rafmacalaba/datause-encoder-data huggingface dataset:
of cattle herding vis-à-vis returns on the safe asset, its riskiness and other individual constraints and factors.

If both constraints are binding then current consumption will exactly be equal to the value of total liquid wealth or cash-on-hand. As a result, no asset will be carried over to the next period and in fact the household would have been willing to borrow if there existed a credit market for consumption purposes. There are also other behavioral regimes depending on which constraint is binding. If the constraint on the safe asset is binding then it will result in under investment in cattle and the farm household would have increased both current consumption and investment in cattle if it were allowed to hold a short position in the safe asset.

As was pointed out, this study focuses on the link between total wealth and portfolio choice of farmers for a given distribution of income and returns on the risky asset. Accordingly, we proceed to derive the relationship among these variables. In this respect, it is important to investigate how farmers will respond to negative crop income shocks. An intuition for this question can be derived by undertaking comparative statistics on the ...rst-order conditions. It should, however, be noted from the outset that the analyses given in the following subsections are valid only for an interior solution in which the non-negativity constraints are not binding.

# 2.1 Change in Liquid Wealth

Empirical studies from developing countries (Dercon, 1998; Morduch, 1993) indicate that relatively poor households specialize in low return, low risk activities as compared to relatively wealthy households. The model in the previous section, however, cannot be solved analytically and the policy functions depend on the assumptions on the degree of convexity of the marginal utility function, the correlation between the income process and the returns on the risky investment and so on. Here we derive conditions that determine the relationship between initial wealth and investment in the risky asset.

By implicit di¤erentiation of the ...rst-order conditions, the wealth derivative of investment in cattle becomes where It is easy to see that H > 0 if the second-order su¢ cient condition of the optimiza8
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Perez, S. E., Llopis, A. S. and Llopis, J. A (2004) “The Determinants of Survival of Spanish Manufacturing Firms”, _Review of Industrial Organization,_ 25: 251–273.

Rosenbaum, D. and F. Lamort (1992) “Entry, Barriers, Exit, and Sunk Costs: An Analysis”. _Applied Economics_ , 24 (3):297-304.

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38
1S -

-

correlation is also significant (ra -0.400). 13/ Appendix Table 1 provides details on changes in devleoping coutnry shares for labor intensive products over 1965 to 1985.

IV. Developing Countries' Exports of Labor Intensive Products While there is considerable variation in developed countries' imports of the NBER (1965) labor intensive manufactures, Table 3 examines the importance of individual developing countries as sources of supply for these goods. The table identifies the 20 most important developing country exporters of NBER labor intensive manufactures in terms of 1986 exports and also provides statistics on the value of this exchange for selected years back to 1965. To indicate the evolving importance of these products in total trade, the table shows their share in all nonfuel exports of each country over 1965-1986. In addition, the share of textiles and clothing products within the labor intensive group is given to illustrate how the importance of these products changed during the period.

Table 3 shows that labor intensive products have been growing rapidly in importance for practically all of the 20 developing countries listed, yet the 1986 trade in these products (measured in value terms) remains concentrated in a relatively small number of exporters. Taiwan alone accounted for over 22 per cent of the value of shipments to developed countries in 1986 while five exporters (Rep. of Korea, Singapore, China, Hong Kong, and Taiwan, China) originated about 62 per cent of this trade. For each of these five countries, labor intensive manufactures rose in importance over 1965-1986 and now account for between 62 (China) to 94 per cent (Hong Kong) of 13/ The correlation between the value added index and changes in developing countries' shares in other industrial countries (r = -0.369) is weaker, but takes the appropriate negative sign and is statistically significant.
# **ADDITIONAL WORKS CITED**

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Donohoe, M. 2003. “Causes and health consequences of environmental degradation and social injustice” Social Science and Medicine 56 (3):573-587.

Eliasoph, Nina. 1998. Avoiding Politics: How Americans Produce Apathy in Everyday Life. Cambridge, UK: Cambridge University Press.

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Gecas, Victor and Peter Burke. 1995. Cook, Karen, Gary Alan Fine, and James House eds.

