rafmacalaba/datause-encoder-data huggingface dataset:
_Table 1: Main empirical findings from studies on ICT adoption and economic growth_

|**Growth**|**Main conclusions**|**Sample**|**Time coverage**|
|---|---|---|---|
|Dedrick et al. (2003)|Positive effect of ICT adoption on growth in the USA but<br>a mixed effects among developing countries.|Global|1986-2002|
|Draca et al. (2007)|The positive impact of ICT on USA growth was evident<br>after ICT represented a significant share of the capital.|USA,<br>Europe|1986-2006|
|Niebel (2018)|Positive relationship between ICT and GDP growth from<br>data of 59 countries from 1995 to 2010|Global|1995-2010|
|Stanley et al. (2018)|Positive impacts of adoption of mobile technologies and<br>landline on economic growth.|Global|1987-2017|
|Toader et al. (2018)|An increase of 1 percent in fixed broadband and mobile<br>phone subscriptions increases GDP per capita by 0.08<br>percent and 0.4 percent, respectively.|EU|2000-2017|
|Bertschek et al. (2015)|Telecommunications and broadband deployment have a<br>significant positive impact on economic growth and<br>productivity.|Global|1992-2015|
|Choi and Yi (2009)|Positive effects of Internet adoption and economic growth<br>based on data of 207 countries from 1991 to 2000.|Global|1991-2000|
|Maurseth (2018)|The greatest benefits of ICT adoption could lie a decade or<br>more in the past.|Global|1990-2000|
|Castaldo et al. (2018)|Positive correlation between fixed broadband and<br>economic growth in 23 OECD countries between 1996<br>and 2010.|OECD|1996-2010|
|Arvin and Pradhan<br>(2014)|Causal positive relationship between broadband adoption<br>and GDP growth using data of 19 countries between 1998<br>and 2011.|G-20|1998-2011|
|Gruber et al. (2014)|Broadband adoption has had a significant positive effect<br>on GDP growth in 27 countries part of the European<br>Union between 2005 and 2011.|27 EU<br>member<br>countries|2005-2011|
|Edquist et al. (2018)|A 10 percent increase in MBB adoption causes a 0.8<br>percent increase in GDP.|Global|2002-2014|
|Bahia et. al (2019)|A 10 percent increase in the adoption of (any) mobile<br>technology increases GDP between 0.5 and 1.2 percent.|Global|2000-2017|
|Haftu et al. (2019)|The expansion of mobile phone subscribers in SSA had a<br>significant positive effect on the region’s per capita income<br>between 2006 and 2015.|40 SSA<br>countries|2006-2015|
|Pradhan et al. (2019)|Co-development of innovation, diffusion, and ICT<br>penetration fosters economic growth in the long run, in<br>Europe|Europe|1961-2016|

9
Financing constraints affect the entry of new enterprises and conditional on entry, impede the ability of young firms to invest in new opportunities and grow. Paulson and Townsend (2004) show that greater financing constraints also reduce the likelihood of starting a business in Thailand. More broadly, in a cross-country study of 35 European countries Klapper, Laeven, and Rajan (2006) find that entry is higher in more financially dependent industries in countries with greater levels of financial development.

Startups in advanced economies also face financing constraints. Existing literature has shown a strong correlation between entrepreneurial wealth and the propensity to start or keep a business (Evans and Jovanovic, 1989; Evans and Leighton, 1989; Holtz-Eakin et al., 1993). Access to credit has also been shown to dramatically increase chances of survival, revenues and job creation in the US (Fracassi, Garmaise, Kogan, and Natividad, 2016). Guiso et al (2004) show that even in a well-developed financial market like Italy, regions with deeper capital markets promote the entry and growth of new firms and increase propensity to start new businesses.

More recently, there have been a number of studies studying the impact of the 2008 Great Recession on entrepreneurs. Zarutskie and Yang (2016) find that financing constraints played a key role in the diminished performance of young firms in the US during the 2008 Great Recession. Other studies establish a close relationship between housing collateral and entrepreneurial activity in the U.S.

> (2010)), absence of an adequate legal framework to support the VC industry (e.g. Cumming, Schmidt, and Walz (2010)).

