03. Journals

1,616 items available

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http://hdl.handle.net/10986/2210

These are journal articles published in World Bank journals as well as externally by World Bank authors.

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Cutting Special Interests by the Roots: Evidence from the Brazilian Amazon

(Elsevier, 2022-10-01) Braganca, Arthur ; Dahis, Ricardo

Government policies may impact economic outcomes directly but also indirectly through effects on political incentives. This paper examines the effects of the PPCDAm, a centralized set of environmental policies that effectively raised the expected cost of illegal deforestation, on the behavior of a powerful special-interest group operating in the Brazilian Amazon: farmers. Using different identification strategies, we document that municipalities governed by farmer politicians experienced larger declines in deforestation, greenhouse gas (GHG) emissions, and violence than municipalities governed by other politicians after this set of policies was implemented. Our findings suggest the PPCDAm had indirect and persistent effects on political incentives, amplifying its impact on environmental and social outcomes.
Minimum Age Regulation and Child Labor: New Evidence from Brazil

(Published by Oxford University Press on behalf of the World Bank, 2019-12-19) Bargain, Olivier ; Boutin, Delphine

This study presents new evidence on the effects of minimum age regulations obtained from a natural experiment. In 1998, a constitutional reform in Brazil changed the minimum working age from 14 to 16. The reform was the legislative counterpart of a broad set of measures taken by a government strongly committed to eliminating child labor. This article investigates the role of the minimum working age in this context. The setting allows for improvements upon past approaches based on comparing employment rates of children at different ages. A discontinuity in treatment is exploited, namely the fact that only children who turned 14 after the enactment date (mid-December 1998) are banned from work. According to regression discontinuity and difference-in-discontinuity designs, the null hypothesis of no overall effect of the ban cannot be rejected. Throughout the methods and specifications, an employment effect in a confidence interval of [−0.06,0.03] (in percentage points) is found. A detailed heterogeneity analysis is performed and provides suggestive evidence of diminishing child labor trends in regions characterized by higher labor inspection intensity, which is interpreted as a trace of there being a law. However, contrary to what has been claimed in recent studies, the law seems not to have produced sizeable effects overall, at least in the short run. Power calculations and extensive sensitivity checks support these conclusions.
The Causal Impacts of Child Labor Law in Brazil: Some Preliminary Findings

(Published by Oxford University Press on behalf of the World Bank, 2016-04-10) Piza, Caio ; Portela Souza, Andre

This paper investigates the causal impact of the change in law of December 1998 that increased the minimum legal age of entry into the labor force from 14 to 16. The authors used a difference-in-differences (DD) approach to estimate the impact of this law change on labor force participation rates as a whole, as well as for the formal and informal sectors separately. The results showed that the ban reduced participation rates for boys by 4 percentage points and that this effect was mostly driven by the informal sector. The authors found no effect on girls.
A Multicentre Randomized Controlled Trial of the Efficacy and Safety of Single-Dose Praziquantel at 40 mg/kg vs. 60 mg/kg for Treating Intestinal Schistosomiasis in the Philippines, Mauritania, Tanzania and Brazil

( 2011) Olliaro, P. L. ; Vaillant, M. T. ; Belizario, V. J. ; Lwambo, N. J. ; Ouldabdallahi, M. ; Pieri, O. S. ; Amarillo, M. L. ; Kaatano, G. M. ; Diaw, M. ; Domingues, A. C. ; Favre, T. C. ; Lapujade, O. ; Alves, F. ; Chitsulo, L.

