rafmacalaba/datause-encoder-data huggingface dataset:
interesting case because, in homogeneous good competitive models, no entry would occur and the initial no-FDI equilibrium would continue to be an equilibrium once entry is permitted. However, due to the demand for both foreign and domestic varieties, both must exist in equilibrium unless they are banned. Thus, even with no cost advantage, foreign service providers will enter. In a competitive model without variety productivity effects, the second column would be identical to the first; but in our model, the second column in fact shows a welfare increase of 3%. With the Armington assumption and perfect competition, however, we would also achieve trade.

# **Conclusions**

Although there is a clear trend among developing countries to liberalize their policies with respect to inward foreign direct investment (UNCTAD, 1995, 272-275), many developing countries continue to impose restraints on FDI in general and in services in particular. These policies may be motivated by the fear that foreign service providers will harm domestic skilled workers. For example, examination of the commitments on services of WTO members in their GATS schedules reveals that 32 countries (mainly in Africa and Latin America) have scheduled ―horizontal restrictions‖ that require foreign firms to use and train domestic skilled workers. In many cases these restraints may impede the foreign firm from importing the specialized people it would desire.

One of the more interesting results of our stylized model is that the real wage of domestic skilled labor increases with liberalization of policies against foreign service providers, and the more foreign firms there are in the domestic market the more the real wage of domestic skilled workers increases. Thus, despite the fact that foreign firms import an input ( _V_ ) and thereby use domestic skilled labor less intensively than domestic firms, additional foreign firms benefit 25
the destination country. Furthermore, as an alternative and to check for robustness, we construct a novel proxy of digital tourism platform adoption, based on _Google Trends_ data, to get a more direct look at the use of digital tools for tourism purposes.

Before describing our model, data and econometric results in more detail, the next section provides further information on the evolution of tourism trends, its relevance for development outcomes, and the increasing use of digital tools in travel and tourism activities. We pay particular attention to countries in the Middle East and North Africa (MENA) and in Sub‐Saharan Africa (SSA), as the countries in the two regions have only recently been catching up with the rest of the world in terms of the use of digital tools, with a presumption that there is untapped potential to leverage the new technologies and help create more jobs.

# **2. International tourism and the digital economy**

## **2.1 Tourism matters for development**

Tourism represents over 10% of global GDP, it is the second‐fastest growing industry in attracting FDI, and it is the second‐largest job creator, supporting 292 million jobs by the end of 2016 (International Finance Corporation, 2017). There is a strong correlation between tourist arrivals and employment and GDP in the travel and tourism industry: a 10‐percent increase in arrivals translates into a 6.3 percent increase in jobs in the industry, and a 10 percent increase in travel‐and‐tourism GDP (Figure 1).

There is evidence of a causal impact as well. Arezki et al (2009) estimate growth equations that incorporate measures of tourism specialization. The authors use information from UNESCO’s World Heritage List to construct an instrumental variable for tourism and apply it to a cross‐section of countries for the period 1980–2002. They find that tourism specialization is positively correlated with economic growth, with a one standard‐deviation increase in the share of tourism in exports leading to a 0.5 percentage point in additional annual GDP growth. Similarly, Sequeira and Nunes (2008) use panel data methods and find that tourism has a positive impact on economic growth. More recently, Faber and Gaubert (2019), using microdata for Mexico, find that tourism results in “large and significant” economic gains — employment, GDP — in tourist destinations relative to other regions. Their identification is based on measures of tourism attractiveness that result from local natural and cultural characteristics. In their simplest estimation results, the authors find that a 10 percent increase in tourism revenues leads a 2.5 percent increase in relative employment and a 2 percent increase in population. They also find sizable Page **4** of **34**
_Proceedings of the National Academy of Sciences_ 113 (27), 7449-7453; DOI: 10.1073/pnas.160456611 Theisen, Ole, Nils-Petter Gleditsch and Halvard Buhaug, H. (2013). “Is Climate Change a Driver of Armed Conflict?” _Climatic Change_ 117(3), 613-625.

- UNHCR (2017). https://www.unhcr.org/jo/12449-unhcr-continues-to-support-refugees-injordan-throughout-2019.html. Last retrieved: 19 September 2021.

UNHCR (2019). https://www.unhcr.org/jo/12449-unhcr-continues-to-support-refugees-in- <u>jordan-throughout-2019.html. Last retrieved: 19 September 2021.</u> UNHCR (2021a). https://www.unhcr.org/en-us/syria-emergency.html Last retrieved: 19 September 2021.

UNHCR (2021b). UNHCR Lebanon Fact Sheet. July 2021.

https://reporting.unhcr.org/lebanon. Last retrieved 19 September 2021.