30
_16_ Table 8—Husband’s Influence delivery of the business and identified themselves as the owner and manager of the business, with primary decision-making power. Crossovers were more likely than noncrossovers to identify themselves as just administrators in the business, with 26 percent of crossovers reporting that they only administered, compared with 5 percent of noncrossovers, with crossover firms using employees and husbands for production and service delivery.

The business histories from the qualitative research provide some illustrations of the ways in which husbands may facilitate women entering and operating in male-dominated sectors. In the crossover businesses, husbands provided various combinations of the idea for the business, start-up capital or assets, trade-specific skills, market connections, and co-management.

The story from one of the crossover women in Bahir Dar, whose business supplies construction materials, provides a good illustration of a husband playing an important supporting role. The female entrepreneur had learned about the construction industry while working with her brother in the family business before she was married. Her husband owned a general mechanics shop and provided his wife with start-up capital for her business in the form of a loan. Because he operated a business in a related industry, he was also able to help her with connections to input suppliers. As the entrepreneur described her experience, the capital and encouragement from her husband were instrumental to her operating this business, but she maintained ownership.

Other entrepreneurs operating crossover businesses described their husbands as playing a more-integral role in the start-up or operation of the business. A relatively successful WEDP entrepreneur in Hawassa talked about managing multiple businesses, some jointly with her husband and some on her own. Her business provided heavy truck rentals, and her husband jointly financed it. She explained that she used profits from one of her retail shops combined with her husband’s
per capita income does not have any effect on institutions. This result is in line with the recent findings in Acemoglu et al (2006), where they test the relationship between income and democracy. They show that controlling for factors that simultaneously affect both variables removes the statistical association between income per capita and various measures of democracy.

In Table 7, we perform the same analysis as table 6 but using the law and order index from ICRG. We show the main results, which correspond to columns 6, 8, 9 and 11 of table 6. When using the ICRG variable, the results are similar to the ones in table 5 where we use the protection against expropriation risk. The stronger the legal system, the lower the probability of civil war. Moreover, in all specifications, per capita income does not exhibit any effect on civil war. The first stage results are also in line with the results in table 6. Colonial origin and European settlement in 1900 exhibits a significant effect on the law and order variable. Once European settlement in 1900 is included as instrument, per capita income does not exhibit any indirect effect.

# **4.1 Over-identification tests**

In this section we investigate the validity of our exclusion restriction condition. The Sargan test for over-identification cannot reject the null hypothesis that the instruments satisfy the orthogonality conditions (p=0.74). Another issue of importance is to consider the European settlement in 1900 and colonial origin as included instruments, and therefore incorporate them into the civil war regression and analyze whether they have any direct effect on civil wars. We approach the problem with two different strategies. In the first we add no new instrument. Therefore, to analyze the direct effect of colonial origins on civil wars, we assume that European settlement in 1900 is exogenous and therefore satisfies the orthogonality condition, and to analyze the direct effect of the European Settlement in 1900 on civil wars, we assume that colonial origin satisfies the orthogonality 13
Banks with more exposure to the oil shock seem to benefit less from interest rate actions, as evidenced in both the full and restricted sample. The result highlights the key difference between liquidity and solvency risks. Banks that are heavily exposed to the oil sector are more susceptible to losses due to the likelihood of defaults in this industry. To the extent that markets internalize that the profitability of these banks will be lower, interest rate cuts would have small effects. On the other hand, banks with short-term liquidity constraints, but with less exposed portfolios, stand to benefit more from the ease in funding conditions.

Announcement concerning asset purchases were also followed by increases in the abnormal returns of illiquid banks, albeit with marginal statistical significance in the restricted sample. We interpret this finding as evidence that unconventional monetary policy also played a role in reducing the liquidity risk premium.

