rafmacalaba/datause-encoder-data huggingface dataset:
_-5-_

**THE INTERNATIONAL OCEAN TRANSPORT INDUSTRY IN CRISIS** _Assessing tk Reasons and Outlook_

## GLOSSARY OF MARITIME TERMS

- _Baltic Freight Index (BFI)_ The BFI shows the weighted average freight rate level and weighted average trip time charter hire level on a 3pecific day of the dry bulk cargo shipping market. It is centered on thirteen frequently fixed and settled worldwide voyages on selected routes. The BFI is traded on the Baltic International F, ight Futures Market (BIFFEX) for specified future settlement months--up to two years ahead--by open negotiation. The price being quoted for each contract month will constantly change in line with supply and demand in the market. Hence the (price) indicators will reflect the views of investors in the market as to what the settlement price for the futures contract will be and, thereby, what the level of the physical shipping market will be at the time.

_Bareboat Charter -_ A contract under which a shipowner provides a vessel to a charter party. Under this form of chartering the shipowner virtually relinquishes all responsibilities and rights in respect of his vessel for a specified period of time, in return for a pre-arranged, regular payment of hire. The charterer becomes a disponent owner, operating, crewing, and chartering the ship as though he were the owner.

_Bulk Carriers/Bulker/Dry Bulk Ships/Dry Bulkers -_ All these references denote vessels that range in size from small coastal craft to ships of over 150,000 deadweight capacity which are designed for the carriage of oulk commodities, like grain, ores, or fertilizers.

# _Bunker -_ Ships propulsior fuel

_Classification Societies -_ Independent, non-profit making bodies which are directed by committees of persons representing shipowners, shipbuilders, engine manufacturers, and underwriters. They exist for the purpose of ensuring that ships are properly constructed and maintained in a seaworthy and safe condition. To fulfill this function, the mc:, established societies make rules governing vessel construction, arrange and carry out surveys during the construction of a vessel and throughout its subsequent trading life. They also conduct research covering construction, efficiency and safety of seagoing vessels.

_Combination Carriers -_ Ships designed to carry either oil or other cargo, normally not concurrently. They include Ore/Oilers (0/0), Ore/Bulk/Oilers (OBO), Oil Products/Bulk/Crude Oil carriers (PROBO), and tankers wLch can also load a limited number of containers.

_Conferences -_ Organizations whereby a number of shipowners, often of different nationality, offer their services on given sea routes on conditions agreed by the members.

_Container Ships -_ Vessels designed to carry full loads of containers in fixed cell guides. Containers are frequently carried on deck where they require to be lashed and secured. The carrying capacity of these ships is specified in TEU, and may range from 300 to 500 TEU for feederships to 4,500 TEU for the most modern deep-sea linehaul units.
the interaction between foreign and domestic firms. The latter would include programs for capacity building which allow domestic firms to become competitive suppliers of multinationals, and the development of entrepreneurial parks for both domestic and foreign firms, among others.

Summarizing, since the presence of foreign subsidiaries in Turkey is having a significant productivity-enhancing effect in domestic firms, there is a case for authorities to actively pursue the attraction of long-term foreign capital. In a context of slowdown in the EU accession and privatization processes, achieving larger FDI inflows in Turkey would need mitigating exchange rate variability, expanding infrastructure (penetration of telecommunications), and strengthening institutions (property rights protection and law and order).

# **5. Conclusion**

This paper has addressed two main research questions: firstly, understanding the extent to which foreign investment is contributing to productivity gains by domestic firms (both the firms receiving the investment and other, related firms) and thus, indirectly, to economic growth; and, secondly, identifying the determinants of foreign direct investment attraction, in order to understand how the Turkish economy, which traditionally underperformed in terms of FDI inflows, could increase its appeal to foreign investors.

In order to tackle the first question we draw from the ORBIS/AMADEUS data set, featuring financial accounting information from detailed harmonized balance sheets and profit and loss accounts for 7,000 companies established in Turkey, over the period 2005-2012. This data set has also the advantage of providing detailed ownership information, including the “links” between companies and their shareholders, together with the country of origin of the investor. Both labor productivity and total factor productivity (as in Woolridge, 2009) are computed. We first find that the main (and only) determinant of foreign direct investment at the micro level is firm and sector productivity. Thus, to mitigate a potential selection bias, we opt for a dynamic regression in differences, following FonsRosen et al. (2014).

