Markets and Competition Policy Team, Macroeconomics Trade and Investment Global Practice
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Markets and Competition Policy Team, Macroeconomics Trade and Investment Global Practice
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Last updated August 30, 2023
Mariana Iootty is a Senior Economist at the World Bank working in the Macroeconomics Trade and Investment Global Practice, Markets and Competition Policy team. Mariana is a Brazilian national and has been with the World Bank for 6 years, during which time she led projects on innovation financing, regulatory impact assessment, global value chain analysis, trade competitiveness assessment and productivity analysis in several countries in Eastern Europe and Latin America. Her main area of research is microeconomic analysis of economic development and firm performance. Prior to joining the Bank, Mariana was a tenured assistant professor in Brazil, and a visiting fellow in the University of Reading, UK.
Publication Search Results
Now showing 1 - 10 of 20
Publication(World Bank, Washington, DC, 2013-06) Onugha, Ifeyinwa ; Iootty, Mariana ; Kilroy, Austin ; Palmade, VincentAs a small and open economy, Georgia's growth prospects are directly linked to its ability to produce and sell goods and services competitively in the global marketplace. The World Bank Georgia Competitive Industries Technical Assistance Project has been launched in February 2013 in response to the December 19, 2012 letter of the Ministry of economy and sustainable development of Georgia with the request to get the Bank's support in diagnoses of trade competitiveness and identification of a road map for reform to enhance Georgia's export growth and competitiveness. The project is envisioned as a three phase program, that comprises: February-June 2013 analytical and technical assistance support, including diagnostic of trade competitiveness and constraints to export growth, and competitive industries sector diagnostic report, supported by extensive discussions through a series of workshops, private and public sector interviews, discussions and a large 2-day seminar on February 28-March 1, 2013; July-December 2013-deep dive analysis of selected competitive industries and development of a reform road map to support Georgia's competiveness strategy; and from January 2013-reform implementation, supported by the Bank's technical assistance, policy advice and lending operations. The report is prepared on the basis of the competitive industries sector prioritisation framework. The report incorporates ideas and recommendations received during February 28-March 1, 2013 seminar and several smaller workshops and brainstorming sessions held in March-May 2013. Export led growth provides also a strong motivation to reform the domestic industries which will continue to account for the vast majority of employment. Georgia's main domestic industries include agriculture, retail/wholesale, construction, transportation, health and education. Since economic growth is accounted for by productivity improvements by workers in all industries, export-led growth can play a key role in raising these productivity levels.
Publication(World Bank, Washington, DC, 2013-06) De Rosa, Donato ; Iootty, Mariana ; Pirlea, Ana FlorinaInappropriate regulation can influence productivity performance by affecting incentives to invest and adopt new technologies, as well as by directly curbing competitive pressures. Results of a labor productivity growth model for European countries suggest that improving the regulatory environment -- proxied by the Worldwide Governance Indicators regulatory quality indicator -- and boosting effective exposure to competition through increasing trade integration -- expressed as the ratio of exports plus imports to gross domestic product -- have positive effects on productivity growth. In Romania a 10 percent increase in openness to global trade over 1995-2010 would have boosted productivity growth by 9.7 percent per year. A 10 percent increase in openness to European Union trade, in particular, would have led to an annual increase in productivity of 7 percent. Realizing the benefits from trade integration depends to some extent on regulation. In this regard, the effects of regulation on productivity growth are found to be positive, regardless of the indicator used to measure regulation, and both through direct and indirect channels (by increasing the speed at which a country catches up with productivity leaders). Simulation results also show how countries with different levels of regulatory quality would benefit from a regulatory improvement: had Romania improved its regulatory environment to the same level as Denmark in 2010, its annual productivity growth would have been 14 percent higher over 1995-2010.
Publication(World Bank, Washington, DC, 2013-11) De Rosa, Donato ; Iootty, Mariana ; Pirlea, Florina ; Aprahamian, Arabela ; Stanescu, AlexandruRomania's European Union accession in 2007 has resulted in a substantial reduction of the formal barriers to integration with the European Union Single Market. This study takes stock of the progress by benchmarking product market policies in Romania to those of European Union countries, as measured by the OECD indicators of Product Market Regulation. These indicators allow for a comprehensive mapping of policies affecting competition in product markets. Comparison with European Union countries reveals that, for half of the policy areas covered by the study, Romania's product market policies are more restrictive of competition than most direct comparators in the region, whereas for other indicators Romania is on a par with the European Union average or has achieved best practice. Nonetheless, these results should be interpreted in light of the fact that the Product Market Regulation approach measures officially adopted policies and does not capture implementation. Future reforms should be directed both at improving official regulation and, where policies that favor competition are already in place, toward effective enforcement.
