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This paper investigates whether the agglomeration of economic activity in regional clusters affects long-run manufacturing total factor productivity growth in an emerging market context. It explores a large firm-level panel dataset for Chile during a period characterized by high growth rates and rising regional income inequality (1992-2004). The findings are clear-cut. Locations with greater concentration of a particular sector did not experience faster growth in total factor productivity during this period. Rather, local sector diversity was associated with higher long-run growth in total factor productivity. However, there is no evidence that the diversity effect was driven by the local interaction with a set of suppliers and/or clients. The authors interpret this as evidence that agglomeration economies are driven by other factors, such as the sharing of access to specialized inputs not provided solely by a single sector, such as skills or financing.
Achieving Shared Growth --- Agglomeration Economies --- Economic Growth --- Economic Theory & Research --- International Economics & Trade --- Knowledge Spillovers --- Labor Policies --- Local Growth --- Political Economy --- Total Factor Productivity Growth --- Chile
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Using a cross-section of more than 40,000 manufacturing and services firms in 79 developing countries from the World Bank's Enterprise Surveys Database, this paper assesses how firm location determines the likelihood and extent of exporting in developing countries. Descriptive statistics confirm higher export participation (but not intensity) for firms in core versus non-core regions, despite the finding that firms in the core assess many aspects of the investment climate more negatively. Results from a probit model show that, in addition to firm-specific characteristics, both regional investment climate and agglomeration factors have a significant impact on export participation. Specifically, customs clearance and electricity quality matter for export participation for manufacturing firms. Although localization economies and export spillovers are associated with increased exporting, the opposite is found for urbanization economies for both manufacturing and services firms. The analysis finds that firm-level determinants of exporting matter more for firms located in non-core regions, while regional determinants and agglomeration economies play a larger role in core regions. The findings point to the presence of congestion costs in the core, and suggest that policy interventions to target export participation are likely to have a greater impact if they are focused on core regions over non-core regions, where firm-specific factors predominate. Moreover, the importance of export spillovers and localization economies highlights the potential value of efforts to remove barriers to natural agglomeration both in core and non-core regions, for example through investments in infrastructure, the provision of social services, and regional integration arrangements.
Agglomeration --- Banks & Banking Reform --- E-Business --- Export --- International Economics & Trade --- Localization --- Location --- Macroeconomics and Economic Growth --- Microfinance --- Poverty Reduction --- Private Participation in Infrastructure --- Regional Economic Development --- Spillovers --- Urbanization
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This paper develops an empirical measure of growth poles and uses it to examine the phenomenon of multipolarity. The authors formally define several alternative measures, provide theoretical justifications for these measures, and compute polarity values for nation states in the global economy. The calculations suggest that China, Western Europe, and the United States have been important growth poles over the broad course of world history, and in modern economic history the United States, Japan, Germany, and China have had prominent periods of growth polarity. The paper goes on to analyze the economic and institutional determinants, both at the proximate and fundamental level, that underlie this measure of polarity, as well as compute measures of dispersion in growth polarity shares for the major growth poles.