72
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**Table 5. Correlation coefficients between percentage poor and incidence of fever (and fever without a** cough) in children under three in subregion

||_Anyfe_|_ver_|_Feverwitho_|_uta cough_|
|---|---|---|---|---|
||_Correlation_<br>_coefficient_|_P-value_|_Correlation_<br>_coefficient_|_P-value_|
|WesternandCentralAfrica|.035|.760|.217|.052*|
|EasternandSouthernAfrica|.218|.059*|.215|.062*|
|ExcludingMadagascar|.300|.012**|.345|.003"*|

**(*) Significantly different from zero at 5(10) percent level. _Source:_ Author's calculations from pooled and weighted DHS data.

> The bivariate relationship between fever and poverty is insignificant in Western

> and Central Africa and is significant at the 10 percent level in Eastern and Southern Africa, but small in magnitude. Since Madagascar stands out on the map as an area with a low level of fever but a high level of poverty, it was temporarily removed from the sample on the theory that it may be capturing a different relationship than on the

> continent. When it is removed the magnitude of the correlation increases, and the

> relationship becomes significant at the 5 percent level. Of course, this bivariate relationship is picking up many confounding factors. For example, in a simple regression that includes the average years of schooling of the mothers in the sample the association

_12_
**Table 6. Health Attainment: Output-Efficiency scores by regions across the world**

**- Single Input-Single Output**

||AFR|EAP|ECA|LAC|MNA|SAS|
|---|---|---|---|---|---|---|
|LifeExpectancy at birth|.63|.87|.91|.92|.90|.83|
|Immunization DPT|.62|.83|.95|.87|.90|.75|
|Immunization Measles|.63|.83|.95|.91|.90|.71|
|DALE|.56|.83|.90|.90|.86|.79|

# **III.3.  Multiple Inputs and Multiple Outputs**

Both education and health attainment are not solely determined by public spending. Other inputs, such as private spending also affect the output indicators. For health, the World Bank WDI database reports a comparable statistic across countries. Unfortunately, a comprehensive database of this variable does not exist for education: For the education production technology we have multiple indicators of educational attainment, and three inputs (public spending, teachers per pupil, and adult literacy rate). In health, besides public spending, two other inputs were included: private spending and the education level of adults. The analysis was limited to include up to three outputs Too many output indicators will complicate the analysis, biasing efficiency scores towards one, increasing the variance of the estimators, and reducing their speed of convergence to the true efficiency estimators (Simar and Wilson, 2000; Groskopff, 1996) In education, the selected input-output combinations produce ranking that are somewhat similar: the average rank correlation coefficient is .53. The frequency distribution of the efficiency estimators is similar in all the models, and as the model shifts from a basic two-input two-output model to a more complex three-input three–output model, the frequency distribution shifts to the right, that is, more concentrated around more efficient results.

The multi-input output model results (Table 7) in general confirm the results of Table 1. Some new countries that appear as efficient are Bangladesh, Congo and Argentina. In the case of Bangladesh and Congo, this is the result of considering literacy of adults as a factor of production, that in these countries is low, and hence, appearing as very efficient. Congo has also extremely low ratio of teachers per student, the other factor of production, reinforcing the bias towards the efficient score. Within the least efficient countries, the models point at Zimbabwe, Lesotho, Botswana, Malaysia, and Saudi Arabia as the singleinput models. In addition, Costa Rica and Swaziland appear as input inefficient.

20
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is responsible for 511,000 deaths every year caused by indoor smoke (WHO, 2006a). In the comparative risk assessment (Lim et al., 2012), HAP is the second most important risk factor among those examined for women worldwide. In India alone, approximately 1.04 million premature deaths and 31.4 million disability-adjusted life years (DALYs) are attributed to HAP resulting from solid cooking fuels (Balakrishnan et al., 2014). By 2030, IEA (2010) projects that premature deaths associated with burning biomass indoor will exceed those due to HIV/AIDS.

