rafmacalaba/datause-encoder-data huggingface dataset:
- 10 -

Japan. Some of the ESCOs have already decided to exit the market in recent years, because of the excess competition.

More than 200 ESCO projects implemented in the past 15 years (1998-2012) were initially identified. The questionnaire survey was conducted from November 2011 to January 2012. The questionnaire was sent out to 111 governmental offices in 29 prefectures. The effective response rate turned out to be about 55 percent. Detailed procurement data were collected for about 100 ESCOs. The data include a wide range of public facilities, from administrative offices to schools and hospitals. Public pools and gyms are also included. Because of lack of relevant information, the following regression analysis uses only about 70 ESCO cases.<sup>12</sup> The summary statistics are shown in Table 2. The previous section has already defined the four dependent variables, _INV_ , _SAVE_ , _DUR_ and _PAY,_ used in the analysis. The average investment amount is about JPY270 million or US$3 million, which in return reduces energy spending by JPY32 million per annum. The contract duration is about 120 months or 10 years on average. Asset owners, i.e., local governments, pay a service fee of JPY30 million to ESCOs every year.

For the weight matrix, _w_ , the original scores are normalized to a scale of 0 to 100 to make them comparable across auctions. Then, several evaluation criteria aimed at the same objective are aggregated to one weight. For example, the weight on energy savings, _wSAVE_ , is a summation of the scores that are attached to four criteria: energy savings guaranteed, compliance with efficiency targets, annual energy spending reduction, and CO2 emission reduction.

The competition effect, _N_ , is defined by the number of firms that actually applied for the selection process. They participated in a question-and-answer and walk-through session and made the final presentation. The ESCO industry is not necessarily thick even in developed

> 12 In total 171 buildings and facilities are covered by these 100 ESCO projects, because some projects are composed of more than one building (i.e., packaged contracts).
# **8. References**

- Adida, Claire L., Adeline Lo, and Melina R. Platas (2018), “Perspective Taking Can Promote Short-Term Inclusionary Behavior toward Syrian Refugees.” _Proceedings of the National Academy of Sciences of the United States of America_ 115(38): 9521–26.

- Allen, William, and Scott Blinder (2018), “Media Independence through Routine Press-State Relations: Immigration and Government Statistics in the British Press.” _The International Journal of Press_ 23(2): 202–26.

- Alrababa’h, Ala’ et al. (2020), “Attitudes Toward Migrants in a Highly Impacted Economy: Evidence From the Syrian Refugee Crisis in Jordan.” _Comparative Political Studies_ 54(1).

- Altındağ, Onur, and Neeraj Kaushal (2021), “Do Refugees Impact Voting Behavior in the Host Country? Evidence from Syrian Refugee Inflows to Turkey.” _Public Choice_ 186(1–2): 149–78.

- Auer, Daniel (2018), “Language Roulette–the Effect of Random Placement on Refugees’ Labour Market Integration.” _Journal of Ethnic and Migration Studies_ 44(3): 341–62.

- Bahar, Dany, Ana María Ibáñez, and Sandra V. Rozo (2021), “Give Me Your Tired and Your Poor: Impact of a Large-Scale Amnesty Program for Undocumented Refugees.” _Journal of Development Economics_ 151: 102652.

- Bansak, Kirk, Jens Hainmueller, and Dominik Hangartner (2016), “How Economic, Humanitarian, and Religious Concerns Shape European Attitudes toward Asylum Seekers.” _Science_ 354(6309): 217–22.

- Bansak, Kirk, Jens Hainmueller, Daniel J. Hopkins, and Teppei Yamamoto (2019), “Beyond the Breaking Point? Survey Satisficing in Conjoint Experiments.” _Political Science Research and Methods_ : 1–19.

- ———. (2021), “Conjoint Survey Experiments.” In _Advances in Experimental Political Science_ , Cambridge University Press, 19–41.

- Betts, Alexander, Maria Stierna Flinder, Naohiko Omata, and Olivier Sterck (2021), "Social Cohesion and Refugee-Host Interactions: Evidence from East Africa." _Unpublished Working paper_ . Commissioned as part of the “Preventing Social Conflict and Promoting Social Cohesion in Forced Displacement Contexts” Series. Washington, DC: World Bank Group.

