Equitable Growth, Finance, and Institutions
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Economic growth, Structural transformation, India, Development Economics, International Economics
Equitable Growth, Finance, and Institutions
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Last updated January 31, 2023
Gaurav Nayyar is a Senior Economist in the Equitable Growth, Finance and Institutions Vice Presidency at the World Bank, where he joined as a Young Professional in 2013. Previously, he was an Economics Affairs Officer in the Economic Research Division of the World Trade Organization, where he co-led the World Trade Report 2013, Factors Shaping the Future of World Trade. Gaurav’s research interests lie primarily in the areas of economic growth, structural transformation, trade, industrialization, and firm productivity, and he has published in a variety of academic journals on these issues. His previous books include Trouble in the Making? The Future of Manufacturing-Led Development (with Mary Hallward-Driemeier), and The Service Sector in India’s Development (published by Cambridge University Press). Gaurav holds a D.Phil in Economics from the University of Oxford, where he was a Dorothy Hodgkin Scholar. His other alma maters include the London School of Economics and Political Science, the University of Cambridge, and St. Stephen’s College, University of Delhi.
Publication Search Results
Now showing 1 - 10 of 12
Publication(World Bank, Washington, DC, 2021-06-21) Gu, Yunfan ; Nayyar, Gaurav ; Sharma, SiddharthLabor-intensive, export-oriented manufacturing driven by the ready-made garments industry has transformed Bangladesh's economy. But with automation, changing trade patterns and servicification reducing the importance of wage costs globally, the creation of more sustainable jobs in the manufacturing sector now needs the upgradation of firms' capabilities and technology adoption. Drawing on the World Bank's "Bangladesh Firm-level Adoption of Technology Survey", this report shows that there is significant scope to improve the manufacturing sector's performance and future prospects by promoting the adoption of better technologies in firms. It discusses how Bangladesh can achieve this aim through policies that address informational barriers to the acquisition of capabilities in firms, leverage international connectivity for technology diffusion, and strengthen key markets and institutions that underpin firms investment in technology.
Publication(World Bank, Washington, DC, 2018-10) Mendoza, Adelina ; Nayyar, Gaurav ; Piermartini, RobertaOne reason that poor people may not capture the full benefit from participation in international markets is that the goods they produce tend to be subject to relatively high trade barriers. This paper analyzes market access barriers faced by households in different income deciles by matching household survey data from India based on the industrial classification of their economic activity. Tariffs in international markets are higher, and nontariff measures more numerous, on goods produced by poor workers than on goods produced by rich workers. Tariffs faced by exporters are higher on goods produced in rural and more remote areas than on those in urban centers, on goods produced by informal enterprises than by formal ones, and on goods produced by women than by men. Furthermore, the global reduction in tariffs from 1996 to 2012 failed to ameliorate these differences. How did we get there? Efforts to protect poor workers across countries resulted in a coordination problem. Indeed, tariff protection in China and the United States is higher on goods produced by poor workers than on goods produced by rich workers. Therefore, if poor workers are employed in similar sectors, then each country's attempts to protect its poor workers by imposing higher tariffs and more nontariff measures on such goods will reduce the access of all poor workers to international markets, and thus limit the gains from trade.
Publication(World Bank, Washington, DC, 2018-02) Nayyar, Gaurav ; Kim, Kyoung YangInternal labor migration rates in India have been largely static and low in recent times compared with those in other countries. This is a cause for concern because internal migration for economic reasons can promote the agglomeration of economic activity in more productive locations and directly contribute to reducing poverty through remittances. New evidence based on the India Human Development Survey, which provides a more recent source of data compared with the Census and other household surveys, shows that labor mobility is higher than previously estimated -- the stock of labor migrants increased from 16 million in 2004-05 to 60 million in 2011–12. The absolute number of circular migrants, at more than 200 million in 2011-12, is also much higher than previously documented estimates. Tracking the same households between 2004–05 and 2011-12, empirical analysis based on the India Human Development Survey highlights several socioeconomic factors associated with the migration decision: household income, the availability of information, as well as community networks in source and destination areas. There is also a possible administrative dimension to interstate migration barriers, owing to domicile provisions for work and study, lack of portability of social benefits, and legal and other entitlements upon relocation.
Publication(World Bank, Washington, DC, 2018-09) Nayyar, Gaurav ; Cruz, Marcio ; Zhu, LinghuiThe shares of manufacturing in value added and employment across a range of developing economies peaked at lower levels of per capita income compared with their high-income, early-industrializer precursors. Based on the statistical analysis of input-output tables and firm-level data, the paper contributes to the discussion on whether this "premature deindustrialization" matters by showing that: a) the premature declining share of the manufacturing sector is largely not driven by a statistical artifice whereby what was earlier subsumed in manufacturing value added is now accounted for as service sector contributions; b) Some features of manufacturing that were thought of as uniquely special for development, such as scale economies, exports, and innovation, are increasingly shared by services sector firms. Yet, a given service subsector is unlikely to provide opportunities for productivity growth and job creation for unskilled labor simultaneously; c) Some high-productivity services serve final demand or derive demand from several sectors, while others are more closely linked to a manufacturing base.
