rafmacalaba/datause-encoder-data huggingface dataset:
particular the use of enterprise or local level mediation to reduce the number of disputes at the formal resolution stages of arbitration and litigation (Minzner 2011). These efforts have had some effect in reducing the rate of increase since 2008. However, disputes remain at an all-time high with little sign of abatement. In 2010, for example, there were nearly 1.3 million formal labor disputes. National data show that nearly 70% of these disputes were mediated (2010 Labor Dispute Report).

These figures suggest that the new Labor Contract Law has led to a large increase in the propensity of workers to initiate disputes with their employers, either because workers feel more empowered by the new Law or due to disagreements between employers and employees over how to interpret the new Law’s provisions. Unfortunately, it is difficult to distinguish between these different explanations.

Local labor bureaus and court systems have struggled to find the resources to process the large number of complaints and to resolve disputes efficiently. In interviews with the authors in 2009, Shanghai district-level labor bureau officials reported that the local labor bureaus felt understaffed to deal with all of the complaints, and were authorized to recruit staff temporarily from other government bureaus to help deal with the surge in cases. They noted that some of the Law’s provisions were vague and subject to different interpretations, and so local officials frequently appealed to officials in the Ministry of Labor and Social Security in Beijing for guidance, and that this process was time-consuming. The problems were compounded by the onset of the global economic crisis started in the fall of 2008, which led to the firing of 20 million migrant workers (Giles et al., 2013), providing many opportunities for disputes over severance payments or unpaid wages of workers. Labor bureaus also struggled to meet the large rise in cases, a problem exacerbated by a shortage of arbitrators. China had established only 946 arbitration centers by the end of 2010 (Xinhua, 2011), a year when there were over 600,000 arbitrated disputes (Figure 2). The high tide of 20
Policy Research Working Paper 5157

# **Abstract**

Well-functioning institutions matter for economic development. In order to operate effectively, public institutions must also inspire confidence in those they serve. The authors use data from the Gallup World Poll, a unique and very large global household survey, to document a quantitatively large and statistically significant negative correlation between corruption and confidence in public institutions. This suggests an important channel through which corruption can inhibit development by eroding confidence in public institutions. This correlation is robust to the inclusion of a large set of controls for country and respondent-level characteristics, and they show how it can plausibly be interpreted as reflecting at least in part a causal effect from corruption to confidence. The authors also show that individuals with low confidence in institutions exhibit low levels of political participation, show increased tolerance for violent means to achieve political ends, and have a greater desire to “vote with their feet” through emigration.

This paper—a product of the Macroeconomics and Growth Team, Development Research Group—is part of a larger effort in the department to study the causes and consequences of governance for economic development. Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org. The author may be contacted at akraay@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
late 1950s to joining the European Union (EU) in 1985.<sup>10</sup> Figure (3) shows interesting dynamics at the country level. It captures the early integration of Korea into the global economy. In the case of manufacturing, the growth of international trade with respect to domestic trade was 5176.9% or an equivalent tariff reduction of 62.89%. It also shows that the globalization process started later for China, around 1986.<sup>11</sup> But by 2015, China overtook Korea with a 6004.3% growth, or a tariff equivalent reduction of 64.2%, of international trade relative to domestic trade in the manufacturing sector since 1965. While China and Korea show similar globalization dynamics, it is important to take into account that the integration of each of these countries into the world economy had very different implications due to the size of their population and their total production capacity for the world economy, with China becoming one of the largest manufacturing hubs.

In India and Brazil, two large economies in their respective regions, globalization seems to have started late. Significant declines in trade growth are observed in the case of India across all sectors. Brazil’s manufacturing had a positive episode in the 1970s of integration into the world economy, but it reverted and only took off again in the 1990s, getting very close to the world average in 2015. Integration had a poor performance in agriculture in both countries, and services grew rapidly for India in the 2000s, managing to outperform the world average by 2015.<sup>12</sup> Figure (3) shows a unique decline for the US manufacturing sector since 2000. These negative dynamics are in line with the evidence available in the literature. For instance, Autor et al. (2019) study the large-scale labor demand shocks stemming from rising international manufacturing competition during 1990–2014 and its consequences. Among their conclusions, they find that this trade shock significantly reduced employment and earnings of young adult males. Recent research has also found that trade reforms can reduce exports of advanced economies when they reduce the fixed costs of foreign direct investment (FDI) significantly more than trade barriers (Baek and Hayakawa, 2022).

Another worth mentioning case is Spain. The Spanish economy went from autarky at

> 10 Spain requested accession to the EU on 26 July 1977.

> 11Note that 1986 seems to be the year globalization dynamics took off in China. But these dynamics were impulse by previous reforms in the Chinese economy. These reforms started in 1978 in the agricultural sectors, followed in 1984 with reforms in urban areas and industrial sectors. See Prasad (2004) for an overview of the key aspects of developments in China’s macroeconomy and economic structure.

