rafmacalaba/datause-encoder-data huggingface dataset:
agencies.<sup>12</sup> The Herfindahl index, which ranges from 0 to 1, is then subtracted from 1, and multiplied by 100, to form a fragmentation index, with high values indicating greater fragmentation. The formula yields higher values as the number of donors increases, and/or as their aid shares become more equal, i.e. where there is no dominant donor. Values among major aid recipients, averaged over 1982–2000, range from 28.4 for Gabon to 91.6 for Tanzania.

Year-by-year changes in this fragmentation index, averaged over all countries, show an upward trend from 1975 onward. This increase largely reflects an increase in the number of DAC donors. For example, the European Bank for Reconstruction and Development (EBRD) was founded in 1991 to aid the transition economies in Eastern Europe and former Soviet Union. Over time, some aid recipients, such as Greece and Portugal, became donors. The increasing trend in fragmentation, however, likely overstates any worsening of donor coordination. Increases in budget support and in the prevalence of sectorwide approaches in some recipients represents a countervailing trend over the last decade or so.

In addition to the DAC disbursements data, the Development Gateway’s AiDA (Accessible Information on Development Activities) data base is used to construct an alternative fragmentation index. This source contains records provided by the DAC and other sources on hundreds of thousands of investment projects and other activities financed by various donor agencies. A count of projects sponsored by each donor can be made. From these counts, a fragmentation index is computed from donors’ shares of projects. Fragmentation indexes were computed two different ways, first treating each funding nation (e.g. the USA) or multilateral institution as a single donor, and second, treating agencies or departments as separate donors (for example, USAID and USDA). The mean for the first index is (by construction) somewhat higher, but the two indexes are correlated at .92, and results differ very little when one is chosen instead of the other. Results reported in the tables below use the first index. For this project-based fragmentation index for the post–1982 period, values range from 15.9 for Suriname to 90.5 for Senegal.

Project counts and aid volumes provide somewhat different pictures of donor fragmentation. The two indexes are correlated at only .45. Indexes based on the number of projects may reflect actual problems associated with lack of donor coordination better than fragmentation indexes based on aid volumes, for which budget support provided by many donors could produce a high value. A disadvantage of the project data, however, is

> 12 O’Connell and Saludo (2001) compute Herfindahl indexes of donor concentration for aid recipients in Africa in the 1990s using the DAC data.

14
Policy Research Working Paper 6674

# **Abstract**

This paper analyzes the lending behavior of foreignowned banks during the recent global crisis. Using banklevel panel data for countries in Central and Eastern Europe, East Asia, and Latin America, the paper explores the role of affiliate and parent financial characteristics, host location, as well as the impact of parent geographic origin and reach on foreign banks’ credit growth. Overall, the analysis finds robust evidence that foreign banks curtailed the growth of credit relative to other banks, independent of the host region. Banks from the United States reduced loan growth less than other parent banks. Neither the global nor regional reach of parent banks influenced the lending growth of foreign affiliates. However, the funding structure of foreign bank affiliates and the capitalization of parent banks do help explain the lending behavior of foreign banks during the global crisis. Although not the focus of the paper, it also finds that government-owned banks played a countercyclical role in all regions.

This paper is a product of the Finance and Private Sector Development Team, Development Research Group. 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 egutierrez2@worldbank.org, mmartinezperia@worldbank.org and mjchoi@bok.or.kr.

_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
year fixed effects.<sup>22</sup> In this regression a single-product plant and a multi-product plant included in the sample during the same number of years have equal weight. Column (5) of Table 4 presents the results from this regression and shows that our main finding is qualitatively maintained.

Column (1) of Table 5 shows that the estimate of  _TC_ is robust to the addition of an indicator for the plant’s exporter status which controls for possible unit value differences for exporters independent of import competition. Measuring competition in the domestic market is inherently difficult. Column (2) of Table 5 shows that the effect of import competition is robust to the use of the sum of the market shares of the 5 plants with the largest market shares in each of the 4-digit industries to which a plant’s products belong as the measure of competition.<sup>23</sup> Moreover, within-country costs of transportation, among several other factors, may give plants in certain regions stronger market power. Hence, we show in column (3) of Table 5 the results from a specification where we add to our preferred specification regional Herfindahl indexes and market shares. Our estimate of  _TC_ remains qualitatively unchanged.

Table 5 also shows the results from three experiments to address potential reverse causality problems in our main specification. A first experiment consists of including in Equation (1) either the two-year or the three-year lag of transport costs. The results reported in columns (4) and (5) still show a positive and significant effect of lagged import competition on quality. A second experiment consists of modifying the definition of transport costs to exclude from the calculation of the weighted average country-product-year freight costs corresponding to import flows below 1,000 or 5,000 USD. The effects of import competition reported in columns (6) and (7) are still positive, significant, and are substantially higher than those in Table 3. This finding is reassuring

> 22 We refer the reader to Kugler and Verhoogen (2008) for further details on this two-stage procedure, in particular on the non-identification of some plant-year fixed effects.