Since announcements should have a greater impact if they are unexpected than if they are expected, we further restrict our sample to days with monetary policy surprises. That is, we restrict our sample to days when the monetary authority made policy rate announcements after emergency meetings, or when the domestic policy rate cut was larger than the expected by market analysts.<sup>21</sup> We further confirm earlier findings with the sample of unexpected monetary policy announcements. Although surprises of interest rate cuts were not associated with significant increases in bank stock prices, such announcements did appear to have differential effect across banks. For instance, monetary policy surprises were associated with declines in the liquidity risk

> 21 According to the Reuters forecast based on the one-week analyst survey of benchmark rates. Some examples of monetary policy surprises include Thailand’s 25bps cut in the benchmark rate (February 5), Canada’s repo rate cut of 50bps (March 4), and the United Kingdom 50bps repo rate cut during the emergency meeting of March 11. The only case in which the rate cut was smaller than expected was in Thailand on March 20. We drop this date from the sample of monetary policy surprises.

26
environmental degradation. In 2015, about 45 percent of the population used wood or carbon for heating or cooking, though urban households are less likely than rural to do so.

Overcrowding is the only housing indicator that clearly shows a reverse regional trend: too many people living in a too small a space is more prevalent in urban than in rural areas. This result is to be expected, given the higher population density in urban areas.

Educational attainment for the current working-age population is generally high; only 4.4 percent of households have no a member with more than secondary education (Figure 8). Similarly, school enrollment of children aged 6–17 is high. However, responses on quality of education (measured for households where at least one member is attending school) reveal significant dissatisfaction with public services.

**Figure 8. Education-Related Deprivations, 2015, Figure 9. Education-Related Deprivations by Percent Location, 2015, Percent**

<!-- Start of picture text --> 20% 20%<br>16%<br>15% 15%<br>10%<br>10%<br>4% 4% 5%<br>5% 3%<br>0%<br>0%<br>Yerevan city Other urban areas Rural areas<br>Source: ILCS data. Source: ILCS data.<br>education Schooling<br>education rate No secondary enrollment rate Quality of Access to<br>No secondary services services<br>education services education services<br>Schooling enrollment Quality of education Access to education<br><!-- End of picture text --> Over 20 percent of households report that more than half of their working-age members are not working (Figure 10). Armenia has one of the lowest labor force participation rates in the ECA region. Low labor market participation, especially when 14.6 percent of households have at least one member who is longterm unemployed, reflects structural problems in the domestic labor market. Limited work opportunities in rural areas translate into a significant share of households being unable to benefit from decent jobs and a large share working informally (Figure 11).<sup>6</sup>

> 6 The decent-jobs indicator is constructed to capture deprivation in terms of labor market participation and long-term unemployment. This intentional “double-counting” ensures that the measure captures the labor issues that inform major policy goals in Armenia.

15
Story, William T., and Sarah A. Burgard. “Couples’ reports of household decision-making and the utilization of maternal health services in Bangladesh.” Soc Sci Med. 2012 Dec; 75(12): 2403–2411.

<mark>Stout, Joel T. "Goal setting strategies, locus of control beliefs, and personality characteristics of NCAA division IA swimmers." (1999).</mark> Trommlerová, Sofia K., Stephan Klasen, and Ortrud Leßmann. 2015. "Determinants of empowerment in a capability-based poverty approach: evidence from the Gambia," _World Development_ , vol. 66(C), pages 1- 15.

UN Statistical Commission. 2013. Report on Gender Statistics by the United Nations Secretary General to the forty-fourth session of the Statistical Commission in February-March 2013, available at http://unstats.un.org/unsd/statcom/doc13/2013-10-GenderStats-E.pdf <mark>Valecha, G.K., 1972.</mark> _<mark>Construct validation of internal-external locus of control as measured by an abbreviated 11-item IE scale</mark>_ <mark>. The Ohio State University.</mark> <mark>Van Dalen, H., Van Niekerk, E. & Pottas (1987). The validation of Furnham's Locus of Control scale for a Black Southern African group.</mark> _<mark>Journal of Industrial Psychology</mark>_ <mark>,</mark> _<mark>15</mark>_ <mark>, pp.12-21.</mark> Vaz, Ana, Pierre Pratley, and Sabina Alkire. 2016. “Measuring Women’s Autonomy in Chad Using the Relative Autonomy Index.” _Feminist Economics_ 22(1).