Valli, ElsaAmber Peterman and Melissa Hidrobo (2019). “Economic Transfers and Social Cohesion in a Refugee-Hosting Setting.” _The Journal of Development Studies_ 55(1): 12 146.

VASYR (2002). https://reliefweb.int/report/lebanon/vasyr-2020-vulnerability-assessmentsyrian-refugees-lebanon. Last retrieved: 19 September 2021.

Whatley, Mark J., Matthew Webster, Richard Smith and Adele Rhodes (1999). “The Effect of a Favor on Public and Private Compliance: How Internalized is the Norm of Reciprocity?” _Basic and Applied Social Psychology_ 21: 251–259.

Richard Wike, Bruce Stokes and Katie Simmons (2016). “Europeans Fear Wave of Refugees Will Mean More Terrorism, Fewer Jobs.” _Pew Research Center_ 11.

World Bank (2013) World Development Report: Jobs. Washington, DC.

World Bank (2020). Lebanon Overview. Retrieved on June 17, 2021: <u>https://www.worldbank.org/en/country/lebanon/overview</u> World Bank (2021). Jordan Economic Monitor, Spring 2021. Retrieved on Ocotber 21, 2021: - <u>https://documents1.worldbank.org/curated/en/831601624470221546/pdf/Jordan Economic-Monitor-Spring-2021-Uncertain-and-Long-Trail-Ahead.pdf</u> 29
Enterprises that are incorporated are significantly more likely to do R&D, and incorporation is a plus factor for process innovation by old and large firms and for TFP of micro and mature firms. Government ownership stake in an enterprise (of greater than 10%) is a generally significant negative factor for innovation and for TFP. Foreign private ownership stake in an enterprise (of greater than 10%) is a significantly negative factor for innovation, especially in the non-OECD sample, and yet is a positive factor overall for TFP.

Foreign borrowing (but not investment capital from local banks) is a strong and statistically significant correlate of R&D activity and TFP for small and young establishments, but is not directly a significant correlate of their innovation (while controlling for R&D), and access to credit does not show material relationships with any of our innovation indicators for other category firms. Firms that export are significantly more likely to engage in R&D (except for large firms employing more than 200 employees) and to innovate (except for large and young firms). There is a strong and significant positive correlation in all categories of firms between export activity and TFP. Use of the internet, access to other essential business services (ISO certification, formal worker training programs, being part of a business association), and formal cooperation with other firms (participation in a new foreign joint venture and entering into a new licensing agreement) are all generally strong positive correlates of enterprise product and process innovation. Internet use, formal training programs (for relatively old and large firms), and membership in a business association (for old firms particularly) are significant positive correlates of TFP.

# **_4.5 The roles of competition in innovation-driven growth_**

How important is product market competition in stimulating innovation-driven growth? We explore this important policy question at two levels given our available data: the first based on firm-level proxies for the intensity of active competition; and the second based on nationallevel assessments of the openness of the business environment to competition.

# **_Firm-level intensity of competition variables_**

We test whether two measures of firm-level competition—the self-reported number of competitors faced by a firm and whether the firm faces a foreign competitor—are correlated with R&D investment, product and process innovation, TFP and employment growth. Unfortunately, however, these variables were not collected in all the country surveys that comprise our full sample. Accordingly, we restrict our analysis of these firm-level competition variables to the sample of firms for which they are available, constituting less than 50 per cent of our full allcountry sample. We do not find any statistically significant effects at the level of the enterprise in any of the four firm-level R&D, innovation, TFP and employment growth equations for either the self-reported number of competitors, the log of this measure or an indicator of the presence 22
physical infrastructure. In fact, however, only a sub-set of schools benefited systematically from all actions what will be called from now on components 1358.

To assess the probable impact of the PARE program we consider a number of experiments based on the following question: What would have been the program's historical performance if it had been implemented as envisaged without faults or delays. We construct counterfactual experiments based only on those schools, which received all of the main components of the program. Before going into the analysis, it's important to mention that the information available posed important constraints for building a panel data set.

Table 3 shows the distribution of students by school type in the sample. Our analysis will focus on schools located in rural and native communities, the two most disadvantaged groups in the population with the lowest educational attainment, poorest test performance and highest incidence of school desertion. At the margin, the supplemental actions provided by the program should have the greatest impact amongst this population. Table 4 shows the resulting samples for analysis considering that, for the reasons already noted, we concentrate our attention on a sub-set of these schools -- those which benefited integrally from the program.

