Horizontal Equity of Taxation : Citizen Beliefs and Policy Preferences

Horizontal inequity occurs when employees and self-employed workers with the same income end up with different effective tax burdens, due to the difficulty of enforcing taxes on the self-employed. Based on detailed micro-tax simulation models integrated with household surveys in 25 developing countries, this paper shows that tax systems incur large horizontal inequities in practice, and reforms that improve vertical equity worsen horizontal equity by a comparable amount. In-person and online surveys across multiple countries reveal widespread concern about horizontal equity. Randomized information treatments heighten this concern but do not shift tax preferences toward addressing horizontal ..

The World Bank > Documents & Reports

Even the Announcement Matters ? The Effect of the Carbon Border Adjustment Mechanism on Exporter Behavior

This paper studies how firms respond to the announcement of the European Union’s Carbon Border Adjustment Mechanism (CBAM), focusing on Turkish manufacturing firms with substantial exposure to the EU market. Exploiting variation in firms’ pre-announcement exposure to CBAM-covered exports, the paper estimates difference-in-differences models using detailed firm–product–destination trade data. The findings show that more exposed firms exhibit relatively lower post-announcement exports of CBAM-covered products to the European Union (EU) and relatively higher exports to non-EU destinations, consistent with a market-switching response. These differences are economically meaningful: a one..

The World Bank > Documents & Reports

Weather Shocks and Unintended Fertility in Sub-Saharan Africa

This paper examines the effects of drought shocks on unintended pregnancies across 18 countries in Sub-Saharan Africa. The results show that drought exposure increases the likelihood of unintended pregnancy by one to two percentage points (about 3 to 6 percent), depending on the specification. The analysis further finds that children born from unintended pregnancies are less likely to receive antenatal care, less likely to be delivered in health facilities, and more vulnerable to illness. The findings also show that unintended pregnancies have implications for women’s labor market outcomes. Overall, the findings indicate that drought shocks intensify women’s economic and reproductive vul..

The World Bank > Documents & Reports

Are Robots Shifting Foreign Direct Investments ?

Industrial robots are rapidly changing global production processes, with large implications for patterns of foreign direct investments. The impact is ambiguous a priori. On the one hand, robotization may boost foreign direct investments since firms that have invested in robots increase their demand for complementary inputs. On the other hand, robotization may dampen foreign direct investments since firms have weaker incentives to outsource selected inputs and/or tasks. This paper finds that robotization at home boosts foreign direct investments, based on bilateral foreign direct investments data from 2003–21 across 65 countries. To uncover the underlying mechanism, the effect on foreign di..

The World Bank > Documents & Reports

Family Matters : Social Networks and Women’s Economic Empowerment

Social networks are a critical driver of women’s economic empowerment, particularly in contexts where women face mobility and normative constraints. Using baseline data from an impact evaluation in Nigeria, this study examines the association between social capital and labor market outcomes among vulnerable women, including those affected by HIV, survivors of gender-based violence, and caregivers of children living with HIV or exposed to sexual violence. Logistic and OLS models along with the community fixed effects are used to estimate the associations between social network characteristics and four labor market outcomes. The study finds that women with larger networks—specifically, hav..

The World Bank > Documents & Reports

Does Automatic Loan Approval Reduce Gender Bias in SME Lending ?

This paper examines whether automatic credit approval can reduce gender bias in lending to small and medium-sized enterprises. The study team collaborated with a bank in Peru that piloted a new screening tool to generate psychometric credit scores. Applicants who scored above a predefined threshold were automatically offered a loan with a size tied to their score, and those below the threshold were assessed by a loan officer. Using a regression discontinuity design and credit bureau data, the paper compares loan offers and loan sizes of female and male applicants within a narrow window around the automatic approval threshold. The results show that female applicants below the threshold are le..

The World Bank > Documents & Reports

Fine-Scale Spatial Disaggregation of Statistical Data via Graph Neural Networks

Fine-grained spatial data are critical for informed decision-making in domains ranging from economic planning to environmental management. However, many statistics are only available for coarse administrative units, necessitating techniques for fine-scale spatial disaggregation. This paper introduces a graph neural network (GNN) based framework for disaggregating aggregated indicators to a finer spatial resolution. The GNN approach leverages graph representations of spatial units to incorporate both feature information and spatial relationships, addressing challenges of heterogeneity and data sparsity. The approach also adopts the H3 hierarchical hexagonal indexing system to define fine-reso..