Vaz, Ana, Sabina Alkire, Agnes Quisumbing and Esha Sraboni. 2013. “Measuring autonomy: evidence from Bangladesh.” Oxford Poverty and Human Development Initiative _(_ OPHI _) Research in Progress 38a._ <mark>Verme, P., 2009. Happiness, freedom and control.</mark> _<mark>Journal of Economic Behavior & Organization</mark>_ <mark>,</mark> _<mark>71</mark>_ <mark>(2), pp.146-161.</mark> World Bank. 2012. _World Development Report: Gender Equality and Development._ Washington, DC.

World Bank. 2014. _Voice and agency: empowering women and girls for shared prosperity._ Washington, DC 66
(15.2%) of respondents reported having access to both public and private pension funds, and these respondents are included in the former group ( _Planners: private pension funds_ ); hence, the remaining 67.2% of the sample (918 observations) is assumed to have access only to public pension funds.

(c) _Non-planners_ are those who responded, ̳Your own earnings (I will continue to work after retirement)‘; ̳Support from children, relatives, acquaintances‘; ̳Support from church and charitable organizations‘; and/or ̳Don‘t know‘. The total number of respondents in this group is 189 individuals (13.8%).

# **3. Empirical Evidence**

# **_3.1 The Measurement of Financial Literacy in Russia_**

Our survey included three specific financial literacy questions designed to assess: (a) understanding of interest rate (numeracy); (b) understanding of inflation; and (c) understanding of risk diversification. The exact questions are reported below:

**_Interest Question_** : ― _Let’s assume that you deposited 100,000 rubles in a bank account for 5 years at 10% interest rate. The interest will be earned at the end of each year and will be added to the principal. How much money will you have in your account in 5 years if you do not withdraw either the principal or the interest?_ ‖

**_Inflation Question:”_** _Let’s assume that in 2010 your income is twice what it is now, and that consumer prices also grow twofold. Do you think that in 2010 you will be able to buy more, less, or the same amount of goods and services as today?_ ‖

# **_Risk Question:_** _”Which is the riskier asset to invest in?_ ‖

Table 1 shows summary statistics of our financial literacy questions for the whole sample and for the sample of individuals aged 25–65. As shown in Panel A, 36.3% of individuals in the whole sample (39% of those aged 25–65) responded correctly to the interest compounding question, with another 32.9% (26.5% aged 25–65) replying that they cannot even roughly provide an answer. Panel B shows that 50.8% of individuals in the sample responded correctly to the inflation question (53.9% of those aged 25–65) and 6
|Switzerland<br>Türkiye|Ethiopia<br>French Polynesia|Sri Lanka<br>St. Kitts and Nevis|
|---|---|---|
|United Kingdom|Gabon|Uganda|
|Uruguay|Ghana<br>Guatemala<br>Guinea|Vanuatu<br>Vietnam|

Note: * = No time-varying patterns in sector targeting, and so cannot be included in treatment group.

Table 4 then provides a breakdown of the FDI statistics for this country-sample, showing the total count per country and their number of included sectors. It also shows the unique country pairs (that is – the number of countries reporting their FDI position in the host country) which range from a low of 16 (for Uruguay) to a high of 29 countries (for Austria, the Russian Federation, and Switzerland).

To consider the share of FDI captured by this new sectoral FDI database, we also compare it to the aggregate FDI stock from the countries included in the World Bank’s harmonized bilateral FDI database.<sup>5</sup> This finds that the FDI-reporting countries jointly make up almost two-thirds of all global FDI stock. For the study sample this share is even higher, covering over 70 percent of all countries’ FDI stock (see Annex tables A1 and A2). The three countries with the highest share of FDI covered by our sectoral FDI database are Italy, the Arab Republic of Egypt and Finland (with 96, 95 and 95 percent of FDI covered by the sample, respectively) while the lowest countries are Hong Kong SAR, China, India and Uruguay (at 13, 44 and 50 percent, respectively). In sum, for most target countries the sectoral FDI database provides a reasonable approximation for their aggregate FDI stock. Yet, for selected countries the interpretation is more limited, and focused on only the effectiveness of IPAs at attracting FDI from OECD countries.