We find that firms that receive foreign direct investment in Turkey see an increase in their productivity four years after the arrival of foreign capital. In this sense, Turkey is not different from other countries; it is a well-established finding in the literature that, in general, it takes 3-5 years to realize potential benefits of FDI. On the other hand, while there is evidence of an increase in 27
# **Appendix A.  Graphs.**

**Graph 1. The Homicide Rate per 100,000 Inhabitants 1946-2009**

<!-- Start of picture text --> 1940 1950 1960 1970 1980 1990 2000 2010<br>Year<br>Source: National Police Department<br>80<br>60<br>40<br>20<br>0<br><!-- End of picture text -->

**Graph 2.  Victims of Massacres: 1993-2009**

<!-- Start of picture text --> 1995 2000 2005 2010<br>Year<br>Atlantic Central<br>Coffee-Growing South<br>Colombia<br>Source: Vice-Presindent's Observatory of Human Rights<br>15<br>1500<br>10<br>1000<br>Colombia<br>5<br>500<br>0 0<br><!-- End of picture text --> 35
loan in the past year (39 percent versus 29), and, specifically, to have taken a joint liability loan (six percent versus three). Participants also score somewhat higher on questions designed to elicit a sense of trust, fairness, and altruism.<sup>5</sup> The correlates of poverty (assets, cooking with kerosene) show the participants to be similar to the broader population but slightly poorer on average.

From a broader methodological perspective, the survey shows that participants in lab experiments in the field cannot be assumed to represent the general population. While the economic and social variables show participants are roughly similar to the general population of the community, they are more similar to those of the typical microfinance borrowers.

Since our experiment randomizes contract structure within the games, nonrandom selection will not affect our results unless demographic characteristics also predict behavior in the lab. To check this, we ran between-effects regressions of individual risky project choice on the set of socioeconomic characteristics and found that, with the exception of the propensity to hold a savings account, the variables do not systematically predict risky play.<sup>6</sup> To further control for nonrandom characteristics, we also run all main specifications with individual-level fixed effects, sweeping out the roles of fixed demographic variables, and find that results are robust. The census data also allow us to interact joint liability contract structure with demographic characteristics, and again we find little evidence that sample selection within pool of individuals working at

> 5 The General Social Survey (GSS) contains three questions on “trust,” “fairness” and “helping” which purport to measure social capital.  The exact wording is as follows: the trust question, "Generally speaking, would you say that most people can be trusted or that you can't be too careful in dealing with people?", the fairness question, "Do you think most people would try to take advantage of you if they got a chance, or would they try to be fair?", and the helpful question, "Would you say that most of the time people try to be helpful, or that they are mostly just looking out for themselves?"  In cross-country regressions, several studies find that these GSS questions correlate with outcomes of interest.  Knack and Keefer (1997) finds correlations with growth; Kennedy et al. (1998) and Lederman et al. (2002) with crime; Brehm and Rahn (1997) with civic involvement; Fisman and Khanna (1999) with communication infrastructure; and Guiso et al. (2005) with stock market participation.  In experimental economics, Karlan (2005b) finds that positive answers to the GSS questions predict the repayment of loans one year after the survey, and that positive answers to the GSS questions predict trustworthy behavior in a Trust game (conducted shortly after the GSS questions).

> 6 Individuals with savings accounts are more likely to choose the risky project in the dynamic games, but, as noted in the text, fixed effects specifications should control for this effect.

