Journal Issue: World Bank Research Observer, Volume 17, Issue 2

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17
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2
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Trade, Foreign Direct Investment, and International Technology Transfer : A Survey
(World Bank, 2002-09-01) Saggi, Kamal
What role does trade play in international technology transfer? Do technologies introduced by multinational firms diffuse to local firms? What kinds of policies have proved successful in encouraging technology absorption from abroad and why? Using these questions as motivation, this article surveys the recent trade literature on international technology transfer, paying particular attention to the role of foreign direct investment. The literature argues that trade necessarily encourages growth only if knowledge spillovers are international in scope. Empirical evidence on the scope of knowledge spillovers (national versus international) is ambiguous. Several recent empirical plant-level studies have questioned earlier studies that argued that foreign direct investment has a positive impact on the productivity of local firms. Yet at the aggregate level, evidence supports the view that foreign direct investment has a positive effect on economic growth in the host country.
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Income Risk, Coping Strategies, and Safety Nets
(World Bank, 2002-09-01) Dercon, Stefan
Poor rural and urban households in developing countries face substantial risks, which they handle with risk-management and risk-coping strategies, including self-insurance through savings and informal insurance mechanisms. Despite these mechanisms, however, vulnerability to poverty linked to risk remains high. This article reviews the literature on poor households use of risk-management and risk-coping strategies. It identifies the constraints on their effectiveness and discusses policy options. It shows that risk and lumpiness limit the opportunities to use assets as insurance, that entry constraints limit the usefulness of income diversification, and that informal risk-sharing provides only limited protection, leaving some of the poor exposed to very severe negative shocks. Public safety nets are likely to be beneficial, but their impact is sometimes limited, and they may have negative externalities on households that are not covered. Collecting more information on households vulnerability to poverty through both quantitative and qualitative methods can help inform policy.
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Deregulating the Transfer of Agricultural Technology : Lessons from Bangladesh, India, Turkey, and Zimbabwe
(World Bank, 2002) Gisselquist, David; Nash, John; Pray, Carl
Many transition and developing economies have reduced direct public involvement in the production and trade of seed and other agricultural inputs. This trend creates opportunities for farmers to realize improved access to inputs, including technology from international private research. Unfortunately, input regulations often derail these opportunities by blocking private entry and the introduction of private technology. This study looks at the experience in Bangladesh, India, Turkey, and Zimbabwe to see whether regulations make a difference in agriculture and input industries in developing economies. In all countries, companies and farmers responded to regulatory reforms by introducing and adopting more new technology and by expanding the production, trade, and use of inputs. The increased use of private technology has brought higher yields and incomes, allowing farmers and consumers to reach higher levels of welfare. These results challenge governments to open their regulatory systems to allow market entry and the introduction of private technology through seeds and other inputs.
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The Gender Implications of Public Sector Downsizing : The Reform Program of Vietnam
(World Bank, 2002-09-01) Rama, Martín
Using data from Vietnam, this article describes several types of analysis that can be conducted before launching a major downsizing operation to identify possible gender effects. It draws several conclusions about Vietnam s downsizing reforms. First, although women s prospects of obtaining salaried jobs following displacement from state-owned enterprise worsened as a result of recent reforms, they are likely to improve in the near future. Second, reforms are associated with a sharp decline in the gender gap in earnings, both in and outside the state sector. Third, overstaffing is greatest in sectors in which most employees are men, such as construction, mining, and transportation; it is much less prevalent in sectors in which women dominate the work force, such as footwear, textiles, and garments. Fourth, training, and assistance programs to help redundant workers reveal no evidence of strong gender bias. Fifth, severance packages based on a multiple of earnings are more favorable to men, whereas lump sum packages favor women.
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How Research Can Assist Policy : The Case of Economic Reforms in Uganda
(World Bank, 2002-09-01) Mackinnon, John; Reinikka, Ritva
Research has had a powerful impact on policy in Uganda, affecting the climate of opinion, improving the quality of the policy debate, and helping focus public policy and intervention on poverty reduction. Uganda s successful use of knowledge and research to help set public policy priorities demonstrates that even a poor post conflict country can, in a relatively short period of time, create an effective information base and feedback mechanisms for decision making.
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