**Table 4: Study sample – breakdown by country**

|CountryISO|CountryName|Total Count|Sectoral Count|Unique Country-Pair Count|
|---|---|---|---|---|
|AUS|Australia|1,938|28|26|
|AUT|Austria|3,377|28|29|
|BGR|Bulgaria|3,086|28|28|
|BRA|Brazil|2,876|28|25|
|CAN|Canada|3,052|28|26|
|CHE|Switzerland|3,342|28|29|
|CHL|Chile|1,557|28|23|
|CYP|Cyprus|3,204|28|27|
|CZE|Czech Republic|3,096|27|28|
|DEU|Germany|3,102|28|28|
|DNK|Denmark|3,236|28|27|
|EGY|Egypt, Arab Rep.|1,555|26|23|
|ESP|Spain|3,142|28|27|
|EST|Estonia|2,694|28|22|
|FIN|Finland|2,877|28|25|
|FRA|France|3,254|28|28|
|GBR|United Kingdom|3,217|28|28|
|GRC|Greece|2,772|28|26|
|HKG|Hong Kong SAR, China|2,610|28|23|
|HUN|Hungary|3,025|28|27|
|IND|India|2,993|28|25|
|IRL|Ireland|3,086|28|27|
|ISL|Iceland|1,223|28|18|

5 This harmonizes bilateral FDI from the IMF CDIS database, the OECD BMP4 database and China’s Annual Yearbook. Because aggregate and sectoral FDI positions are not directly comparable, we estimate each country’s share of aggregate FDI stock that arise from the countries that report on sectoral FDI (i.e. those in table 2).

11
WPS3335

# **Productivity and the Investment Climate: What Matters Most?**

Fabiano Bastos and John Nasir

## **Abstract**

This paper explores the links between the investment climate and firm-level productivity and attempts to identify which dimensions of the investment climate matter most for productivity. The analysis is based on data collected in a recent Investment Climate survey of garment and food processing firms across five countries in Eastern Europe and Central Asia. The paper uses the first principal components of a series of indicators to summarize broad aspects of the investment climate and identify those most important in determining productivity. The results indicate that competitive pressure is the most critical factor in the investment climate, accounting for more variation in firm-level productivity than infrastructure provision or issues related to government rent seeking and bureaucratic burden. This suggests that to improve productivity, increase output, and reduce poverty, policymakers should focus reform efforts on removing barriers to entry and creating open, highly competitive markets.

## World Bank Policy Research Working Paper 3335, June 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._ 1
29 problematic behaviors, with responses coded as “never”, “sometimes” and “often”. We use the number of behavioral problems for which a caregiver answers “often”. Unlike the other outcomes we study, behavioral problems do not necessarily indicate a delay, as there are no benchmarks or established ages at which they are predicted to decrease.<sup>11</sup> All of the tests we use were carefully piloted in the field, and adjustments were made, as necessary. Details of all of the tests we use are provided in Appendix 2.

We also analyze impacts on intermediate outcomes that may be related to child cognitive development. The survey included an extensive expenditure module taken from the 2001 Nicaragua Living Standards Measurement Study (LSMS) survey. We focus on various expenditure categories, including food expenditures, which include actual expenditures, home production, and food consumed outside the home. The data also include information on child food intake, stimulation, birthweight, children’s weight and height, preventive health care, and caregivers’ mental health. Mental health was measured using the Center for Epidemiological Studies Depression scale (CESD), a widely-used measure of depression which consists of 20 questions on self-reported depression (Radloff 1977). Finally, caregivers’ observed parenting behavior was registered through the HOME score, an index of 11 positive and negative behaviors that the enumerator observes during interviewing and testing (Bradley 1993; Paxson and Schady 2007, 2008).

# **3. Delays in cognitive development in early childhood**

We first describe cognitive development outcomes of children in our sample, focusing on the control group. Table 2 shows the fraction of children who are in the bottom 25 percent and, separately, the bottom 10 percent of the international distribution that was used to standardize a given test. The first point to note from the table is that a very large fraction of children in our sample is delayed, although this varies considerably by outcome. The fraction of children who are behind for their age is largest for the measures of language—97 percent of children in our sample are in the lowest quartile of the distribution of the TVIP, and 85 percent have a score that places them in the lowest decile. Comparable numbers for the measure of

> 11 There is some overlap between the BPI and the social-personal behaviors measured in the Denver.  For instance, the Denver personal-social subtest has a number of items that relate to social interactions; and the BPI also has questions about whether or how the child interacts with others.

8