> 23 In unreported regressions we also find robust effects of import competition when we replace the plant’s market share in each of its 4-digit industries by that in each of its 5-digit or 6-digit industries, or in each of its 7-digit products. Results are available from the authors upon request.

19
Policy Research Working Paper 5031

# **Abstract**

The Pan-Arab Free Trade Area, negotiated under auspices of the Arab League, came into force in 1997. Under the agreement all tariffs on goods of Arab origin were to be removed by January 1, 2005. This paper summarizes the results of a firm-level survey in nine countries regarding the implementation of the Pan-Arab Free Trade Area. A majority of respondent companies report that tariffs on intra-regional trade have largely been removed, and that there has been a marked improvement in customs clearance-related procedures. Costs associated with administrative red tape and weaknesses in transportrelated infrastructure services are ranked as the most important constraints to intra-regional trade. This suggests that from a policy perspective, efforts to reduce real trade costs deserve priority, including transportation and logistics services. Periodic monitoring and assessment of trade incentives and performance would help governments to benchmark performance and identify priority areas for action, at both the national and the subregional levels.

This paper—a product of the International Trade Department, Poverty Reduction and Economic Management Network—is part of a larger effort in the department to monitor and assess the impacts of regional trade agreements. Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org. The authors may be contacted at Bhoekman@ worldbank.org and jzarrouk@eim.ae.

_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
# 1 Introduction

What drives growth in rural nonfarm activities? This has been a key concern of policy makers and development economists in recent years (Lanjouw and Lanjouw, 2001; Lanjouw and Feder, 2001; Haggblade, Hazell and Reardon, 2006). This is not surprising in light of the empirical evidence that non-farm activities have emerged as a major source of income and employment in many developing countries especially for the asset-poor rural population. Various surveys of existing evidence highlighted two stylized facts about the pattern of nonfarm development in rural areas. First, these activities seem to thrive in areas experiencing higher agricultural growth (Haggblade, Hazell and Reardon, 2002). Second, a large chunk of these activities are located in and around towns and cities (Renkow, 2006). The empirical literature on non-farm activities, while recognizing the importance of both farm and urban linkages, has tended to examine them in isolation. Using a simple conceptual framework which combines these separate approaches to examining urban and farm linkages, this paper sheds some light on the relative strength of these two forces in determining employment in di ff erent types of nonfarm activities.

Because of its focus on both farm and urban linkages, two strands of literature are directly relevant for the empirical analysis of this paper. Perhaps the most predominant view among development practitioners about non-farm development is that growth of nonfarm activities in rural areas is driven primarily by agricultural productivity growth at least at the initial stage (Mellor,1976; Ranis and Stuart, 1973, Haggblade, Hazell and Reardon, 2006; Johnson, 2000). Various production, consumption and labor market linkages, according to this view, tie the development of nonfarm and farm sectors together, leading to multiplier e ff ects of productivity growth in agriculture.

Because of its obvious policy implications, early empirical studies on nonfarm activities de1
# References

- Asian Development Bank (2002). Localising MDGs for poverty reduction in Vietnam: Ensuring good governance for poverty reduction. Strategies for achieving the Vietnam Development Goals.

- Asian Development Bank and World Health Organization (2002). Lecalising MDGs for Poverty Reduction in Vietnam: Improving health status and reducing inequalities. Strategies for achieving the Vietnam Development Goals.

- Baulch and Minot 2001. The Spatial Distribution ofPoverty in Vietnam and the Potential for Targeting. (Draft).

- Baulch, Bob, Truong Thi Kim Chuyen, Domonique Haughton and Jonathan Haughton (2001). Ethnic minority development in Vietnam: a socio-economic perspective. Draft.

- Department for International Development, DFID (2002). Localising MDGs for Poverty Reduction in Vietnam: Providing quality basic education for all. Strategies for achieving the Vietnam Development Goals.

- General Statistics Office (1995). Vietnam Intercensal demographic survey 1994: major findings. Statistical Publishing House, Hanoi.

- General Statistics Office (2000). 1999 Population and Housing Census: sample results. The Gioi Publishers, Hanoi.

- Glewwe, Paul, Stefanie Koch and Bui Link Nguyen (2002) Child Nutrition, Economic Growth, and the Provision ofHealth Care Services in Vietnam in the 1990s. Policy Research Working Paper 2526. World Bank, Washington DC.

- Glewwe, P. & Hai-Anh Dang Hoang (2002). Has Vietnam's Economic Growth in the 1990's Been ProPoor? An Analysis of Data from the Vietnam Living Standards Surveys. Background paper for Vietnam Development Report 2003. Department of Applied Economics, University of Minnesota

Government of Vietnam (1996). The Public Investment Programme 1996 -2000.

Government of Vietnam (2001). National Plan ofAction for Advance of Women. Draft.

Socialist Republic of Vietnam (2002). The Comprehensive Poverty Reduction and Growth Strategy.

- Government of Vietnam, World Bank and other donors (2000). Managing public resources better: Vietnam public expenditure review. Joint report of the Government of Vietnam — Donor Working Group on Public Expenditure Review.