Achieving Shared Growth --- Currencies and Exchange Rates --- Economic Growth --- Economic Theory & Research --- Growth Dynamics --- Growth Poles --- Growth Spillovers --- Macroeconomics and Economic Growth --- Multipolar World --- Population Policies
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Zoonoses --- Zoonose --- Épidémiologie --- Epidemiology --- Thérapeutique --- therapy --- Zoonoses. --- 619 --- Zoonotic Diseases --- Zoonotic Infections --- Zoonotic Infectious Diseases --- Disease, Zoonotic --- Disease, Zoonotic Infectious --- Diseases, Zoonotic --- Diseases, Zoonotic Infectious --- Infection, Zoonotic --- Infections, Zoonotic --- Infectious Disease, Zoonotic --- Infectious Diseases, Zoonotic --- Zoonotic Disease --- Zoonotic Infection --- Zoonotic Infectious Disease --- Disease Reservoirs --- Public Health --- Communicable Diseases, Emerging --- Zoonotic Spillover --- Spillovers, Zoonotic --- Zoonotic Spillovers --- Maladies infectieuses --- Maladie animale --- Transmissibilite a l'homme
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Our study uses administrative data on firm-to-firm transactions and quasi- experimental variation in the rollout of electronic invoicing reforms in Peru to study the diffusion of e-invoicing through firm networks and its effect on tax compliance. We find that voluntary e-invoicing adoption is higher amongst firms with partners who are mandated to adopt e-invoicing, implying positive technology adoption spillovers. Spillovers are stronger from downstream partners and from export-oriented firms. Firms are less likely to continue transacting with a partner who has been mandated into e-invoicing, with the effect only partially reversed if both firms adopt e-invoicing, suggesting that network segmentation may occur. Smaller firms who transact with partners mandated into e-invoicing report 11 percent more sales and pay 17 more VAT in the year that their partner is mandated to adopt e-invoicing, suggesting positive spillovers in tax compliance behavior for this subset of firms.
Macroeconomics --- Economics: General --- Taxation --- Firm Behavior: Empirical Analysis --- Business Taxes and Subsidies --- Tax Evasion and Avoidance --- Firm Performance: Size, Diversification, and Scope --- Formal and Informal Sectors --- Shadow Economy --- Institutional Arrangements --- Transactional Relationships --- Contracts and Reputation --- Networks --- Taxation, Subsidies, and Revenue: General --- Externalities --- Innovation --- Research and Development --- Technological Change --- Intellectual Property Rights: General --- Economic & financial crises & disasters --- Economics of specific sectors --- Public finance & taxation --- Technology --- general issues --- Value-added tax --- Taxes --- Tax return filing compliance --- Revenue administration --- Spillovers --- Financial sector policy and analysis --- Positive spillovers --- Tax spillovers --- Tax policy --- Currency crises --- Informal sector --- Economics --- Spendings tax --- Tax administration and procedure --- International finance
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Our study uses administrative data on firm-to-firm transactions and quasi- experimental variation in the rollout of electronic invoicing reforms in Peru to study the diffusion of e-invoicing through firm networks and its effect on tax compliance. We find that voluntary e-invoicing adoption is higher amongst firms with partners who are mandated to adopt e-invoicing, implying positive technology adoption spillovers. Spillovers are stronger from downstream partners and from export-oriented firms. Firms are less likely to continue transacting with a partner who has been mandated into e-invoicing, with the effect only partially reversed if both firms adopt e-invoicing, suggesting that network segmentation may occur. Smaller firms who transact with partners mandated into e-invoicing report 11 percent more sales and pay 17 more VAT in the year that their partner is mandated to adopt e-invoicing, suggesting positive spillovers in tax compliance behavior for this subset of firms.
Macroeconomics --- Economics: General --- Taxation --- Firm Behavior: Empirical Analysis --- Business Taxes and Subsidies --- Tax Evasion and Avoidance --- Firm Performance: Size, Diversification, and Scope --- Formal and Informal Sectors --- Shadow Economy --- Institutional Arrangements --- Transactional Relationships --- Contracts and Reputation --- Networks --- Taxation, Subsidies, and Revenue: General --- Externalities --- Innovation --- Research and Development --- Technological Change --- Intellectual Property Rights: General --- Economic & financial crises & disasters --- Economics of specific sectors --- Public finance & taxation --- Technology --- general issues --- Value-added tax --- Taxes --- Tax return filing compliance --- Revenue administration --- Spillovers --- Financial sector policy and analysis --- Positive spillovers --- Tax spillovers --- Tax policy --- Currency crises --- Informal sector --- Economics --- Spendings tax --- Tax administration and procedure --- International finance --- General issues
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Convergence and spillovers across countries and within countries are old, but recurrent policy concerns, and India is no exception to this rule. This paper examines convergence and spillovers across Indian states using non-stationary panel data techniques. Results on convergence among Indian states are generally found to be similar, but more nuanced, than previous studies. Generally speaking, there is evidence of divergence over the entire sample period, convergence during sub-periods corresponding to structural breaks, and club convergence. There is strong evidence of club convergence among the high- and low-income states; the evidence for middle-income states is mixed. Dynamic spillover effects among states are small.