Are Natural Resources Cursed? An Investigation of the Dynamic Effects of Resource Dependence on Institutional Quality(World Bank, Washington, DC, 2012-07) De Rosa, Donato ; Iootty, MarianaThis paper examines whether natural resource dependence has a negative influence on various indicators of institutional quality when controlling for the potential effects of other geographic, economic and cultural initial conditions. Analysis of a panel of countries from 1996 to 2010 indicates that a high degree of resource dependence, measured as the share of mineral fuel exports in a country's total exports, is associated with worse government effectiveness, as well as with reduced levels of competition across the economy. Furthermore, estimation of long-run elasticities suggests that government effectiveness and the intensity of domestic competition decrease over time as the dependence on natural resources increases. An illustration of the Russian case shows that the negative effects accumulate in the long run, leading to a worse deterioration of government effectiveness in Russia than in Canada, a country with a comparable resource endowment but far better overall institutional quality. This result is corroborated by a significant negative correlation found between regional resource dependence and an indicator of regulatory capture in Russian regions, which indicates that the regulatory environment is more likely to be subverted in regions that are more dependent on extractive industries. Overall, the findings would be consistent with a situation in which a generally weak institutional environment would allow resource interests to wield the bidding power accruing from export revenues to subvert the content of laws and regulations, as well as their enforcement. The fact that this is associated with negative externalities for the rest of the economy, notably by undermining a level playing field across non-resource sectors, sheds light on a potential channel for the resource curse.
Publication(World Bank Group, Washington, DC, 2014-07) Iootty, Mariana ; Correa, Paulo ; Radas, Sonja ; Skrinjaric, BrunoDrawing on a representative sample of firms, this paper presents some microeconomic evidence on the productivity growth process in Croatia since the onset of recession (2008-12). Four types of results are highlighted. First, there is a persistent (and increasing) heterogeneity in the performance of Croatian firms along outcome measures. Second, Croatia lags behind regional peers in entrepreneurship measures, which suggests a comparatively lower economic dynamism. Third, the lack of dynamism displayed by the Croatian economy is confirmed when looking at the firm entry and exit process: the analytical results point to reduced firm dynamism compared with Croatia's peers in Europe and Central Asia. Fourth, the contribution of net entry to overall productivity growth in Croatia is surprisingly negative. This is contrary to what would be expected based on the literature and suggests that the process of "destructive creation" in Croatia has not been efficient, as the market might be eliminating firms that are potentially productive. Policies that foster market contestability should be pursued, especially policies aiming at better product market regulation (such as liberalization of entry into the service sector, particularly retail and infrastructure). Measures to help finance entrepreneurship (in promising sectors) should be used to support enhancements in firm productivity. In addition, appropriate bankruptcy rules play a key role by easing the exit process and allowing low-productive units to leave the market and free resources that can be better used by other, more efficient, firms.
Publication(World Bank Group, Washington, DC, 2014-08) Artuc, Erhan ; Iootty, Mariana ; Pirlea, Ana FlorinaThis paper uses the gravity model to analyze whether the varying export performance of Croatian counties can be explained by their proximity to border gates, ports, and other county-specific characteristics. The analysis finds that longer distances to border gates increase trade frictions significantly for many product categories, although these frictions have been decreasing between 2007 and 2012. The paper analyzes the county specific factors that are associated with variation in export performance, net of distance. Results show that exports are strongly and positively correlated with motorway and road density, the size of the labor force, low-skill ratio, and the number of patents. These variables are also associated with a greater diversity of exports in terms of products and destinations. Several general policy implications are highlighted. The significant association between motorway and road density and export volume, number of destinations, as well as the diversity of exported products may indicate that improvements in connectivity and facilitation of transport could still play a significant role in enhancing regional trade outcomes. Similarly, good performance in research and development may significantly help to spur competitiveness and allow local producers to enter new markets in products and destinations, which in turn can increase the level of diversification and boost resilience to global economic shocks.