- Black, Richard, and Khalid Koser (1999), “The End of the Refugee Cycle?” In _The End of the Refugee Cycle? Refugee Repatriation and Reconstruction_ , , 288.

- Borjas, George J. (2014), Immigration Economics _Immigration Economics_ . https://www.hup.harvard.edu/catalog.php?isbn=9780674049772 (April 22, 2021).

- Boubtane, Ekrame, Jean Christophe Dumont, and Christophe Rault (2016), “Immigration and Economic Growth in the OECD Countries 1986-2006.” _Oxford Economic Papers_ 68(2): 340–60.

- Bozorgmehr, Kayvan, and Oliver Razum (2015), “Effect of Restricting Access to Health Care on Health Expenditures among Asylum-Seekers and Refugees: A QuasiExperimental Study in Germany, 1994–2013” ed. Joan A Caylà. _PLOS ONE_ 10(7): e0131483.

- Bragg, Bronwyn, and Lloyd L. Wong (2016), “‘Cancelled Dreams’: Family Reunification

27
the domestic market bought mainly T-bills to reap huge profits was temporarily broken. The domestic credit extended by the Central Bank to the Treasury reached record amounts. 53% of the limit of STA's were extended in only the first 3 weeks, which approximately corresponded to 30 % of the net foreign assets of the Central Bank, This liquidity pumped in to the system at a time when the demand for TL was low, led to several runs against the TL in January, February and March 1994. The Central Bank, prior to- and in between the official devaluations, was heavily intervening in the overnight market to defend the parityv°, and overnight rates did jump to compounded annual rates exceeding 1000% at times. (See Figure 14) The percentage depreciation of the TL was about 16, 6, 18, and 35 during the first 4 months of 1994 respectively. The TL dropped to 39,900 against the US$ on April 7, but recovered to 33,400 TL/US$ at the end of the month.

Now we turn to the story behind the run against the TL and the drainage of Central Bank foreign assets in greater detail. It was noted before that an important portion of the inflows of foreign capital to Turkey took the form of short term off-shore borrowing. Although it is not possible to see the discrepancy between the foreign assets and liabilities of deposit banks in IFS data'" (See Figure 15), many commercial banks held short positions in foreign exchange, and lent domestically at high rates, including to the Treasury. It is noted in different sources that banks had large open positions especially in 1993. Ozatay (1996) notes that open foreign exchange positions

**10** The Central Bank Governor resigned at the end of March 1994 as a result of the conflicts between him and the PM over the conduct of policy.

11 The IFS data on the total foreign assets and liabilities of the Deposit Banks in Turkey (including state owned, foreign and commercial banks) shows the stock amounts, therefore does not reveal the flow imbalances arising from maturity mismatch and valuation issues.

14
with publicly-available time-series data on school closure policies and mobility in those countries.

The firm-level data was collected as part of the Future of Business (FoB) survey which is administered on Facebook to business owners and managers with a Facebook Business Page (see global descriptive report Facebook Data For Good (2020)).<sup>2</sup> The data are a repeated cross-section of approximately 25,000 firms across 50 countries surveyed every month over six months in 2020 and in the last two weeks of September 2021 for a total sample size of 154,458 firms.<sup>3</sup> The survey was designed specifically to examine how childcare and domestic responsibilities affect business performance and included questions on gender, family characteristics, childcare arrangements, time spent on childcare and domestic responsibilities, as well as core firm-level outcomes such as business closure and revenues.<sup>4</sup> In our main analysis we trace through the effects of school closure policies to increased care and firm closure, controlling for a mobility index in the country that captures the contemporaneous economic impact of the COVID-19 shock on business demand. Accounting for movement in the country helps us to isolate the impact of the childcare shock from an overall COVID-19 related demand shock on business outcomes.<sup>5</sup> We also control for a country’s wealth using 2019 level of GDP in each country. In the paper we show that school closures lead to higher firm closures and increased responsibilities within the home and this effect is only present for women entrepreneurs with children under 18. Women entrepreneurs with older children or no children, are not differentially affected by school closure policies than male entrepreneurs.