> 12As discussed in the data section, the trade data on services tend to be of lower quality than goods data, but these results are intuitive and a solid based for an analysis for countries like India.

14
**_Index_**

ix

|_WPS#_|<br>_Author_|_Working_<br>_Paper Title_|_Page_|
|---|---|---|---|
|89|Taeho Bark and Jaime de Melo|Export Quota Allocations, Export Earnings, and<br>Market Diversifications|30|
|105|Richard H. Snape|Securing Access to International Markets|38|
|103|James R. Tybout and Taeho Bark|Industrial Portfolio Responses to Macroeconomic Shocks<br>- An Econometric Model for Developing Countries|37|
|144|Jaime de Melo and Sherman Robinson|Product Differentiation and Foreign Trade in CGE<br>Models of Small Economies|50|
|145|Jaime de Melo, Julie Stanton,<br>and David Tarr|Revenue-Raising Taxes: General Equilibrium Evaluation<br>of Alternative Taxation in U.S. Petroleum Industries|50|
|146|Timothy Condon, Vittorio Corbo,<br>and Jaime de Melo|Exchange Rate-Based Disinflation, Wage Rigidity,<br>and Capital Inflows: Tradeoffs for Chile, 1977-81|51|
|174|Ram6n L6pez and Dani Rodrik|Trade Restrictions with Imported Intermediate Inputs:<br>When Does the Trade Balance Improve?|61|
|191|Sebastian Edwards|Openness, Outward Orientation, Trade Liberalization,<br>and Economic Performance in Developing Countries|67|
|197|Fernando Clavijo and Riccardo Faini|Differentiating Cyclical and Long-Term Income<br>Elasticities of Imort Demand|70|
|**Trans**|**port**|p||
|158|Alice Galenson|Labor Redundancy in the Transport Sector|55|
|**Wome**|**n In Development**|||
|129|Paul Collier|Women in Development: Defining the Issues|45|
|130|Matthew Lockwood and Paul Collier|Maternal Education and the Vicious Cycle of High<br>Fertility and Malnutrition: An Analytic Survey|46|
|184|Augusta Molnar and Gotz Schreiber|Women and Forestry: Operational Issues|64|
|200|T. Paul Schultz|Women and Development: Objectives, Frameworks,|72|
|**1988 W**|**orld Development Report Backgroun**|and Policy Interventions<br>**d Papers**||
|30|Bela Balassa|The Adding Up Problem|13|
|31|Bela Belassa|Public Finance and Economic Development|14|
|32|Kenneth Davey|Municipal Development Funds and Intermediaries|14|
|33|John Cuddington|Fiscal Policy in Commodity-Exporting LDCs|15|
|34|Lance Taylor|**Fiscal Issues**in Macroeconomic Stabilization|**15**|
|35|Stephen**Lister**|Improving the Allocation and Management of Public<br>Spending|15|
Tobin’s Q.<sup>17</sup> Since many of the firms in our sample are not publicly traded, we do not have sufficient information to compute firm-level Tobin’s Q ratios. We therefore rely on data from all listed firms in China to compute an industry-level average Tobin’s Q using the value-weighted formula.<sup>18</sup> When firms are financially constrained, an increase in cash flows, which is assumed to convey no additional information about firms’ investment opportunities, would be associated with a rise in investment spending. We therefore expect a positive coefficient for the cash flow variable in this regression model if firms’ investment is influenced by their availability of internal funds. In addition to the sensitivity of investment to cash flows, we also include access to bank loans, trade credit and UCA as indicators of access to external finance. We view this as an informative additional check on the relative severity of financial constraints, to the extent that investment remains relatively more sensitive to internal cash flows for firms with weaker connections to the government when these variables are included in the regression.

Since some _X_ , all F, and lagged sales growth rates are available for only one year, we use the cross sectional estimation method in our base specification. For CF, Tobin’s Q, and sales intensity, we have two years of data, and so we also present fixed effects specifications in models with fewer variables than in the base specification. In those models, we are relying on withinfirm differences to identify the effects of cash flows and Tobin’s Q on investment. Many of our variables have notable outliers, such as investment intensity (and its two variants), sales

> 17 Tobin’s Q ratio is the market value of a firm’s total assets divided the book value of those assets.

> 18 We obtain similar results when using the industry-year median from the same data set of listed firms and after experimenting with various ways to value non-tradable shares.