- Japan Bank for International Cooperation, JBIC (2002) Localising MDGs for Poverty Reduction in Vietnam: Enhancing access to basic infrastructure. Strategies for achieving the Vietnam Development Goals.

- Ministry of Health, (2000b). Strategy for People’s Health Care and Protection for the Period of 20012010.

- NEA/ World Bank/ DANIDA (2002). Vietnam Environment Monitor 2002. National Environment Agency, World Bank and DANIDA

- Schuftan Claudio and Le Dinh Cong (2001). The successful fight against malaria in Vietnam. In: Mekong Malaria Forum quarterly bulletin of the Regional Malaria Program in Cambodia Laos and Vietnam, issue no 8, December 2001.

- Shanks, Edwin and Carrie Turk (2002). CPRGS consultation with poor communities in Vietnam: summary of findings. World Bank Vietnam.

44
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- 48 -

Table 10 Cost Reductions from New Information: Rural C6te d'ivoire

|Initial<br>Information||New Informa'Ion||Perfect|
|---|---|---|---|---|
||Model I|Modeg 2|Model 4|Information|
|T = 10,000,000|||||
|**1,None (untargeted)**|||||
|a=1|6,500,000<br>(-65%)|6,200,000<br>(-62%)|6,300,000<br>(-63%)|7,100,000<br>(-71%)|
|a=2|7,400,000<br>(-74%)|7,100,000<br>(-71%)|7,100,000<br>(-71%)|9,750,000<br>(-97%)|
|a=3|8,100,000<br>(-81%)|7,700,000<br>(-77%)|7,800,000<br>(-78%)|9,300,000<br>(-93%)|
|2.Model 1|||||
|**a**=**1**|_|0|0|2,500,000<br>(-25%)|
|**a**=2|_|300,000<br>(-3%)|300,000<br>(-3%)|6,000,000<br>(-60%)|
|a<br>=3|_|400,000<br>(-4%)|700,000<br>(-7%)|7,250,000<br>(-72.5%)|
|T = 20,000,000<br>**1. None (untargeted)**<br>a=1|12,600,000<br>(-63%)|12,300,000<br>(-61.5%)|12,400,000<br>(-62%)|14,200,000<br>(-71%)|
|a= 2|13,600,000<br>(-68%)|13,500,000<br>(-67.5%)|13,500,000<br>(-67.5%)|17,200,000<br>(-86%)|
|a= 3|14,300,000<br>(-71.5%)|14,100,000<br>(-70.5%)|14,100,000<br>(-70.5%)|18,400,000<br>(-92%)|
|**2.**<br>**Model 1**|||||
|**2.**<br>**aMbdel**<br>**1**|.|1,100,000<br>(-5.5%)|100,000<br>(-0.5%)|6,900,000<br>(-34.5%)|
|a=2||2,300,000<br>(-11.5%)|1,400,000<br>(-7%)|12,700,000<br>(-63.5%)|
|a =3|_3,700,000|(-18.5%)|2,700,000<br>(-13.5%)|15,200,000<br>(-76|

Note: 1. All cost reductions are rounded to the nearest 100,000 CFA Francs.

2. Figures in parentheses give the % decrease in cost of attaining a given poverty level due to new information (relative to the old information set) and are expressed in terms of negative numbers.
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Relative deprivation, reference
            groups and the assessment of standard of living
This paper proposes two new indices of
            relative deprivation, derived from an extension of the
            concept of the generalized Gini for the measurement of
            distributional change. Population- and income-weighted
            relative deprivation indices are then defined and, using
            panel data from the Consortium of Household Panels for
            European Socio-Economic Research, this paper checks which of
            the various ways of defining individual deprivation best
            fits the answers given by individuals on the degree of their
            satisfaction with income. The analysis finds that the
            deprivation indices proposed are consistently and negatively
            correlated with income satisfaction as reported by
            respondents, that income weighted measures fit better than
            population weighted measures, and that this fit improves
            with countries that experienced deep institutional changes
            such as the transitional economies of Eastern Europe.
Innovative and absorptive capacity
            of international knowledge : an empirical analysis of
            productivity sources in Latin American countries
This paper examines two sources of
            global knowledge spillovers: foreign direct investments and
            trade. Empirical evidence demonstrates that foreign direct
            investment and trade can contribute to overall domestic
            productivity growth only when the technology gap between
            domestic and foreign firms is not too large and when a
            sufficient absorptive capacity is available in domestic
            firms. The paper proposes the terms research and development
            and labor quality to capture the innovative and absorptive
            capacity of the country. The spillover effects in
            productivity are analyzed using a stochastic frontier
            approach. This productivity (in terms of total factor
            productivity) is decomposed using a generalized Malmquist
            output oriented index, in order to evaluate the specific
            effect in technical change, technical efficiency change, and
            scale efficiency change. Using country-level data for 16
            Latin American countries for 1996-2006, the empirical
            analysis shows positive productivity spillovers from foreign
            direct investment and trade only when the country has
            absorptive capacity in terms of research and development.
            Foreign direct investment and trade spillovers are found to
            be positive and significant for scale efficiency change and
            total productivity factor change.