Infrastructure --- Investments: General --- Macroeconomics --- Industries: Service --- Personal Income, Wealth, and Their Distributions --- Investment --- Capital --- Intangible Capital --- Capacity --- Externalities --- Industry Studies: Services: General --- Personal income --- Spillovers --- Private investment --- Services sector --- Income --- Saving and investment --- International finance --- Service industries --- India
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The East African Community (EAC) countries (Kenya, Tanzania, Uganda, and Rwanda) have been affected by the global financial crisis and global recession. The fall in global demand and inflows and tighter liquidity conditions abroad affected the countries in this region as elsewhere in sub-Saharan Africa. But how hard have countries in the EAC been hit? Have the spillovers from the global crisis affected countries in the region as much as other countries in the sub-Saharan region? Have the transmission channels or magnitudes of the spillovers been different across EAC countries? How can these countries return quickly to a path of sustained high growth? What is the role for policy? Would acceleration of regional integration and policy coordination help achieve this goal? Would it make the region less susceptible to shocks? This paper focus on the EAC countries and attempts to address these questions.
Exports and Imports --- Macroeconomics --- Fiscal Policy --- Trade: General --- Energy: Demand and Supply --- Prices --- Externalities --- International economics --- Exports --- Fiscal stimulus --- Oil prices --- Fiscal stance --- Spillovers --- International trade --- Fiscal policy --- Financial sector policy and analysis --- International finance --- Kenya
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Anecdotal evidence suggests that the economies of South Africa and its neighbors (Botswana, Lesotho, Mozambique, Namibia, Swaziland, and Zimbabwe) are tightly integrated with each other. There are important institutional linkages. Across the region there are also large flows of goods and capital, significant financial sector interconnections, as well as sizeable labor movements and associated remittance flows. These interconnections suggest that South Africa’s GDP growth rate should affect positively its neighbors’, a point we illustrate formally with the help of numerical simulations of the IMF’s GIMF model. However, our review and update of the available econometric evidence suggest that there is no strong evidence of real spillovers in the region after 1994, once global shocks are controlled for. More generally, we find no evidence of real spillovers from South Africa to the rest of the continent post-1994. We investigate the possible reasons for this lack of spillovers. Most importantly, the economies of South Africa and the rest of Sub-Saharan Africa might have de-coupled in the mid-1990s. That is when international sanctions on South Africa ended and the country re-integrated with the global economy, while growth in the rest of the continent accelerated due to a combination of domestic and external factors.
Exports and Imports --- Macroeconomics --- Externalities --- Trade: General --- Education: General --- Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) --- International economics --- Education --- Economic growth --- Spillovers --- Exports --- Imports --- Business cycles --- Financial sector policy and analysis --- International trade --- International finance --- South Africa
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Using firm-level data for Jordan, the paper estimates the extent to which growth spillovers from foreign direct investment (FDI) to local firms stem from persistent learning externalities (i.e., they endure even after foreign investment leaves as knowledge has been transferred to local firms) or from transitory effects (e.g., demand increases that evaporate following isinvestment). The paper find that spillovers have a significant transitory nature, with employment and capital growth declining when FDI falls, particularly in downstream industries supplied by locals. This suggests that if FDI-attracting policies are intended to promote sustainable growth, it may be more effective to attract and retain FDI via long-term structural policies, for instance, through low corporate tax rates rather than temporary tax holidays or through policies that strengthen the domestic absorptive capacity and linkages between foreign and local firms.
Economic Theory and Research. --- Emerging Markets. --- FDI. --- Foreign Direct Investment. --- International Economics and Trade. --- Investment and Investment Climate. --- Labor Policies. --- Macroeconomics and Economic Growth. --- Private Sector Development. --- Social Protections and Labor. --- Spillovers.
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