**Table 3. Distribution of students by school type,** 1992.

|**CWapa**|**s Guetrem**|**Fidalgo C**|**Oxam**|**SA,**<br>|**cta:**|IVichoacan:|T|
|---|---|---|---|---|---|---|---|
|LIban<br>396|<br>107|257|357||1,119|<br>361|1,480|
|**Rual**<br>200|<br>202|175|239||816|<br>208|1,024|
|Nafive<br>197|<br>114|122|259||692|<br>205|897|
|Conru*<br>19|<br>11|29|59||118|<br>Z7|145|
|**TOaW**<br>814|<br>434|583|914||2,745|<br>801|3,546|
|Source: PARE's databa<br>**T**<br>**Native &**<br>**Rural.**<br>**With**|se<br>**able 4. St**<br>**Native &**<br>**Rural. With**<br>**comp. 1358**|**udents inclu**<br>**Sub-total**<br> <br>**included in**<br>|**ded i**<br>**Nati**<br>**Rural.**<br>**so**|**n the**<br>**ve &**<br>**With**<br>**me**|<br>**analysis**<br>**Urban**<br>**Commu**|<br> <br>**, 1992.**<br>**&**<br>Sub-total<br>excluded<br>**nity**<br>**from the**|<br>**TOTAL**|
|**comp. 1358**|**and other**|**the analysis**|**compo**|**nente**|**School**|**s**<br>**analysis**||
|Experimental<br>585|624|<br>1,209||299|1,|237<br>1,53|6<br>2,745|
|Control<br>0||0<br>413||0||388<br>38|8<br>801|
|**TOTAL**<br>585<br>Of which: Native<br>Rural|624|<br>1,622<br>769<br>853||299|1,|625<br>1,92|4<br>3,546|

Source: PARE's database.

6
32 the growth rate of connections was higher than the rate of growth of real GDP per capita. Indeed, even In those countries where there was little or negative growth over the period, most of the countries experienced more than a 5% annual growvth In generation and more than a 3% annual growth in connections-

# Quality of Service and Losses

Quality of service did not become a particular Issue In the Bank until the late 1970s when the economic colt of power outages and the cost of losses became increasingly important. Before then, losses were dealt with as a relatively minor aspect In prolects. The Institution of ESMAP, however, focussed specific attention on the reduction of both technical and non-technical losses. The level of technical losses can serve as a proxy measure for the quality of service which can be described In terms of frequency and duration of outages and voltage and frequency changes. Of course, some technical losses are unavoidable because of the characteristics of the power system. Generally, 6-8% In transmission and distribution losses as a fraction of gross generation Is regarded as a good target. Station use at the generators might normally Increase losses by a further 1-7%, depending on the type of power plant, ranging from hydroelectric to coal-fired thermal.

Losses over and above the "nofmal" level for an efficient utility result from technical and non-technical causes. High technical losses are systemic and are a function of overloading. They are symptomatic of poor power network design, construction, and maintenance, all of which lead to a poor service quality. Inadequate generating facilitles leading to load shedding, particularly at the time of peak load, will further compound the 2/ M. Munasinghe, The Economics of Power Svstem Rellability and Planning, Johns Hopkins Univ. Press, Baltimore, MD, 1979; and M. Munasinighe and W.G. Scott, Eneraiv Efficlency: Oatimization of Electric Power Distribution System Losses, Energy Department Paper No. 6, 1982.
investment levels, while guaranteeing, by the necessary subsidies, the supply of noneconomical social services.

There are other situations that include some mixed forms of cooperation between private and public capital. For example, in some countries rail services are provided in a regime of _service contract_ with the private sector, where, maintaining full ownership, governments or public enterprises can contract any activity to be performed by a private sector entity. Examples of these activities are food catering, medical services, systems of ticket sales, maintenance of physical assets, etc. Related to these there are _management contracts_ with the private sector, where the contractor assumes the responsibility for the operations and maintenance of certain activities. A variation on these is given by _leasing_ to the private sector. In this case, the contractor pays a fee for the use of the fixed assets. The contractor has more autonomy than in management contracts, controlling aspects such as the working capital and the staff. For this reason, the lease contractor assumes more risk than a management contractor. The owner maintains responsibility for investment and debt service. In many countries wagons and locomotives are sold or leased to non-railway entities, as in the transportation of very specialized goods.

**Box 2.3. Alternative organizational structures** in railways.

<!-- Start of picture text --> I~ ~~ovrun Inia Chna_oe<br>S -'' ~~~i"'' ' --'-I1 '<br><!-- End of picture text --> Source: Elaborated from Galenson and Thompson (1993).