BACKGROUND: Praziquantel at 40 mg/kg in a single dose is the WHO recommended treatment for all forms of schistosomiasis, but 60 mg/kg is also deployed nationally. METHODOLOGY/PRINCIPAL FINDINGS: Four trial sites in the Philippines, Mauritania, Tanzania and Brazil enrolled 856 patients using a common protocol, who were randomised to receive praziquantel 40 mg/kg (n = 428) or 60 mg/kg (n = 428). While the sites differed for transmission and infection intensities (highest in Tanzania and lowest in Mauritania), no bias or heterogeneity across sites was detected for the main efficacy outcomes. The primary efficacy analysis was the comparison of cure rates on Day 21 in the intent-to-treat population for the pooled data using a logistic model to calculate Odd Ratios allowing for baseline characteristics and study site. Both doses were highly effective: the Day 21 cure rates were 91.7% (86.6%-98% at individual sites) with 40 mg/kg and 92.8% (88%-97%) with 60 mg/kg. Secondary parameters were eggs reduction rates (ERR), change in intensity of infection and reinfection rates at 6 and 12 months. On Day 21 the pooled estimate of the ERR was 91% in both arms. The Hazard Ratio for reinfections was only significant in Brazil, and in favour of 60 mg/kg on the pooled estimate (40 mg/kg: 34.3%, 60 mg/kg: 23.9%, HR = 0.78, 95% CI = [0.63;0.96]). Analysis of safety could not distinguish between disease- and drug-related events. 666 patients (78%) reported 1327 adverse events (AE) 4 h post-dosing. The risk of having at least one AE was higher in the 60 than in the 40 mg/kg group (83% vs. 73%, p<0.001). At 24 h post-dosing, 456 patients (54%) had 918 AEs with no difference between arms. The most frequent AE was abdominal pain at both 4 h and 24 h (40% and 24%). CONCLUSION: A higher dose of 60 mg/kg of praziquantel offers no significant efficacy advantage over standard 40 mg/kg for treating intestinal schistosomiasis caused by either S. mansoni or S. japonicum. The results of this study support WHO recommendation and should be used to inform policy decisions in the countries.
Does Formality Improve Micro-firm Performance? Evidence from the Brazilian SIMPLES Program

( 2011) Fajnzylber, Pablo ; Maloney, William F. ; Montes-Rojas, Gabriel V.

This paper exploits an extensive Brazilian micro-enterprise survey and the 1996 introduction of a business tax reduction and simplification scheme (SIMPLES) to examine three questions. First, do high tax rates and complex tax regulations really constitute a barrier to the formalization of micro-firms? Second, does formalization improve firm performance measured along several dimensions, including revenues, employment and capital stock? Third, what are the channels through which this occurs? We find that SIMPLES led to a significant increase in formality in several dimensions. Moreover, newly created firms that opt for operating formally show higher levels of revenue and profits, employ more workers and are more capital intensive (only for those firms that have employees). The channel through which this occurs is not access to credit or contracts with larger firms. Rather, it appears that the lower cost of contracting labor leads to adopting production techniques that involve a permanent location and a larger paid labor force.
Brazil's Growth Performance: A Comparative Perspective to the Asian Giants

( 2011) Nazmi, Nader ; Revilla, Julio E.

We compare economic efficiencies in Brazil, India, and China, where economic efficiency measures the gap between potential and actual output for a given input combination and technological factor. We use stochastic production frontier models to measure the contributions of factors of production and technology to growth and estimate non-positive error terms that capture production inefficiencies in each country. The results suggest that China and India had relatively inefficient production in the early 1980s but have since improved production efficiency substantially. In the same period, production efficiency in Brazil has lagged those of China and India. The gap between Brazil's production efficiency and those of its Asian peers has narrowed in recent years. However, production remains more efficient in China and India, supporting more rapid growth in these countries relative to Brazil.
Corporate Governance at the World Bank and the Dilemma of Global Governance

