program.

Columns 3 and 4 repeat this for the eligible and ineligible groups in the RDD. Families just below the threshold are more likely to actually receive the cash when the mother lives in the house (this is expectable since the money is provided to the mother). Moreover, in both groups (eligible and ineligible) living in an urban area significantly reduces the chances of collecting the cash. It is not clear a priori whether, and if so in which direction, these composition effects would bias the RDD-estimates.

# **6. Summary and discussion**

This paper evaluates the impact on school enrollment from a program in Ecuador that gives cash transfers to the 40 percent poorest families. Using data from a randomized experiment and from a regression discontinuity design, we find heterogeneous effects of the program on school enrollment. Around the first quintile of the poverty index the cash transfer of US$ 15 per month increases school enrollment from 75% to 85%. Around the second quintile the cash transfer has no impact and school enrollment remains 85%. This suggests that for the poorest families in Ecuador the program lifts a credit constraint while this is not the case for families close to the eligibility threshold.

Increasing school enrollment is one of the main goals of the cash transfer program in Ecuador. Our findings suggest two different avenues to enhance the program’s effectiveness. Because children in families close to the program’s eligibility cutoff are not affected by the

> 14 Put differently, the poorest households were likely to receive transfers no matter whether they lost or won the lottery.  These households are therefore unlikely to be compliers in the language of Angrist, Imbens and Rubin (1996).  A similar argument holds for households whose children were enrolled at baseline—they were more likely to receive transfers than those households whose children were not enrolled at baseline, no matter what their lottery status.

12
and are unwilling to work in jobs that they consider beneath them or that are not in their line of training.

To explore this in more detail, the follow-up surveys asked about willingness to work in different types of jobs. In the October 2012 survey, 84 percent of job candidates said that the type of work mattered more to them than the salary paid. The median reservation wage for those who were unemployed was 250 JD, below the median wage of those who were employed. This suggests high reservation wages are not the main constraint. In contrast, youth do appear to be unwilling to work in certain types of jobs. Table 5 reports the results from the May 2013 survey, which asked unemployed youth their willingness to work temporarily in a range of different jobs. We see that the majority are prepared to work in jobs such as human resource management, data entry, public sector jobs, and being a bank teller. However, only 3 percent of unemployed youth say they are willing to work as a waiter, only 10 percent in outdoor sales, and only 25 percent in telemarketing. Most youth therefore appear to prefer to stay unemployed than work in jobs that they consider low prestige.

# **4. Experiment 2: Testing Reservation Prestige and Willingness of Workers to Apply to Job Openings**

Our second experiment is motivated by the results of the first experiment that educated youth appear unwilling to work in certain types of jobs. We explicitly measure their willingness to apply for jobs in occupations which are considered more or less prestigious.

# **4.1 The Sample**

The _job candidate sample_ for our second experiment consists of 2,002 recent graduates from community colleges and universities. We marketed our new program as _Yalla Watheefa_ (Let’s Go Get a Job) and advertised it through flyers, brochures, Facebook, and Yalla Watheefa ambassadors who would recruit candidates on university campuses around Amman. The program was advertised as a free program for fresh graduates to inform them of job openings. Recruitment took place in April and May 2013, just before graduation. Both males and females were eligible to participate, with eligibility limited to individuals graduating between May 2012 and May 2013. Individuals who were already employed, who were not seeking a job, or who were older than 26 were excluded from the sample. To enroll individuals filled out an application 19