_-15-_
21

**Table 1 (cont). Labor Force Characteristics for Cambodia and Sri Lanka**

||||Panel|B: Sri L|anka|||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||1992|1993|1994|1995|1996|1997|1998|1999|2000|2001|2002|2006|2008|2011|2012|
|_Employment and Education_||||||||||||||||
|Labor force participation rate, all|46.1|47.1|47.2|47.1|44.2|48.0|51.8|50.4|50.5|49.4|50.2|52.1|48.7|45.0|44.8|
|Labor force participation rate, male|63.1|64.6|64.9|65.1|61.2|64.3|67.2|66.7|66.6|66.7|67.8|72.1|67.4|63.9|64.5|
|Labor force participation rate, female|29.4|30.1|29.9|29.7|28.6|32.0|36.8|34.4|34.6|32.6|33.4|33.7|31.7|27.8|27.0|
|Females in employment (percent)|28.4|29|28.9|29.3|32.4|31.3|34.1|32.9|33.2|32.1|32.4|30.7|34.1|32.8|32.1|
|Hours worked, all|40.9|41.2|42.2|42.1|39.7|38.5|39.2|39.1|38.4|41.8|40.2|n/a|40.0|46.1|46.2|
|Hours worked, male|42.4|42.5|43.6|43.5|40.5|39.9|41.3|41.0|40.1|43.6|42.1|n/a|42.4|48.7|48.7|
|Hours worked, female|37.2|38.1|38.6|38.8|37.7|35.3|35.1|35.1|35.0|37.8|36.3|n/a|35.2|40.7|40.8|
|Years of education|7.7|7.8|7.9|8|7.5|7.7|7.9|8|8|8.3|8.3|8.4|8.5|8.7|8.8|
|Years of education for females in T&G|9|9.2|9.3|9.4|9.5|9.2|9.5|9.5|9.6|9.8|9.6|10|10.2|10.3|10.2|
|Years of education for men in T&G|9.3|9.1|9.2|9.4|9.7|9.4|9.3|9.6|9.7|10.1|9.7|10.3|10.4|10.4|10.3|
|Average years of education in T&G|9.1|9.1|9.3|9.4|9.6|9.2|9.5|9.6|9.6|9.9|9.6|10.1|10.2|10.3|10.2|
|_Employment Share of the Industry_||||||||||||||||
|Agriculture (percent)|29.61|29.7|27.11|25.66|39.54|39.43|40.76|39.23|38.45|33.34|33|24.89|32.27|32.62|29.95|
|T&G (percent)|7.1|7.2|8.12|8.31|8.72|8.37|8.17|8.23|9.04|8.99|5.82|5.8|6.03|4.93|5.46|
|Share of female in T&G (percent)|53.4|59.7|54.8|56.1|57.5|61.0|58.3|56.9|59.5|55.4|72.3|69.3|73.4|72.3|71.1|

_Source:_ Calculations based on the Sri Lankan 2006 Household Income and Expenditure Survey (HIES) and the 1992–2002, 2008, 2011, and 2012 Labor Force Surveys. Hours worked were not reported in the Sri Lanka HIES 2006. _Note:_ T&G = textiles and garments.
Table 11: Relationship of overall returns to capital and the country average of project rates of return (ERR).

||Unweighted||Weighted b<br>projectsa|y number of|
|---|---|---|---|---|
||Full|Without outliersb|Full|Without outliersb|
|Return to capital|.178<br>(.107)c|.102<br>(.116)|.163<br>(.119)|.106<br>(.878)|
|Impact of ERR on<br>return to capital|.439<br>(.750)|1.08<br>(.821)|.626<br>(.705)|1.06<br>(.722)|
|R-Squared|.450|.507|.345d|_.506d_|
|N|39|37|39|37|

Notes: a) observations are weighted by the square root of the number of projects, b) the two outliers excluded are Syria and Pakistan, c) standard errors in parentheses, d) R-squared of the unweighted dependent variable.

Source: Authors' calculations.

# Cnnclusimn

No one would pretend that the degree of civil or political liberties or the choice of political regime is--or ought to be--based on an assessment of strictly economic costs and benefits. What is often meant by the definition of 'human rights" are exactly those elements of the interaction of human beings that go beyond any social welfare calculus.

That said, we have presented empirical evidence that, beyond their intrinsic merit, civil liberties have direct instrumental benefits in improving the performance of a least a subset of government investment projects, those financed by the World Bank. We believe that this is an additional piece of evidence for the view that increasing public voice and accountability--

- 38 -
170 models, _e.g._ , Barrage and Nordhaus, 2024). The theory of adjustment costs captures the opportunity 171 costs associated with the use of scarce resources, such as skilled labor (Lucas, 1967; Gould, 1968; 172 Mussa, 1977). Ha-Duong et al. (1997) develop a climate-economy model with adjustment costs and 173 demonstrate that adjustment costs and socioeconomic inertia act in concert to raise the optimal rate 174 of emissions abatement. More recently, Campiglio et al. (2022) include these effects in a dynamic 175 stochastic general equilibrium model of decarbonization, finding a net premium of 33% on the optimal 176 carbon price today relative to a model without adjustment costs.