Our contributions are threefold. First, we contribute to a growing literature documenting

> 2In May 2020, the Future of Business (FoB) survey was adapted from its standard bi-annual approach to run six monthly survey waves to provide timely insights on the impact of the COVID-19 pandemic on small businesses and to take the pulse of their needs and challenges.

> 3High-frequency survey data was collected in the last week of every month throughout 2020 from May 2020 to October 2020, and September 2021 at a time when traditional data collection systems were disrupted.

> 4Domestic responsibilities include household chore activities such as cooking and cleaning.

> 5School closure policies related to COVID-19 are taken from data collated by UNESCO that indicates whether a country was fully open, partially open, on an academic break or closed due to COVID-19 over time (UNESCO, 2020 and 2021). Mobility data is from Google mobility data which records the change in mobility relative to pre-COVID-19 pandemic levels (Google, 2020 and 2021).

3
# **References**

- AFRICON (2008). Unit costs of infrastructure projects in sub-saharan africa, africa infrastructure country diagnostic. Background Paper No. 11 (Phase I), Africa Infrastructure Country Diagnostic, The World Bank.

- Ahmed, F. Z. (2013). Remittances deteriorate governance. _Review of Economics and Statistics 95_ (4), 1166–1182.

- Alesina, A. and B. Weder (2002). Do corrupt governments receive less foreign aid? _The American Economic Review 92_ (4), 1126–1137.

- Alexeeva, V., C. Queiroz, and S. Ishihara (2008). Monitoring road works contracts and unit costs for enhanced governance in sub-saharan africa. Transport Paper 21, The World Bank.

- Alexeeva, V., C. Queiroz, and S. Ishihara (2011). Monitoring road works contracts and unit costs for enhanced governance in europe and central asia. Transport Paper 33, The World Bank.

- Bandiera, O., A. Prat, and T. Valletti (2009). Active and passive waste in government spending: Evidence from a policy experiment. _The American Economic Review 99_ (4), 1278–1308.

- Banerjee, A., S. Mullainathan, and R. Hanna (2012). Corruption. NBER Working Paper No. 17968.

- Benamghar, R. and A. Iimi (2011). Efficiency in public procurement in rural road projects of nepal. World Bank Policy Research Working Paper 5736.

- Blattman, C. and E. Miguel (2010). Civil war. _Journal of Economic Literature 48_ (1), 3–57.

- Board, S. (2011). Relational contracts and the value of loyalty. _American Economic Review 101_ (7), 3349.

- Burgess, R., R. Jedwab, E. Miguel, A. Morjaria, and G. Padro i Miquel (2015). The value of democracy: Evidence from road building in kenya. _American Economic Review 105_ (6), 1817–51.

25
Policy ReseaRch WoRking PaPeR 4403-

# **Abstract**

The generation, diffusion, absorption and application of new technology, knowledge or ideas are crucial drivers of development. This paper surveys the diverse approaches to innovation adopted by East Asian economies, the problems faced and outcomes achieved, as well as possible policy lessons. Knowledge flows from advanced countries remain the primary source of new ideas in developing economies. The authors evaluate the role of three main channels for knowledge flows to East Asia - international trade, acquisition of disembodied knowledge and foreign direct investment. The paper then looks at the exceptionally fast growth in domestic innovation efforts in Korea, Taiwan (China), Singapore and China, drawing on information about R&D as well as original analysis of patent and patent citation data. Citation analysis shows that while East Asian innovations continue to draw heavily on knowledge flows from the US and Japan, citations to the same or to other East Asian economies are quickly rising, indicating the emergence of national and regional knowledge stocks as a foundation for innovation. A last section pulls together findings about policies and institutions to foster innovation, under three heads: the overall business environment for innovation (macroeconomic stability, financial development, openness, competition, intellectual property rights and the quality of communications infrastructure), human capital development, and government fiscal support for innovation.