11
**Table 2 Bound Tariff Rates and Effective Rates of Duty**

|t~~~~~~~~~~~~939~||**dut?**|**yer**_00_|
|---|---|---|---|
|Average unweighed tariff (per cent)<br>||||
|Agriculture (ISIC 1)<br>|43<br>|26 (16)|94 (33)|
|Mining (ISIC 2)<br>|70<br>|25 (13)|36 (9)|
|Manufacturing (ISIC 3, includes food processing)<br>|73|36 (10)|52 (41)|
|Whole economy<br>|71|35 (15)|54 (42)|
|Average unweighed tariff by stage of processing (per cent)<br>||||
|Unprocessed<br>|50<br>|25 (16)|74 (40)|
|Semi-processed<br>|75|35 (9)|44 (23)|
|Processed|73|37 (17)|56_(51)_|

- 33 Following reform package contained in the 1993-94 Budget. The auxiliary duty was merged with the basic customs duty in the 1993-94 Budget.

- 34 Effective m.f.n. rate, i.e., actual rates applied where basic rates have been reduced by exempt rates. However, many exempt rates can not be incorporated such as where the exempt rate applies to only a part of the HS six-digit tariff line. The effective rate also excludes specific exemptions.

- **35** Includes only items bound during the Uruguay Round. The bound rates do not include the commitments under the Information Technology Agreement.

- Note: Standard deviation is provided in parentheses. Tariff averages consider only those tariff lines with _ad valorem_ rates. Year beginning I April.

_Source:_ UNCTAD, the World Bank, Government of India, and selected GATT Secretariat estimates.

32
it appears that the listed Indian firms rely on external market and bank financing to a similar degree compared to their counterparts in LLSV countries.

Next, we examine dividend policy and valuations of listed firms in India, and compare the results to those studied by LLSV (2000b, 2002).<sup>30</sup> Following LLSV (2000b, 2002), we use the summary statistical data from their papers to create a “synthetic firm” for each country in their sample, and use our own data on Indian firms to create the synthetic firm for India; we then compare the predicted values based on the LLSV model with the actual values of the synthetic Indian firm to examine the predictive power of the LLSV model. Table 7 explains the details of the approach and presents regression results. First, LLSV (2000b) find that firms in countries with poor protection of outside shareholders tend to have low dividend payout ratios due to severe agency problems. This result is consistent with our findings, but the coefficients on low protection (dummy that equals 1 if the anti-director rights score is less than or equal to 3/6) and interaction between growth in sales and the low protection dummy from our regressions are not statistically significant. Second, LLSV (2002) find that firms in countries with poor protection of outside shareholders tend to have low valuation, proxied by the Tobin’s Q (or lower market-to-book assets ratio). This result is confirmed with our “synthetic firm” approach: We find that both the cash-flow rights (percentage of shares owned by the largest shareholder) and anti-director rights are positively correlated with firm valuations.

We then investigate whether LLSV’s predictions on dividend and valuation apply to India’s synthetic firm. First, India belongs to the high protection group, so that the LLSV model suggests that Indian firms should have high dividend payout: This is the case if we use dividend/sales as the proxy for payout ratio, because the prediction error of India’s synthetic firm (0.11) is smaller than the standard error of the regression residuals (2.16); but in terms of dividend/earnings ratio the

> 30 LLSV (2002) examine Tobin’s Q of 539 firms in 27 wealthy economies and India is excluded.  LLSV (2000) examine dividend policies of over 4,000 companies in 33 countries including India, but with only one Indian firm in the sample.

27
unlicensed financial services in the regression analysis and create one dummy that equals 1 if posts provide financial services through partnerships and 0 if posts provide licensed or unlicensed financial services directly. Second, we identify dummy variables (0/1) if the post office acts as a cash-merchant for (i) remittance service providers or (ii) government payments. Note that the latter two categories are not necessarily mutually exclusive. Appendix 1 includes data on the post bank business models by country.

Table 2 summarizes the number of countries that adopt each business model. Overall, seven countries<sup>10</sup> in our sample of 60 countries have a licensed post bank. In 29 countries, the post offers unlicensed postal savings. Posts have entered a partnership with a financial service provider in the remaining 24 countries. In developing countries, unlicensed postal savings are the most common business model. In contrast, in high-income countries the dominant model involves partnerships with financial service providers. In addition, in many countries, the post offers cash merchant services. In 43 countries (72 percent), the post offers such services on behalf of remittance service providers and in 40 countries (67 percent) the post offers services to facilitate government payments. While the postal service in nearly all high-income countries acts as cash merchants for remittance service providers, it only does so in 61 percent of posts in the developing world (25 countries).