Publication(World Bank, Washington, DC, 2013-04) Dall'Olio, Andrea ; Iootty, Mariana ; Kanehira, Naoto ; Saliola, FedericaThis paper tests whether structural or firm-specific characteristics contributed more to (labor) productivity growth in the European Union between 2003 and 2008. It combines the Amadeus firm-level data on productivity and firm characteristics with country-level data describing regulatory environments from the World Bank's Doing Business surveys, foreign direct investment data from Eurostat, infrastructure quality assessments from the Global Competitiveness Report, and credit availability from the World Development Indicators. It finds that among the 12 newest members of the European Union, country characteristics are most important for firm productivity growth, particularly the stock of inward foreign direct investment and the availability of credit. By contrast, among the more developed 15 elder European Union member countries, firm-level characteristics, such as industry, size, and international affiliation, are most important for growth. The quality of the regulatory environment, measured by Doing Business indicators, is importantly correlated with productivity growth in all cases. This finding suggests that European Union nations can realize significant benefits from improving regulations and encouraging inward and outward foreign direct investment.
Publication(Washington, DC: World Bank, 2022) Iootty, Mariana ; Bizhan, Asset ; Correa, Paulo G.Like many other countries, Kazakhstan’s economic growth has slowed since the 2007–09 global financial crisis. Although the slowdown reflected weaknesses in expanding labor and capital, the most striking reduction has been in productivity growth. In more recent years, total factor productivity growth has started to bounce back, albeit at a modest pace, possibly driven by the recovery in commodity prices. Although slower expansion in productivity has been a global phenomenon, Kazakhstan’s subdued productivity performance for a decade reflects more structural problems. Against this backdrop, Boosting Productivity in Kazakhstan with Micro-Level Tools: Analysis and Policy Lessons examines barriers and policy gaps that hinder productivity growth in Kazakhstan. The detailed analysis is uniquely based on first-time access to administrative firm-level data; the data for the period of 2009–18 covered 70,000 business establishments annually, corresponding to total employment of 1.6 million people. The unprecedented access to firm-level data deepened the understanding of the microeconomic dynamics and drivers of aggregate productivity growth and enabled identification of a wide-ranging set of policy recommendations to boost aggregate productivity growth.
Publication(Washington, DC: World Bank, 2021-06-11) Pop, Georgiana ; Iootty, Mariana ; Bruhn, Miriam ; Ruiz Ortega, ClaudiaState aid impact evaluation is new in Romania. Given its novelty, the ex post evaluation seeks to provide evidence on how effective state aid has been, on whether state aid distorted competition, and on the implications for state aid design and implementation. These aspects are fundamental to improving the efficiency of public spending and minimizing market distortions. The ex post evaluation focuses on three state aid schemes to assess whether and to what extent the aid objectives have been fulfilled, and it measures their spillover effects as well as the effects on competition outcomes. Selected based on the their importance in supporting key policy objectives, their design and complexity, and the instruments used, the three schemes include de minimis aid implemented by the Romanian Counter-Guarantee Fund and designed to incentivize access to finance for micro, small, and medium enterprises (MSMEs); state aid granted by the Ministry of Public Finance to support regional development and job creation; and state aid provided by the Ministry of European Funds to support the upgrade and modernization of research, development, and innovation. The analysis finds evidence that the state aid schemes met their objectives without distorting competition significantly. The results for the de minimis scheme to incentivize access to finance for micro, small, and medium enterprises showed that the scheme increased employment and turnover of beneficiary firms and reduced the probability of aided firms closing. The state aid scheme to support regional development and job creation fulfilled its main objectives, with robust evidence of a positive direct effect on employment creation and, to some extent, on investment. Regarding the state aid scheme to support the upgrade and modernization of research, development, and innovation, the analysis found evidence that the scheme helped promote research and development efforts.
Will the Crisis Affect the Economic Recovery in Eastern European Countries? Evidence from Firm Level Data( 2010-04-01) Correa, Paulo ; Iootty, MarianaTwo sources of growth are firm learning and innovation. Using a unique panel data for 1,686 firms in six countries (Bulgaria, Hungary, Latvia, Lithuania, Romania, and Turkey), this paper applies panel data estimators and Juhn-Murphy Pierce decomposition in order to identify the effects of the global economic crisis on sales growth of innovative and young enterprises in Eastern European countries. The results show that innovative and young firms were significantly more affected by the crisis than non innovative and older enterprises. The authors interpret these results as an indication that the achievement of pre-crisis growth rates in those countries may be difficult.