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Besides superior productivity, what other firm characteristics are associated with export success? This empirical study identifies the effects of signaling tools (foreign technical license, International Standards Organization certification, and review of financial statements) and Internet tools (email and website) on export frequency and intensity of firms in developing countries. Using data from the World Bank's Enterprise Survey, the author finds that productivity, size, foreign ownership, International Standards Organization certification, and the use of Internet tools have positive effects on the probability of exporting and on the intensive margin of trade. International Standards Organization certified firms are 22 percent more likely to be exporters, whereas firms that use their own website to communicate with clients and suppliers increase the likelihood they export by 11 percent. Among exporting firms, those that are International Standards Organization certified sell 41 percent more abroad than firms that are not certified. Firms that use email sell 31 percent more in foreign markets than exporting firms that do not.

Developing countries --- E-Business --- Economic Theory & Research --- Exporters --- Foreign ownership --- Labor Policies --- Markets and Market Access --- Microfinance --- Private entities --- Science and Technology Development --- Technology transfer

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This paper proposes a new framework to analyze aid effectiveness. Using World Bank firm survey data and OECD aid flow data, the authors analyze whether aid targets areas that firms in developing countries have identified as obstacles for their growth and whether aid actually improves firms' perceptions of those areas. The analysis finds that aid does target the areas that firms have identified as obstacles; aid funding trade related projects is particularly effective in targeting the correct countries. For the most part, aid has a positive impact on improving firms' perceptions, particularly in the business environment. And for each target area, smaller aid disbursements tend to be more effective at improving firm perceptions than larger disbursements.

World Bank --- Affiliated organizations --- Capital investment --- Developing countries --- Development Economics & Aid Effectiveness --- Disability --- Environmental Economics & Policies --- Environments --- Gender and Health --- School Health --- World Development Indicators

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The authors create a standards restrictiveness index using newly available data on maximum residue levels of pesticides for 61 importing countries. The paper analyzes the impact that food safety standards have on international trade of agricultural products. The findings suggest that more restrictive standards are associated, on average, with a lower probability of observing trade. However, after controlling for sample selection and the proportion of exporting firms in a gravity model, the analysis finds that the effect of standards on trade intensity is indistinguishable from zero. This is consistent with the assumption that meeting stringent standards increases primarily the fixed costs of exporting. Once firms enter the market, however, standards do not impact the level of exports. The analysis also finds a greater marginal effect of BRICS (Brazil, Russia, India, China, and South Africa) standards on the probability of trade, relative to other countries' standards, keeping in mind however that on average BRICS standards are less restrictive. The analysis also suggests that exporters in low-income countries are more adversely affected by stricter standards.

Agriculture --- Economic Theory & Research --- Emerging markets --- Food & Beverage Industry --- Free Trade --- International Economics & Trade --- International trade --- Labor Policies --- Macroeconomics and Economic Growth --- Standards --- Trade Law

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Why do some countries create more jobs than others? To consider this question, in this paper we focus on one of the most basic relationships, between growth and employment. In practice, the private sector responds very differently to growth (and decline) across countries. Understanding the patterns and drivers of private sector decisions to expand and shed jobs may be important to guide policy approaches for job creation. This paper analyzes the output-employment relationship in the context of business cycles at three levels: the macro-economy; industry (in manufacturing); and firms. The results highlight major differences in private sector job creation responsiveness to growth across stages of development and economic structures, but a critical finding is that economies (and firms) where formal sector job creation was more responsive to growth cycles generated more jobs overall. In addition, results from both the macro analysis and the sectoral analysis suggests significant complementarity between capital and labor. Finally, the findings may help to frame a broad policy agenda for job creation, including: macro-economic fundamentals, responsive labor markets, access to finance, competition, and a facilitative business regulatory environment. These are not surprising, but nevertheless frame a set of issues that could be explored in further research.

Business Environment --- Competitiveness and Competition Policy --- Economic theory & Research --- Employment --- Job Creation --- Labor Market --- Labor Markets --- Macroeconomics and Economic Growth --- Private Sector --- Private Sector Development --- Rural Development --- Rural Labor Markets --- Social Protections and Labor

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The paper estimates the effect of product standards on firms' export decisions using two novel datasets. The first covers all exporting firms in 42 developing countries. The second covers pesticide standards for 243 agricultural and food products in 63 importing countries over 2006-12. The analysis shows that product standards significantly affect foreign market access. More restrictive standards in the importing country, relative to the exporting country, lower firms' probability of exporting as well as their export values and quantities. The relative restrictiveness of standards also deters exporting firms from entering new markets and leads to higher exit rates from those markets. Moreover, firm characteristics mediate the effect of product standards on firms' export decisions. Smaller exporters are more negatively affected in their market entry and exit decisions by the relative stringency of standards than larger exporters. Positive network effects of exporters from the same country may help reduce the burden of importing countries' standards on firms' decisions to enter new markets.

Education --- Finance and Financial Sector Development --- Macroeconomics and Economic Growth --- Social Protections and Labor