(World Bank, 2010-08-30) Kaja, Ashwin ; Werker, Eric

Most major decisions at the World Bank are made by its Board of Executive Directors. While some countries enjoy the opportunity to serve on this powerful body, most countries rarely, if ever, get that chance. This gives rise to the question: Does board membership lead to higher funding from the World Bank's two main development financing institutions, the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). Empirical analysis shows that developing countries serving on the board can expect more than double the funding from the IBRD as countries not on the board. In absolute terms, countries on the board receive an average $60 million “bonus” in IBRD loans, an amount that rises in years when IBRD loans are in high demand, particularly for countries in the most influential seats. This effect is more likely driven by informal rules and norms in the boardroom than by the power of the vote itself. No significant effect is found in IDA funding. These results point to challenges of global governance through representative institutions.
Banking on Politics

(World Bank, 2010-08-30) Braun, Matías ; Raddatz, Claudio

New data are presented for a large number of countries on how frequently former high-ranking politicians become bank directors. Politician-banker connections at this level are relatively rare, but their frequency is robustly correlated with many important characteristics of banks and institutions. At the micro level, banks that are politically connected are larger and more profitable than other banks, despite being less leveraged and having less risk. At the country level, this connectedness is strongly negatively related to economic development. Controlling for this, the analysis finds that the phenomenon is more prevalent where institutions are weaker and governments more powerful but less accountable. Bank regulation tends to be more pro-banker and the banking system less developed where connectedness is higher. A benign, public-interest view is hard to reconcile with these patterns.
Nuclear Power and Sustainable Energy Policy : Promises and Perils

(World Bank, 2010-08-02) Kessides, Ioannis N.

The author examines the challenges and opportunities of nuclear power in meeting the projected large absolute increase in energy demand, especially electricity, throughout the industrialized and developing world, while helping to mitigate the threat of climate change. A significant global nuclear power deployment would engender serious risks related to proliferation, safety, and waste disposal. Unlike renewable sources of energy, nuclear power is an unforgiving technology because human lapses and errors can have ecological and social impacts that are catastrophic and irreversible. However, according to some analysts, advances in the design of nuclear reactors may have reduced their associated risks and improved their performance. Moreover, while a variety of renewable energy sources (hydro, wind, modern biomass, solar) will play important roles in the transition to a low-carbon economy, some analysts perceive that nuclear power is the only proven technology for generating electricity that is both largely carbon-free, not location specific (as with wind, hydro and solar), and amenable to significant scaling up. Thus given the projections of threats from climate change, and if the considerable strain experienced by world energy markets in recent years is a harbinger of things to come, then there is a rationale for examining the pros and cons of nuclear power as a supply option within low-carbon strategies. It should be noted that despite the emerging centrality of climate change and security of supply in the energy policy debate, nuclear power is still viewed with a great deal of skepticism and in fact continues to elicit considerable opposition. Indeed the views on nuclear power in the context of sustainable energy policy are highly divergent. A thorough evaluation of all aspects of the issue is warranted.
To Mitigate or to Adapt : Is that the Question? Observations on an Appropriate Response to the Climate Change Challenge to Development Strategies

(World Bank, 2010-08-02) Shalizi, Zmarak ; Lecocq, Franck

Climate change is a new and important challenge to development strategies. In light of the current literature a framework for assessing responses to this challenge is provided. The presence of climate change makes it necessary to at least review development strategies—even in apparently nonclimate-sensitive and nonpolluting sectors. There is a need for an integrated portfolio of actions ranging from avoiding emissions (mitigation) to coping with impacts (adaptation) and to consciously accepting residual damages. Proactive (ex ante) adaptation is critical, but subject to risks of regrets when the magnitude or location of damages is uncertain. Uncertainty on location favors nonsite-specific actions, or reactive (ex post) adaptation. However, some irreversible losses cannot be compensated for. Thus, mitigation might be in many cases the cheapest long-term solution to climate change problems and the most important to avoid thresholds that may trigger truly catastrophic consequences. To limit the risks that budget constraints prevent developing countries from financing reactive adaptation—especially since climate shocks might erode the fiscal base—“rainy-day funds” may have to be developed within countries and at the global level for transfer purposes. Finally, more research is required on the impacts of climate change, on modeling the interrelations between mitigation and adaptation, and on operationalizing the framework.