rafmacalaba/datause-encoder-data huggingface dataset:
The impact of coffee market reforms
            on producer prices and price transmission
This paper evaluates the impact of
            coffee sector reforms during late 1980s and early 1990s on
            coffee growers in the main coffee producing countries.
            Earlier evidence suggests that the reforms increased the
            share of producer prices in the world price of coffee. This
            hypothesis is tested in the paper with the help of
            cointegration analysis, and the results show that in most
            countries the longterm producer price share has indeed
            increased substantially after the liberalization. Moreover,
            the results suggest that the reforms induced a closer
            cointegrating relationship between grower prices and world
            market prices. Finally, estimation of an error-correction
            model reveals that short-run transmission of price signals
            from the world market to domestic producers has improved,
            such that domestic prices adjust faster today to world price
            fluctuations than they did prior to the reforms. However,
            there is some evidence of asymmetries in the way positive
            and negative world price changes are transmitted to domestic markets.
The impact of coffee market reforms
            on producer prices and price transmission
# **THE IMPACT OF COFFEE MARKET REFORMS**

# **ON PRODUCER PRICES AND PRICE TRANSMISSION**

Ekaterina Krivonos<sup>*</sup>

## **Abstract**

This paper evaluates the impact of coffee sector reforms during late 1980s and early 1990s on coffee growers in the main coffee producing countries. Earlier evidence suggests that the reforms increased the share of producer prices in the world price of coffee. This hypothesis is tested in the paper with the help of cointegration analysis, and the results show that in most countries the longterm producer price share has indeed increased substantially after the liberalization. Moreover, the results suggest that the reforms induced a closer cointegrating relationship between grower prices and world market prices. Finally, estimation of an error-correction model reveals that short-run transmission of price signals from the world market to domestic producers has improved, such that domestic prices adjust faster today to world price fluctuations than they did prior to the reforms. However, there is some evidence of asymmetries in the way positive and negative world price changes are transmitted to domestic markets.

## World Bank Policy Research Working Paper 3358, July 2004

_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 view of the World Bank, its Executive Directors, or the countries they represent. Policy Research Working Papers are available online at http://econ.worldbank.org._

* University of Maryland and World Bank. Email: ekrivonos@arec.umd.edu.