## 177

# **II General theoretical model**

178 We consider a centralized planner that decarbonizes the economy for the least cost such that some 179 emissions budget, _B_ – referred to as the remaining carbon budget (RCB) – is not exceeded.<sup>7</sup> The 180 planner discounts the future at the social discount rate _r ≥_ 0. The economy has a set of _I_ sectors. 181 Investment and abatement in a given sector _i ∈ I_ are given by _xi_ ( _t_ ) _>_ 0 and _ai_ ( _t_ ) _>_ 0, respectively, 182 and the economy-wide cumulative emissions are given by _ψ_ ( _t_ ). Each sector can be described by: (i) 183 a convex cost of investment in abatement technologies, _ci_ ( _xi_ ( _t_ )); (ii) an emissions rate _a_ ̄ _i >_ 0; (iii) a 184 capital depreciation rate, 0 _< δi <_ 1; and (iv) a start time, before which no investment occurs, _t_ 0 _,i ≥_ 0. 185 The convexity of the cost function endows the system with adjustment costs (Lucas, 1967; Gould, 1968; 186 Mussa, 1977).

> 7The remaining carbon budget is a geophysical quantity that relates the amount of carbon dioxide emissions the atmosphere can withstand before a particular long-term temperature threshold is crossed (Intergovernmental Panel on Climate Change, 2021). While a global quantity from a geophysical perspective, the RCB parameter here can also be interpreted as the integrated flow of emissions a particular nation has committed to in compliance with their nationally determined climate target. Our model would then inform the cost of being compliant with such a nationally determined emissions budget.

8
But the distortion of applying the same conversion factor to men and women is mitigated by the compulsory use of joint life annuities. In addition, the retirement age of women is gradually being raised to that of men. Applying the same uniform annuity conversion factor to single persons, especially single men, imposes a heavy penalty on them. Nevertheless, available evidence shows that single men are as likely to use life annuities as married men.<sup>8</sup>

**<u>Table 7: Types of Life Annuities</u>**

||Price<br>Regulation|Types and Terms|
|---|---|---|
|Australia|None|Various butlittle demand|
|Chile|None|Prior to 2004: Fixed real annuities;<br>joint life annuities for men;<br>option for guaranteed annuities (very popular)<br>Since 2004: Option of combination of a fixed<br>real annuity (at least equal to PBS for normal<br>age retirees and above 80% of PMAS and 70%<br>of worker’s real wage for early retirees) and<br>either a phased withdrawal or a variable<br>annuity|
|Denmark: ATP|Unisex Life Tables|'Guarantee and Bonus' life annuities<br>Longevity and investment risks shared with<br>participants|
|Denmark: Other|Unisex Life Tables|'Guarantee and Bonus' or 'unit-linked' life<br>annuities<br>Longevity and investment risks shared with<br>participants|
|Sweden: PPM|Unisex Life Tables|'Guarantee and Bonus' or 'unit-linked' life<br>annuities<br>Longevity and investment risks shared with<br>participants|
|Sweden: Other|Unisex Life Tables|'Guarantee and Bonus' or 'unit-linked' life<br>annuities<br>Longevity and investment risks shared with<br>participants|
|Switzerland|Fully regulated<br>(minimum annuity<br>conversion factor)|Fixed joint life nominal annuities<br>Possibility of bonus|

Sources: Andersen and Skjodt (2007); Brunner and Thorburn (2008); Buetler and Ruesch (2007); Palmer (2008); Rocha and Rudolph (2010); Rocha and Thorburn (2007); and Vittas (2008).

Chile also applies an extensive regulation to the use of life annuities. Until 2004, only fixed real life annuities (i.e., annuities linked to inflation) and annuities denominated in a foreign currency (mainly the US dollar) were permitted. Fixed nominal, escalating and variable (bonus-based or unit-linked) annuities as well as term annuities were not allowed. However, in 2004 the use of a combination of a fixed real annuity equal to the PBS with either a variable annuity or a program of phased withdrawals was authorized. Early retirees can opt for a combination of alternatives when the fixed part of the annuity

> 8 This is probably explained by two factors: single men have a weaker bequest motive; and annuity conversion factors in the open market are likely to be significantly lower (Buetler and Ruesch 2007:19, 49).

16