In addition to data on the postal networks’ business models in providing financial services, we also use data on post office access points both relative to the total number of post and financial institutions contact points as well as the proportion of access points per 1,000 inhabitants. We hypothesize that a larger presence of post office branches compared to financial institutions or a denser postal branch network in general increase the convenience of having a post office account. This may in turn influence individuals’ choice of account type in favor of 10 China, France, Gabon, Japan, Kazakhstan, Morocco, Poland.

8
led to higher R&D, patenting, innovation and productivity in the case of European countries. Iacovone et al. (2013) evaluate the effects of Chinese competition for Mexico both on the extensive (firm exit) and intensive margins, obtaining heterogeneous results depending on the size of the firm, as small firms experience losses and in some cases are forced to exit the market, bigger firms exhibit the opposite effects leading to productivity growth.

In this paper we take advantage of a very rich and novel data set regarding ICT use in Mexico in order to shed some light on the relation between ICT use and firm productivity in the case of a developing country, which has been seldom studied. Furthermore, we build upon the ICT-productivity literature and extend it by taking into consideration the strand of literature that analyzes competition as a factor that speeds up the creative destruction process. Thus, we analyze whether facing higher competition pressures can enhance the relation between ICT use and productivity by providing the incentives for firms to either pursue the organizational changes that the adoption of these new technologies requires or simply to use them in a more efficient way.

# **2 Data**

Our data are from Mexico’s National Survey on Information Technologies 2009 and 2013, which is a survey designed by the National Science and Technology Council (CONACYT) and conducted by the National Institute of Statistics and Geography (INEGI). This survey includes detailed firm-level data regarding ICT and some other firm characteristics and it is under constant revision in order to improve the quality of the information obtained.<sup>2</sup> Using ENTIC 2009 and 2013, we were able to match 1,017 firms that appeared in both waves of the survey and using the correspondences between North American Industry Classification System (NAICS) codes, which is the sectoral classification used in ENTIC, and the Harmonyzed System (HS1996) codes, we merged this information with trade data from the World Integrated Trade Statistics (WITS), World Bank. Therefore, we ended up considering only the manufacturing sector and our final sample consists of a balanced panel of 715 firms. Due to the representative random sampling design of the survey, as it is not meant to follow the same firms over time, big firms are more likely to appear in both waves of the survey. Thus, 87% of the firms in our sample are big firms and 40% are older than 27 years in 2012.

In order to measure ICT use, we rely on physical measures that were previously used by other

> 2Even though the first wave of ENTIC was conducted in 2004, it was included as a short module of the Innovation Survey and most of the relevant information for this analysis is not compatible with what we observe in later waves. Additionally, due to the random sampling design of this survey, only 297 of the firms that were surveyed in 2004 can be found in the 2013 wave.

3
Policy Research Working Paper 7693

# **Abstract**

Countries around the world face a retirement crisis brought on by aging populations, declining birthrates, and fiscal shortfalls. As a result, policy makers increasingly seek to understand retirement savings patterns, a crucial component of the safety net for the elderly. Drawing on the 2014 Global Findex database, which provides individual-level data on the use of financial products in more than 140 countries, this paper examines how adults save for old age. It finds that about 25 percent of adults worldwide save for old age, with rates exceeding 35 percent in high-income Organisation for Economic Co-operation and Development economies and the East Asia and Pacific region. On average, men are slightly more likely than women to save for this purpose, but the gender gap is deeper in developing countries. Worldwide, saving for old age is more common among older adults, more educated adults, and adults who own accounts. Adults in countries with English legal origin, and with high savings rates, are also more likely to save for old age. The paper also finds that measures to increase trust in the financial system, such as the safety net/moral hazard index based on deposit insurance, lead to higher rates of saving for old age. Finally, the paper finds little evidence of substitution between pension system provisions and contribution rates with saving for old age.

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 lklapper@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
37

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