The author is indebted to Marcelo Olarreaga for valuable discussions and comments and would like to thank John Baffes and Raimundo Soto for suggestions to the earlier drafts.
Kenyan exports of Nile perch : the
            impact of food safety standards on an export-oriented supply chain
Over the past decade, exports of fish
            and fishery products from developing countries have
            increased rapidly. However, one of the major challenges
            facing developing countries in seeking to maintain and
            expand their share of global markets is stricter food safety
            requirements in industrialized countries. Kenyan exports of
            Nile perch to the European Union provide a notable example
            of efforts to comply with such requirements, overlaid with
            the necessity to overcome restrictions on trade relating to
            immediate food safety concerns. Although food safety
            requirements were evolving in their major markets, most
            notably the European Union, most Kenyan exporters had made
            little attempts to upgrade their hygiene standards.
            Likewise, the legislative framework of food safety controls
            and facilities at landing sites remained largely unchanged.
            Both exporters and the Kenyan government were forced to take
            action when a series of restrictions were applied to exports
            by the European Union over the period 1997 to 2000.
            Processors responded by upgrading their hygiene controls,
            although a number of facilities closed, reflecting
            significant costs of compliance within the context of excess
            capacity in the sector. Remaining facilities upgraded their
            hygiene controls and made efforts to diversify their export
            base away from the European. Legislation and control
            mechanisms were also enhanced. Hygiene facilities at landing
            beaches were improved, but remain the major area of
            weakness. The Kenyan case illustrates the significant impact
            that stricter food safety requirements can have on
            export-oriented supply chains. It also demonstrates how such
            requirements can exacerbate existing pressures for
            restructuring and reform, while prevailing supply and
            capacity issues constrain the manner in which the supply
            chain is able to respond. In Kenya most of the concerted
            effort to comply with these requirements was stimulated by
            the sudden loss of market access in very much a crisis
            management mode of operation, illustrating the importance of
            responding to emerging food safety requirements in a
            proactive and effective manner.
A flexible modeling framework to
            estimate interregional trade patterns and input-output accounts
This study implements and tests a
            mathematical programming model to estimate interregional,
            interindustry transaction flows in a national system of
            economic regions based on an interregional accounting
            framework and initial information of interregional
            shipments. A national input-output (IO) table, regional data
            on gross output, value-added, exports, imports and final
            demand at sector level are used as inputs to generate an
            interregional IO account that reconciles regional economic
            statistics and interregional transaction data. The model is
            tested using data from a multi-regional global input-output
            database and shows remarkable capacity to discover true
            interregional trade patterns from highly distorted initial estimates.
Compensatory education for
            disadvantaged Mexican students : an impact evaluation using
            propensity score matching
The authors use propensity score
            matching to evaluate the effectiveness of CONAFE, a
            compensatory education program in Mexico, in improving
            student test scores and lowering repetition and failure
            rates. They find that CONAFE is most effective in improving
            primary school math learning and secondary school Spanish
            learning. Secondary education delivered by way of television
            to remote communities and bilingual education for indigenous
            students are both shown to improve student achievement.
            CONAFE also lowers primary school repetition and failure
            rates. The authors conclude that this compensatory education
            program can effectively improve short-term learning results
            for disadvantaged students, but that improvement varies by
            the subject of instruction and the demographics of students taught.
A duration analysis of CONALEP
            (Mexico's National Technical Professional School)
Mexico's National Technical
            Professional School (Colegio Nacional de Educaci�n
            Profesional T�cnica, CONALEP) is the largest technical
            education system in the country. CONALEP serves low-income
            students at the upper-secondary school level in Mexico.
            Using graduate tracer surveys from CONALEP, the author
            analyzes the impact of modular courses and reform programs
            implemented by CONALEP in 1991-92 on CONALEP graduates'
            labor market outcomes. Results indicate that graduates from
            the pre-reform program had to search longer for a job
            compared with those of the post-reform program. Graduates
            from the post-reform program have 45 percent higher
            probability of finding a job than those from the pre-reform
            program. However, the pre-reform program cohorts earned
            higher hourly wages than those from the post-reform program.
The regulatory and supervisory
            framework for fixed income markets in Europe
look at the development and regulation
            of fixed income securities markets in Europe. Fixed income
            securities markets in Europe have historically been
            characterized by a number of national markets that were
            interconnected by way of foreign exchange markets. They are
            presently undergoing major changes in size, infrastructure,
            and regulation. The authors describe the current state of
            the ongoing European regulatory and supervisory reform and
            the main drivers behind it. They conclude that European
            fixed income securities market regulation and infrastructure
            are not (yet) homogeneous. In some countries fixed income