This paper—a product of the Chief Economist Office in the World Bank's East Asia and Pacific Region —is part of a larger effort in the Region to better understand the conditions and policies conducive to innovation and productivity growth in East Asia. . Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org. The author may be contacted at mbrahmbhatt@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, 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 Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent._ Produced by the Research Support Team
Our paper is related to the discussion on the short-term need versus long-term cost of public debt. In the short-run, public debt can alleviate financial constraints, allowing governments to increase or maintain public consumption and investment. Governments, especially in developing countries, have many pressing spending needs with potentially high returns, such as the spending necessitated by the pandemic, but may lack the resources to finance these activities. Public debt provides those financial resources. Nevertheless, the short-term impact of government spending is also a matter of debate, which is related to the lietarure on fiscal multipliers. Friedman (1978) discussed the potential crowding out effects of financing government deficits. He argued that the magnitude of the real crowding out effect depends on whether economic resources are fully employed. The literature tends to find that the fiscal multiplier is larger (i.e., a one dollar government spending has the larger effect on the economy) when the output gap is large (Corsetti et al., 2012; Riera-Crichton et al. 2015; Auerbach and Gorodnichenko, 2012), public debt is low (Ilzetzki et al., 2013; Huidrom et al., 2020), and countries have good governance (Izquierdo et al., 2019).

In addition, government debt, while bringing short-run benefits, may incur long-run costs. Our paper is related to a vast literature on the effect of government debt and growth. The findings in this literature are ambivalent. Starting from the seminal contribution of Reinhart and Rogoff (2010), many studies have investigated this relationship, attempting to identify to what extent debt accumulation has a detrimental effect on GDP growth. The literature seems to refute the idea of a common threshold across countries ( <mark>Eberhardt and Presbitero, 2015; Chudik et al., 2017). But th</mark> e literature does not rule out the possibility of country-specific debt thresholds—including ones in debt intolerant countries that result in “extreme duress” if crossed (Reinhart et al., 2003 and Reinhart and Rogoff, 2009).

More directly, our paper is related to the evidence of the impact of government debt on firms’ investment, which is much more scant. <mark>Huang et al. (2020) is closest to our approach. They use Chinese firm-level data to estimate the crowding-out effect of rising public debt in China. They find that local public debt in China crowded out private firms' investment by tightening their funding constraints while leaving state-owned firms’ investment unaffected. Moreover, the impact is stronger for small firms than larger firms, a finding</mark> 5
POLICY RESEARCH WORKING PAPER 1624

# Summary findings

Barbone, Marchetti, and Paternostro argue that significant adjustment took place in Polish industry after Poland's 1990 reforms. They analyze data on two-digit and three-digit manufacturing industries, disaggregated by firm ownership and size. By applving a statistical model to labor productivity growth, they try to disentangle structural determinants of the recovery from cyclical determinants. They contend that structural determinants ourweigh cyclical ones.

They find that the productive response of state enterprises was markedly different from that of private firms. Private firms outperformed state enterprises (just as anecdoral evidence suggested).

Size also matters, at least among private firms. Generally, there seem to be increasing returns to scale for private firms, except for very large enterprises (many of which were previously state-owned and may need further restructuring).

The fact that size does not appear to matter among public enterprises suggests that several of them have not yet adopted optimal technologies and production processes.

This paper - a product of the Country Operations Division, Europe and Central Asia, Country Department **II** - is part of a larger effort in the department to analyze and disseminate the lessons of the economic transformation of former socialist countries in the 1990s. Copies of the paper are available free from the World Bank, 1818 H Street NW, Washington, DC 20433. Please contact Cielito Pelegrin, room Hll-123, telephone 202-458-5067, fax 202-477-1692, Internet address mpelegrin@worldbank.org. July 1996. (25 pages) _The Policy Research WVorking 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, ev en if the presentations are less than fully polished. The papers carry the names of the authors and should be used and cited accordingly. The findings, interpretations, and conclusions are the authors' own and should not be attributed to the WVorld Bank, its Executive Board of Directors, or any of its member countries._ Produced by the Policv Research Dissemination Center
**Figure 1. Corporate Income Tax Rates around the World (%)**

<!-- Start of picture text --> 40<br>35 35 34 33.2<br>30<br>30 28 28 27.9 27.2<br>24.2 25 25 25 24.1 23.6<br>25 22 22.5 21.3<br>20 19 19 20 20 20 18.7<br>20 17<br>15 15<br>15<br>10<br>5<br>0<br><!-- End of picture text --> Source: Author’s Calculations based on KPMG.2014. Corporate Tax Rates Table and Bangladesh National Board of Revenue. 2014.