18
|RF Ecological Corridors Project|Maria Bernadete Ribas Lange|
|---|---|
|RF Ecological Corridors Project|Maria Bernadete Ribas Lange|
|RF Ecological Corridors Project|Maria Bernadete Ribas Lange|
|Reduction of Ozone Project(Montreal Protocol)|Horacio Cristian Terraza|
|Reduction of Ozone Project(Montreal Protocol)|Horacio Cristian Terraza|
|Reduction of Ozone Project(Montreal Protocol)|Horacio Cristian Terraza|
|Reduction of Ozone Project(Montreal Protocol)|Horacio Cristian Terraza|
|Reduction of Ozone Project(Montreal Protocol)|Horacio Cristian Terraza|
|Reduction of Ozone Project(Montreal Protocol)|Horacio Cristian Terraza|
|Reduction of Ozone Project(Montreal Protocol)|Horacio Cristian Terraza|
|Reduction of Ozone Project(Montreal Protocol)|Horacio Cristian Terraza|
|Reduction of Ozone Project(Montreal Protocol)|Horacio Cristian Terraza|
|Water SupplyProject||
|Water SupplyProject||
|Water SupplyProject||
|Agriculture Credit Project(02)||
|HighwayConstruction Project||
|HighwayConstruction Project(02)||
|HighwayConstruction Project(02)||
|HighwayConstruction Project(02)||
|HighwayConstruction Project(02)||
|HighwayConstruction Project(02)||
|HighwayConstruction Project(02)||
|Agricultural Services and Credit Project||
|Agricultural Services and Credit Project||
|Agricultural Services and Credit Project||
|Agricultural Services and Credit Project||
|Agricultural Services and Credit Project||
|Agricultural Services and Credit Project||
|Agricultural Services and Credit Project||
|Agricultural Services and Credit Project||
|Industrial Finance RestructuringProject||
|Industrial Finance RestructuringProject||
|Industrial Finance RestructuringProject||
|Industrial Finance RestructuringProject||
|Industrial Finance RestructuringProject||
|Industrial Finance RestructuringProject||
|Industrial Finance RestructuringProject||
|Public Sector HousingProject||
|Public Sector HousingProject||
|Public Sector HousingProject||
|Public Sector HousingProject||
|Public Sector HousingProject||
|Public Sector Management Technical Assistance Project||
|Public Sector Management Technical Assistance Project||
|Public Sector Management Technical Assistance Project||
|Public Sector Management Technical Assistance Project||
process of formulating the plans is not as structured and transparent as what is advocated by experts. As part of decentralization agendas, many countries are now requiring local governments to establish capital investment planning processes as a tool for good urban governance and management. This is a window of opportunity. Although the methodology described in this paper could be most readily used by cities in developed countries that have established budgeting processes and sophisticated data systems, the basic approach (i.e., inserting climate considerations into local decision‐making processes) could be applied to cities with a range of capacities, even those that do not currently have a structured capital investment planning process in place. The _Climate‐Informed Capital Investment Planning Guidebook_ , forthcoming in 2015, provides step‐by‐step guidance to local government staff on how to adapt the methodology to their specific context and institutional arrangements.

Page | 22
**Table 4C: Maternal Education and Family Time with the Child**

|Enrolled Children|(1)<br>OLS|(2)<br>IV|(3)<br>Biprobit|(4)<br>n|
|---|---|---|---|---|
|Any time in week spent helping/reading<br>with child by any member of the<br>household? (Y/N)|0.23<br>[0.03]a|0.24<br>[0.27]|0.26<br>[0.09]a|3149|
|Time spent helping/reading with child|2.12|4.64||3149|
|(hrs/week)|[0.34]a|[2.79]c|||

_Notes:_ Robust standard errors, clustered at current village level; (a): significant at p<0.01, (b): significant at p<0.05, (c): significant at p<0.1. For discrete variables, we report both the IV coefficient and the Average Treatment on Treated using a biprobit specification. Girl’s school present in mother’s birth village is the excluded variable in the IV and the biprobit. All regression control for full set of indication variables for mother’s age, mother’s birth village _tehsil_ . In addition, Child-level regressions control for a full set of indicator variables for child’s age and child gender.

34
-42-

# ANNEX 1: A NOTE ON FINANCIAL DATA PROBLEMS

The paper's analysis is based on banks' reported balance sheets and financial statements. However, as is recognized in Bulgaria, these data are subject to several flaws which arise from: (i) differences In accounting plans. Banks accounting plans in Bulgaria are different from those in western countries. This raises the issues of classification and interpretation. Presently, in Bulgaria, there are three different accounting plans: one for the National Bank of Bulgaria (NBB); another for the Bulgarian Foreign Trade Bank (BFTB); and another for the Commercial Banks. These differences, no doubt, caused the poor quality of the data.