            market regulation has been developed after intense political
            reflections on ways and means of promoting safe and
            efficient capital markets. In other countries, fixed income
            market regulation is a product of learning-by-doing (such as
            ad hoc reflections based on negative market experiences and
            financial scandals). To illustrate the heterogeneity in the
            European fixed income markets, the authors include two
            examples: France as an example of a country from the euro
            area, and Denmark as an example of a country outside the
            euro area.
Poverty in the Brazilian Amazon: an
            assessment of poverty focused on the State of Para
The states in the Brazilian Amazon have
            made progress in reducing poverty and improving social
            indicators in the last decade. Despite this progress, the
            poverty rate in the Amazon is among the highest in Brazil.
            As of 2000, rural poverty is the greatest challenge. In
            Par?, not only is the headcount poverty rate of 58.4 percent
            in rural areas more than 55 percent higher than headcount
            poverty in urban areas, but also poverty is much deeper in
            rural areas. The fall in infant mortality and adult
            illiteracy corroborate the improvement in measured income
            poverty. Census data from 2000 and 1991 reveal that more
            people left Par? than came to live in the state during the
            1970s, the opposite of the 1980s. In 2000, the Gini
            coefficient for Par?, as in the Amazon as a whole, was 0.60.
            The poverty profile reveals that indigenous peoples
            experience a higher poverty incidence than other groups.
            Census 2000 data reveal that living in rural areas in Par?
            does not by itself affect the probability of being poor.
            Individual and household characteristics are more important
            than geographical location. The largest statistical
            differences in poverty reduction between rural and urban
            areas are found in the effect of education, sector of
            employment, gender, and family size. PNAD data from 2001
            reveal that living in urban areas in Par? does not by itself
            affect the probability of falling below the poverty line in
            urban areas in Brazil. The strongest poverty correlates are
            education, experience, race, rural location, gender, and
            labor market association.
Health care decisions as a family
            matter - intra-household education externalities and the
            utilization of health services
The author is concerned with the role of
            education as a determinant of health care choices. His
            central premise is that utilization of health services is
            determined not solely by an individual's own education,
            but rather by a notion of effective education, which
            incorporates the educational attainment of other household
            members. The author sets out a general framework for
            representing intra-household education externalities, and
            proposes a number of specific hypotheses concerning the way
            in which the education of different household members
            affects health care choices. He tests these hypotheses on
            data from Mozambique, focusing on maternity services and
            child immunizations. The author draws five major conclusions
            from the analysis. First, while maternal education seems to
            be the education variable of primary importance for the
            health care choices under consideration, the education of
            other household members has a significant and sometimes
            large effect. Second, his analysis suggests that while the
            education of the person (non-spouse) in the household with
            the highest-level education is important, the level of
            education of additional household members does not have an
            impact on health care choices. Third, the data provide no
            evidence of a gender difference in education externalities.
            Fourth, the author examines the merits of two alternative
            representations of the education externality, but is unable
            to conclude unambiguously in favor of one specification over
            the other. Finally, although the analysis highlights the
            importance of both education and a number of other
            explanatory variables in understanding health care choices,
            spatial fixed effects remain highly significant.
Can the unsophisticated market
            provide discipline
The authors question the widespread
            belief that market discipline on banks cannot be effective
            in less developed financial environments.  There is no
            systematic tendency for low-income countries to lack the
            prerequisites for market discipline. Offsetting factors to
            the weaker market and formal information infrastructures are
            (1) the less complex character of banking business in
            low-income countries; (2) the growing internationalization
            of these markets through the presence of foreign banks, and
            through international trading of the debt and equity of
            locally-controlled non-government banks; and (3) the smaller
            size of the business and financial community. However,
            continuing dominance by public sector banks in some
            countries limits the likely development of market
            monitoring, which is clearly a cause for concern, given the
            disappointing record of governments around the world as
            monitors of their self-owned banks.  Countries should build
            on this potential for market discipline by limiting the role
            of explicit deposit guarantees, reducing state ownership of
            banks where it is prevalent, and not putting all their eggs
            in the supervisory basket. Greater disclosure, for example,
            of how risk taking is rewarded and how rating agencies earn
            their fees would support the development of better market
            monitoring. Enhancing market discipline (pillar three) is
            much more likely to be of use in most developing countries
            than addressing the refinements of the risk-weighting system
            of Basel II's first pillar.
Can the unsophisticated market
            provide discipline
WPS 3364