Publication(World Bank, Washington, DC, 2020-05) Avdiu, Besart ; Nayyar, GauravThere is a crisis of demand brewing around the globe as social distancing becomes the norm to counter the COVID-19 outbreak. So, which parts of the economy are most in the line of fire? Looking at jobs that can be done at home or that require a high degree of face-to-face interactions with consumers can capture complementary but distinct mechanisms to assess this vulnerability. This paper uses data on 900 job titles from the Occupational Information Network (O*NET) database for the United States to demonstrate that there is substantial heterogeneity in vulnerability across industries, income groups, and gender. First, industries vary in whether they emphasize face-to-face interactions and home-based work and the two do not always go hand-in-hand. Second, occupations that are less amenable to home-based work are largely concentrated among the lower wage deciles. Third, a larger share of women's employment is accounted for by occupations that are intensive in face-to-face interactions.
Publication(World Bank, Washington, DC, 2021-01) Cirera, Xavier ; Cruz, Marcio ; Davies, Elwyn ; Grover, Arti ; Iacovone, Leonardo ; Lopez Cordova, Jose Ernesto ; Medvedev, Denis ; Okechukwu Maduko, Franklin ; Nayyar, Gaurav ; Reyes Ortega, Santiago ; Torres, JesicaRelying on a novel dataset covering more than 120,000 firms in 60 countries, this paper con-tributes to the debate about D policies to support businesses through the COVID-19 pandemic. While governments around the world have implemented a wide range of policy support measures, evidence on the reach of these policies, the alignment of measures with firm needs, and their targeting and effectiveness remains scarce. This paper provides the most comprehensive assessment to date of these issues, focusing primarily on the developing economies. It shows that policy reach has been limited, especially for the more vulnerable firms and countries, and identifies mismatches between policies provided and policies most sought. It also provides some indicative evidence regarding mistargeting of policies and their effectiveness in addressing liquidity constraints and preventing layoffs. This assessment provides some early guidance to policymakers on tailoring their COVID-19 business support packages and points to new directions in data and research efforts needed to guide policy responses to the current pandemic and future crises.
Publication(World Bank, Washington, DC, 2022-06) Avdiu, Besart ; Bagavathinathan, Karan Singh ; Chaurey, Ritam ; Nayyar, GauravThis paper examines the effect of tradable services growth on non-tradable services across Indian districts. The analysis uses a shift-share “Bartik-type” instrumental variable, which relies on changes in foreign demand shocks for tradable services, weighted by the initial district employment shares in tradable services. Using multiple rounds of the Indian Economic Censuses, the findings show that an increase in tradable services employment leads to an increase in non-tradable services employment and increases the number of firms in non-tradable services. The evidence suggests that this positive impact is due to an increase in consumer demand for local non-tradable services that results from the growth in tradable services employment, and not due to sectoral linkages between tradable and non-tradable services sectors. The employment impact is much larger for female workers compared to male workers, and for the number of female-owned firms relative to male-owned firms. Further, the employment impact is only significant for small non-tradable service firms.
No Thumbnail AvailablePublication( 2008) Chhibber, Ajay ; Nayyar, GauravThe aim of this paper is to analyse the cross-country variation in the growth elasticity of poverty across a sample of developing countries during the period from 1990 to 2000. In order to identify variables that may explain the cross-country variation in the growth elasticity of poverty, the paper sets up a theoretical framework. Subsequently, the explanatory power of these variables is tested empirically by panel data econometric analysis. For a sample of 52 low and middle income countries, it is found that the level of initial income inequality, credit available to the private sector, literacy, the extent of business regulations and trade openness are important determinants of the growth elasticity of poverty. Countries that reduce regulatory burdens, improve literacy, increase access to finance, undertake land reforms (asset redistribution), and provide safety nets while liberalizing trade can create more growth and ensure that it is pro-poor. The paper identifies variables (at a cross-country level) that may guide the conscious policies which create pro-poor growth.
Publication(World Bank, Washington, DC, 2018-12) Nayyar, Gaurav ; Cruz, MarcioThe traditional export-led manufacturing model provided the twin benefits of productivity gains and job creation for unskilled labor in the past. Over the past two decades, however, the peak shares of manufacturing in value added and employment across a range of developing economies occurred at lower levels of per capita income compared to their high-income, early-industrializer precursors. Looking ahead, there is a concern whether labor-saving technologies associated with Industry 4.0 -- such as robotics, the Internet of Things, and 3-D printing -- will make it even more difficult for lower-income countries to have a significant role in global manufacturing. Can services-led development be an alternative? This paper provides a conceptual framework to inform the discussion, drawing on available empirical evidence from the literature on the subject. The features of manufacturing once thought to be uniquely special for productivity growth are increasingly shared by some services that yield the benefits of scale, greater competition, and technology diffusion associated with international trade. Yet, without sufficient human capital, there are limits to how much labor can be absorbed in these service sectors, which are also highly skill-intensive. Further, while some high-productivity services largely serve final demand or derive demand from several sectors, others are more closely linked to a manufacturing base.
Publication(World Bank, Washington, DC, 2017-05) Maloney, William F. ; Nayyar, GauravGovernments are resource and bandwidth constrained, and hence need to prioritize productivity-enhancing policies. To do so requires information on the nature and magnitude of market failures on the one hand, and government’s capacity to redress them successfully on the other. The paper reviews perspectives on vertical (sectoral) and horizontal (factor markets, cluster) policies with an eye to both criteria. It first argues that the case for either cannot be made on the basis of the likelihood of successful implementation: for instance, educational and picking the winner types of policies both run the risks of capture and incompetent execution. However, the profession has been able to establish more convincing market failures for horizontal policies than for vertical policies. Most of the recent approaches to identifying failures around particular goods, the paper argues, are of limited help. Hence, for a given difficulty of execution, the former are generally to be preferred. A second critical message is that improving the quality of governance in terms of collecting information, coordination ability, and defending against capture is critical to successful implementation of productivity policies and should be central on the policy agenda.