Three recent meta-analyses (Kurmi et al., 2010; Hu et al., 2010; Po et al., 2011) find that exposure to smoke from burning biomass fuels for cooking and/or heating is associated with increased risk of COPD. There are also evidence of impacts from exposure to HAP such as child cognitive function, low birth weight, cervical cancer, adverse pregnancy outcomes, asthma, and tuberculosis (Velema et al., 2002; Pokhrel et al., 2010; Pope et al., 2010; Hosgood III et al., 2011; Dix-Cooper et al., 2012; Sumpter and Chandramohan, 2013; Trevor et al., 2013; Wong et al, 2013). For example, Epstein et al. (2013) finds that compared to infants born in homes using LPG, those born in biomass and coal dependent households are more likely to be born low birth weight. The study also finds that mean birth weights of infants born in homes using solid fuels (biomass and coal) and kerosene are significantly lower than mean birth weights in households using LPG. Adetona et al. (2013) find that women in Trujillo, Peru who cooked exclusively with fuelwood or kerosene had higher exposure to PAH compare to women who cooked with LPG or coal briquette. A review study by Abdullahi (2013) finds that Chinese cooking lead to a much greater contribution of PAHs to particulate organic matter relative to western-style fast food cooking. Studies in India and Nepal reveal that non-smoking women exposed to biomass smoke have death rates from chronic respiratory disease comparable to those of heavy smokers who are males (Modi et al., 2005). Based on household survey, Lakshmi et al. (2013) find that biomass and kerosene fuels are associated with stillbirth among married women aged 15-49, representing about 12% of stillbirths in India. Parikh (2011) finds substantial physical burden and health impacts on women due to traditional cooking fuels in Indian households. Silwal and McKay (2013) find that cooking with solid fuels worsens lung capacity in Indonesia. However, Wickramasinghe (2011) finds that women in Sri Lanka were more concern about the collection, transportation and processing of biomass fuels than the direct impact of burning biomass fuels.

20
WPS3509

# **Dynamic Cities and Creative Clusters**<sup>*****</sup>

## Weiping Wu

Associate Professor Urban Studies and Geography School of World Studies Virginia Commonwealth University 312 N. Shafer Street Richmond, VA 23284-2021, USA Tel: 01 (804) 827-3413 Fax: 01 (804) 828-0127

**email:  wwu@vcu.edu**

## World Bank Policy Research Working Paper 3509, February 2005

_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._

> * This paper was prepared for the East Asia Prospect Study being conducted in DECRG at the World Bank.  The author thanks Shahid Yusuf, Anjum Altaf, and Kaoru Nabeshima for their suggestions and guidance.  The author also is grateful for the helpful comments provided by the participants of the workshop organized for this study held in Bangkok, February 22-23, 2004.
|1|.<br>West Africa ................................................................................................................................. 17|
|---|---|
|2|.<br>Maghreb ...................................................................................................................................... 18|
|C.|Investment climate: What encourages informal firms to formalize? .............................................. 19|
|D.|Investment climate: What helps informal economic actors ? ......................................................... 20|
|1|.<br>Business services ........................................................................................................................ 20|
|2|.<br>Skills training .............................................................................................................................. 21|
|**VI.** **R**|**ecent studies by region: Middle income countries ....................................................................... 22**|
|A.|LAC: multi-country study ............................................................................................................... 22|
|B.|MNA ............................................................................................................................................... 22|
|1|.<br>Privilege ...................................................................................................................................... 22|
|2|.<br>Egypt ........................................................................................................................................... 23|
|C.|South Asia ....................................................................................................................................... 24|
|1|.<br>India ............................................................................................................................................ 24|
|2|.<br>Pakistan ....................................................................................................................................... 24|
|**VII.**|**Recent studies by region: Low income countries ........................................................................ 25**|
|A.|Southern and Eastern Africa ........................................................................................................... 25|
|B.|West Africa ..................................................................................................................................... 26|
|C.|Household enterprises ..................................................................................................................... 27|

# **VIII.  Conclusion: Recommendations for a productive policy regarding the informal sector .......... 27**

3
# **VI. So, Is Africa at a turning point?**

Based on the records, the verdict is guarded. There is indeed an acceleration of growth in Sub-Saharan Africa, but its sustainability is fragile. African countries in general are increasingly able to avoid mistakes and economic collapses, but increasing and sustaining growth are a difficult challenge. In the short to medium term, much depends on the continuation of favorable terms of trade, aid, and debt relief, as well as good policy. In the medium to long term, it is essential to raise the economic fundamentals, which are still lagging. Particularly needed are higher exports, more private sector growth, greater productivity of investment, higher foreign investment and remittances from migrant workers, greater regional efforts at tackling the infrastructure gaps, and improved agriculture. These economic fundamentals can be raised through continuing reforms and improved governance. In the long term, there is no substitute for improving human development and sharing the benefits of growth.