_Notes: The rate for India is for domestic companies; the rate for Bangladesh is for companies not listed on stock exchange_

**Table 1. Corporate Income Tax Rates in South Asia in 2004 and 2014, %**

|Country|2004|2014|% change|
|---|---|---|---|
|Bangladesh|37.5|35|6.7|
|India|35|30|14.3|
|Pakistan|35|34|2.9|
|Sri Lanka|35|28|20|
|Global Average|29.5|23.6|20|

Source: KPMG. 2014. Corporate Tax Rates Table; KPMG Corporate Tax rates Survey 2004; Pomerleau, K, 2014 and India Ministry of Finance 2004

# _<u>Preferential treatment of certain sectors and activities</u>_

All four South Asian countries provide tax incentives to specific economic activities, often without a clear rational. Agricultural income receives special tax treatment throughout the region (Table 2). In Bangladesh, select agricultural activities, such as poultry farming and production of corn and sugar beet, receive tax concessions. In India and Pakistan, agricultural income is largely untaxed. In both countries, only the states or provinces have a constitutional right to collect agricultural income taxes. In India, agricultural income taxes are levied in only six states with plantation agriculture (large scale commercial cultivation of cash crops such as tea, coffee or cotton).<sup>5</sup> Farmers have the option of paying taxes based on agricultural income or the amount of land owned.<sup>6</sup> In Pakistan, all four provinces tax agricultural income but in implementation “the income tax” actually functions as a land tax, which is paid by large landholders based on the acreage of land owned.<sup>7</sup> In Sri Lanka, agricultural income is taxed at a reduced rate of 10%.

> 5 Rajaraman, Indira. 2004. “Taxing Agricultural Income in a Developing Country: A Possible Approach”, World Bank, Washington DC

> 6 Ibid

> 7 Pakistan Institute of Legislative Development and Transparency.2011. “Taxing the Agriculture Income in Pakistan”, Briefing Paper No.42, Islamabad, Pakistan

6
until the rate of return on capital falls back to the initial level.<sup>19</sup> To analyze trade policy, this comparative steady state approach has been employed by many authors, including Harrison, Rutherford and Tarr (1996, 1997) and Baldwin et al. (1999) and Francois et al. (1996). The approach, however, dates back to the 1970s, when both Hansen and Koopmans (1972) and Dantzig and Manne (1974) used it. The approach ignores the foregone consumption necessary to achieve the higher level of investment and thus, is an upper bound estimate on the long run gains within the framework of the model assumptions.

# **Data**

**Input-output table.** The  key data source for our study is the social accounting matrix taken from Kiringai. Thurlow and Wanjala  (2006). This is a social accounting matrix (SAM) for the year 2003. The table is very rich in agricultural detail, with 20 agricultural sectors. Given our focus on services, we found it necessary to disaggregate the single transportation sector into five sectors (based on value of output data of the various transportation sectors published in the _Economic Survey, 2006_ for Kenya by the Central Bureau of Statistics (2007a, p. 198)) and the single financial services sector into insurance, and banking and other financial services, from data in Central Bureau of Statistics (2007a, pp. 95-98. We assumed that the input output structure for all sectors using these services was identical for the disaggregated sectors. A full listing of the sectors and factors of production is provided in table 1. Kiringai et al. (2007) also provide a set of twenty household accounts integrated into the social accounting matrix. These are twenty households are ten rural and ten urban, ranked according to income.

# **Share of Expatriate Labor Employed by Multinational Service providers.** The impact of

liberalization of barriers to foreign direct investment in business services sectors on the demand for labor in these sectors will depend importantly on the share of expatriate labor used by multinational firms. We explain in the results section that despite the fact that multinationals use Kenyan labor less intensively than their Kenyan competitors, if multinationals use mostly Kenyan labor, their expansion is likely to

> 19 The rate of return on investment in our model is the rental rate on capital divided by the cost of a unit of the capital good.

15