(ii\ asset and liabilities valuations. Assets and liabilities valuation is another source of problems, as it introduces distortions in bank balance sheets. It is particularly a problem with fixed assets, loans and foreign currency operations. Fixed assets, e.g., real estate, have experienced a surge in prices which is unaccounted for in bank balance sheets; banks are carrying a large proportion of nonperforming loans which are not provisioned for; and foreign currency operations are valued at the official exchange rate while such transactions take place at the more depreciated commercial exchange rate. In addition, banks hold substantial volumes of unsettled assets and liabilities due to delays in the clearing system. These unsettled assets and liabilities have had the consequence of overstating the true size of bank balance sheets.

(iii) macroeconomic distortions. Macroeconomic distortions consist of price, interest rates and exchange rate controls. These controls affect bank balance sheets and financial statements by distorting assets and liabilities' true value.

In cases where data is weak, I avoided comparisons with other countries or refrained from using the data, and in cases where sources of problems were known, I made corrections. Conclusions based on this data should be regarded as preliminary and further verified when more robust data is available.
vi

# **ACKNOWLEDGEMENT**

This paper is a product of an informal collaboration between the World Bank and the Industry and Environment Office of the United Nations Environmental Program on transportrelated environmental issues. The paper draws extensively on various OECD/ECMT publications concerning the experience of industrialized countries with automotive air pollution. The paper has benefitted from detailed comments by Clell Harral, Carl Bartone, Bernard Baratz, Iona Sebastian, and Owaise Saadat (at the World Bank Regional Mission in Nairobi), who was also responsible for arranging initial contacts and meetings with officials at the UNEP secretariat in Nairobi.

Special thanks go to Adnan Amin, Christine Boelcke, H. Croze and V. Vanderweerd at UNEP, Nairobi, and Ann Willcocks at Monitoring and Assessment Research Centre, King's College London for providing access to data and reports on air pollution in developing countries. The references to ECMT are based on information and reports provided by Jack Short. The encouragement and support given by Louis Pouliquen, Jeffrey Gutman, Louis Thompson, Richard Scurfield and Robert Goodland at the World Bank, and Jacqueline Aloisi de Larderel and Utam Dabholkar at UNEP are gratefully acknowledged.

Pamela Cook was responsible for word processing and producing the paper.

This technical paper was prepared by Asif Faiz based on contributions by Kumares Sinha and Aimy Varma to Chapters II, V, IX, and X, and by Michael Walsh to Chapters III, IV, VI, and VII. Asif Faiz:is Highways Adviser in the Infrastructure and Urban Development Department, World Bank; Michael Walsh is an environmental consultant; and Kumares Sinha is Professor and Head of Transportation iand EUrban Engineering and Aimy: Varna, Research Assistant at Purdue University.
lower defection rate in the PD and to a much lower willingness to make an individualistic food choice in the restaurant.<sup>7</sup> Benjamin, Choi and Strickland (2010) extend the priming technology applied in the LeBeouf study to show that the Asian prime also renders Asian-American subjects more patient. In contrast to the LeBoeuf et al. study, in Benjamin et al. the subjects‘ preferences were elicited in an incentive-compatible way, lending further credibility to the notion that Asian-American subjects have multiple identities. LeBeouf _et al_ . also show that the notion of multiple identities is not restricted to ethnic categories; it is possible to prime a ―family-oriented‖ identity, which triggers values related to family obligations, or an ―occupation-oriented‖ identity associated with obligations to one‘s firm. Thus, just as the visual frames illustrated in Figures 1 and 2 shape perception, making an individual‘s caste status public or using a simple ―background questionnaire‖ can render certain identities more salient and induce the subjects to align their behaviour with the values and commitments associated with that identity.

The examples mentioned above suggest that individuals may have multiple preference orderings that can be shaped by the social environment and the prevailing institutions. While the notion that an individual may have multiple preference orderings may sound strange, it is no more unusual than the notion that one and the same picture can represent two different – mutually exclusive – animals, as in Figure 3. Very small changes in the visual environment may have a decisive influence of which animal one can see. If one slightly covers, for example, the rabbit‘s nose in Figure 3, one can see only the duck; if one covers part of the duck‘s bill, one can see only the rabbit. This means that slight changes in the lighting conditions that change the ease with which the rabbit‘s nose or the duck‘s bill can be seen will have a decisive influence on which animal an observer perceives. In the same way, slight changes in the social mindset in which individuals find themselves as a result of priming one or another aspect of an institution may affect the way in which people think about themselves, _i.e_ . they may affect which preference ordering becomes salient in a given situation.

> 7 The prime‘s impact on cooperation behavior could be due to its effect on subjects‘ beliefs about others‘ cooperation or it could have changed preferences. See also footnote 5. Thus, future research should control for beliefs, and subjects should be bear real consequences from their choices in a PD game instead of answering a hypothetical PD question.

11