Predictions of Africa’s imminent recovery or demise have proved wrong on numerous occasions in the past 40 years. Some of its economies have been badly managed and have declined, whereas others have prospered. But the energy, imagination, and entrepreneurship of its people have overcome both limited opportunities and bad policies to place the region at a position in this new century where better governments and better policies can make a difference. Shared growth can become a reality in Africa.

# **References**

- AfDB and OECD (African Development Bank and Organisation for Economic Cooperation and Development). 2007. _African Economic Outlook_ . Paris: OECD.

- AFRCE (Office of the Chief Economist, Africa Region). Various years. “Biannual Economic Briefs.” World Bank, Washington, DC.

- Africa Partnership Forum. 2006a “Progress Report: Agriculture.”  Moscow.———. 2006b. “Progress Report: Infrastructure.” Moscow.

- Andriamihaja, Noro and Givanni Vecchi. 2008. “Evaluation of the Welfare Impact of Higher Energy Prices in Madgascar.” In _Africa at a Turning Point? Growth, Aid, and External Shocks,_ ed. Delfin S. Go and John Page. Africa Development Essays Series, The World Bank.  (forthcoming).

- Arbache, Jorge Saba, and John Page. 2008. “The Long-Term Pattern of Growth in SubSaharan Africa.” In _Africa at a Turning Point? Growth, Aid, and External Shocks,_ ed. Delfin S. Go and John Page. Africa Development Essays Series, The World

50
pro-competitive economic gains from the transition to democracy in Chile could be due to the fact that connected firms were able to anticipate the regime change, having a full 17 months to prepare for it.

Last but not least, our paper contributes to the literature on the impact of democracy on economic performance. The erosion of the premium on connections to former dictator Suharto is consistent with the hypothesis that democratization reduces privileges bestowed on politically connected incumbent firms. The limited pro-competitive impact of his fall suggest that democratization can help curb state capture but is not by itself sufficient to sustain competitive markets.

The rest of this paper is organized as follows. Section 2 provides background on the Indonesian context. Section 3 discusses the data sources, including the identification of political connections. Section 4 examines the impact of political turnover on firms’ market share, including taking advantage of the district-time variation in the replacement of Suharto-appointed mayors. Section 5 assesses the procompetitive impacts of Suharto’s fall across manufacturing industries. Section 6 concludes.

# **2 Country Context**

# **2.1 The Suharto Era**

President Mohamed Suharto’s (Soeharto) New Order regime, which began in the late 1960s, was a quintessential example of crony capitalism (Haber, 2002). Suharto, his children, and his close confidantes controlled the country, maintaining intimate state–business relationships with military officers, ethnic Chinese businessmen, and a few indigenous (pribumi) Indonesian businessmen. Many former military officers were appointed as ministers, high-level bureaucrats, and directors of state-owned companies. In exchange for political support and kickbacks, loyal businessmen received privileges and protection from the government.

The privileges were manifold. They included (a) licensing arrangements providing monopoly rents in importing, distribution, exploitation of natural resources, and other areas; (b) privileged access to inputs, including finance and land; (c) tax breaks and subsidies; (d) privileged treatment in public procurement; (e) designation as mandatory partners in foreign joint ventures; and (f) price regulation that resulted in supra-normal profits (McLeod, 2000).

Many of these favors were extended to specific firms, rather than entire industries. Using the Indonesian manufacturing survey, the same data set we use in this study, Mobarak and Purbasari (2006a) show that politically connected firms were more likely to receive an import license than their competitors, 5