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Taxes, Misallocations, and Productivity

Misallocations of factors of production have the potential to explain a large portion of cross-country differences in productivity (Hsieh and Klenow, 2009). Yet, empirical evidence relating actual differences in firms' productivity to observable policy distortions has been scarce.

Working Paper
5 Jan 2014

Highways, Firm Productivity, and Allocative Efficiency in India

In this study of a large scale highway upgrade project in India, called the Golden Quadrilateral (GQ), Kerr, Grover and Ghani (2013) find several positive effects on the organized sector for non-nodal districts located in proximity with the GQ vis-à-vis other districts — most notably higher entry

Research Note
3 Jan 2014

Switching costs, Relationship banking and Micro, Small and Medium Enterprises formal bank credit in Zambia

Using data collected from a sample of MSMEs located in urban areas of five major districts in Zambia, this paper investigates the existence and size of switching costs among Micro, Small and Medium Enterprises (MSMEs) when borrowing formal bank credit.

Working Paper
1 Jan 2014

Misallocation, Internal Trade, and the Role of Transportation Infrastructure

Asturias, Garcia-Santana, and Ramos (2014) investigate the role of transportation infrastructure in explaining resource misallocation and income in India.

Working Paper
1 Jan 2014

The Role of Foreign Investment in Ethiopia’s Leather Value Chain

A census of formal firms in the Ethiopian leather industry reveals that the change in government policy was successful in attracting foreign direct investment in the processing of raw hides and in the manufacturing of leather products.

Research Note
3 Dec 2013

Exploring dynamics in South African firms: small firms, large firms and labour market rigidity

Firm-level survey data for the period 2005-2011 in South Africa suggest that large firms have higher rates of net job creation than small firms and that there is a relatively high reallocation of employment across South African firms.

Research Note
26 Nov 2013

Mobile Salary Payments in Afghanistan: Policy Implications and Lessons Learned

This policy paper by Blumenstock, Callen and Ghani (2013) shows, using a randomized controlled trial with a large Afghan firm, that paying salaries using mobile money instead of physical cash produces significant cost savings for the employer, boosts demand for the services of the mobile network

Working Paper
1 Nov 2013

Product Market Price Integration in Developing Countries

Widespread empirical evidence of price discrimination in markets for goods and services suggests that national markets should be viewed as segmented rather than integrated. Yet, this research is almost entirely driven by studies of price setting behaviour in developed countries.

Working Paper
1 Nov 2013

Mobile Salary Payments in Afghanistan

This research note by Blumenstock, Callen and Ghani (2013) outlines the impact of mobile salary payments on transaction costs for the employer, demand for mobile services and employees' savings.

Research Note
17 Oct 2013

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