# **CAN THE UNSOPHISTICATED MARKET PROVIDE DISCIPLINE?**

**Gerard Caprio and Patrick Honohan**

## **The World Bank**

### World Bank Policy Research Working Paper 3364, August 2004

_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 view of the World Bank, its Executive Directors, or the countries they represent. Policy Research Working Papers are available online at http://econ.worldbank.org._ Paper prepared for the BIS-Chicago Fed Conference on Market Discipline. This paper draws on data from a wider effort to assess bank regulatory issues; the cooperation of Jim Barth, Maria Carkovic, Cindy Lee, Ross Levine, Ying Lin and Guillermo Noguera are acknowledged.
Using rapid city surveys to inform
            municipal social policy : an application in Cali, Colombia
Many developing countries assign local
            governments increasing responsibilities in fighting poverty.
            This requires local social policy to go beyond the execution
            of centrally designed and funded education and health
            programs. Hence, local governments and their partners have
            both an opportunity and a need to analyze key local
            bottlenecks for poverty reduction and social development.
            Drawing on an example from Cali, Colombia, The author
            describes a tool for such policy formulation at the local
            level-a rapid city household survey. Although the survey
            uses pre-coded and closed- ended questions, it is contextual
            in the sense that it is tailor-made to social and economic
            conditions in Cali. The survey places particular emphasis on
            collecting key quantitative information, such as household
            welfare and service access, as well as qualitative
            information, such as service evaluations and population
            priorities. Combining the quantitative and qualitative data
            allows, for example, the mapping of population budget
            priorities or service satisfaction levels by welfare group.
            Rapid city household surveys could provide an important tool
            for the development of local social policies.
Is debt replacing equity in
            regulated privatized infrastructure in developing countries
The main purpose of this paper is to
            describe the evolution of the financing structure of
            regulated privatized utilities and transport companies. To
            do so, the authors rely on a sample of 121 utilities
            distributed over 16 countries, and 23 transport
            infrastructure operators and 23 transport services operators
            distributed over 23 countries. They show that leverage rates
            vary significantly across sectors, with the highest rates
            observed in transport and the lowest in water. Moreover, the
            authors also show that the 1997 Asia crisis led operators to
            adjust their financial structure differently in different
            regions. Overall, the evidence they present shows that debt
            is replacing equity in financing the investment needs of
            utilities and transport services in developing countries.
            These results raise some questions as to whether the
            regulator's mandate should be expanded to monitor the
            financial structure of companies and as to whether the
            international community should make a stronger commitment to
            more transparent regulatory accounting systems.
Property rights institutions and investment
This paper examines the channels through
            which alternative property rights institutions affect
            investment. These institutions are defined by a
            society's enforced laws, regulations, governance
            mechanisms and norms concerning the use of resources. A
            transaction cost framework is used to analyze the incentive
            impact of various types of property rights, liability rules,
            and rules regarding contracts. This framework is used to
            discuss the legal and cultural conditions necessary for the
            formation of productivity-enhancing organizations and the
            proper role of government in providing the infrastructure
            for private investment. A brief section examines the role of
            cultural and religious norms in determining the economic
            effectiveness of legal systems, with a focus on Islamic
            countries. The final section evaluates empirical approaches
            used to discover the specific ways property rights
            structures affect investment and growth.
The International Finance
            Corporation's MBA survey: how developing country firms
            rate local business school training
Graduate education in business
            administration was developed in the U.S. around the turn of
            the twentieth century. MBA and similar graduate-level
            business programs took hold more slowly in other countries,
            but the number of such programs expanded more rapidly from
            the 1960s onward. In an effort to determine what firms from
            these countries require from business school graduates, the
            IFC used its extensive contacts with these firms to conduct
            a survey of the quality of business education in these
            countries. The survey results imply that the strengths and
            weaknesses of developing and transition country MBAs seem to
            overlap with those of MBAs from the U.S.: managers in the
            U.S. and in the developing countries find that the technical
            and analytical skills of MBAs are well developed while the
            practical training/skills and communication/language skills
            of MBAs are significantly lacking. On the whole, only the
            African and Middle Eastern firms were significantly
            dissatisfied with the quality of local MBA graduates. The
            survey results show that MBAs worldwide are not fully
            satisfying the needs of firms. Each of the other regions of
            the world has its own particular weaknesses, while at the
            same time some common weaknesses (such as work experience
            and communication skills) stand out. These results show that
            a cookie-cutter approach to training MBAs cannot work.
            Rather, MBA programs have to be tailored to suit the needs
            of the local business community while also teaching common
            business fundamentals.