The World Bank > Documents & Reports

Survey-to-Survey Poverty Monitoring under Economic Shocks : The Role of Proxies and Flexible Nonlinear Learners

In many low-income countries, consumption surveys are too infrequent to track poverty during economic shocks. Survey-to-survey imputation can fill this gap, but its reliability depends on whether prediction models estimated in one period remain valid in another. This paper develops a formal identification framework for the transportability of survey-to-survey estimators and shows that failures during crises arise primarily from missing shock-responsive information rather than from insufficient model flexibility. When such information is omitted, both linear models and flexible learners yield biased poverty estimates. When fast-changing proxy variables that track unobserved welfare changes ar..

The World Bank > Documents & Reports

Project-Level Learning Lowers the Conflict Cost Premium of Energy Access

Energy access in conflict-affected states carries a cost premium — yet there is little evidence of its magnitude and whether it can, at least partially, be mitigated. Analyzing 923 World Bank–financed solar photovoltaic installations across the Republic of Yemen between 2019 and 2025, this analysis finds that project-level learning systematically reduces conflict-linked costs, including in the most volatile regions. The aggregate price decomposition attributes 16.8 percentage points of cost reduction to project-level factors. More generally, a Shapley Machine Learning decomposition of project-level cost variation confirms that project-level learning is the most powerful predictor, explai..

The World Bank > Documents & Reports

Quality report on Balance of Payments, International Investment Position, International Trade in Services and Foreign Direct Investment statistics

This report assesses the quality, consistency, and accessibility of balance of payments, international investment position, international trade in services, and foreign direct investment statistics...

Eurostat > Statistical Reports

데일리 오피니언 제660호(2026년 4월 3주) - 지방선거 결과 기대

한국갤럽 > 갤럽리포트

Testing for Market Power in Agricultural Land Markets : Evidence from Ukraine

Agricultural land markets are critical for structural transformation but may, as farm sizes increase, also be affected by operators exercising market power. To explore this little-studied issue, this paper uses administrative data for agricultural land lease transactions from 2021 to 2024 in Ukraine. Tenant fixed effect regressions indicate that, compared to village councils where it controlled less than 10 percent of the land before a transaction, the same tenant paid 4 or 7.5 percent ($3.66 or $6.86 per ha and year) less rent. Robustness checks using land sales prices or the length of lease terms yield similar results. Policy implications for Ukraine and beyond are discussed.

The World Bank > Documents & Reports

Completing the AfCFTA Mosaic : Liberalization of Trade in Services

This paper uses the Services Trade Policy Database and Services Trade Restrictions Index to assess services trade liberalization in Africa, building on previous World Bank studies of the African Continental Free Trade Area. The focus is on refining reductions of non-tariff measures in services using sector- and mode-specific policy shocks. The results suggest that reducing sectoral restrictions could boost services exports by 4 percent overall in 2035 and by 14 percent within Africa, with increased imports from outside the region. Key manufacturing exports like textiles and processed foods are also projected to grow, reflecting the role of services as inputs across industries. Conservative s..

The World Bank > Documents & Reports

Counteracting the Impact of Societal Aging on Income Inequality : A Case Study of Malaysia

This paper analyzes the effect of societal aging on income inequality in Malaysia, to date and in the coming decades. The study starts from the hypothesis that, all things equal, aging exerts upward pressure on inequality (Deaton and Paxson (1994, 1995)). Drawing on nationally representative household survey data over the past two decades, the study finds evidence in support of this hypothesis in Malaysia. This picture becomes even sharper when projecting inequality levels for the years when Malaysia is forecast to reach aged (2045) and super-aged (2056) status. Estimates show that between 2022 and 2056, overall inequality of individual incomes could rise by as much as 13 percent due to agin..

The World Bank > Documents & Reports

Foreign Tariffs as Catalysts for Reform ? The Potential Development Dividend

This note examines the implications of recent trade policy changes for developing countries. After the United States–China bilateral tariffs increased in 2018–19, the exports of a few third countries increased but the development benefits were less significant. The tariffs that were more widely applied starting in 2025 could hurt developing economies, especially in sectors that are more exposed and face higher tariffs. However, the costs of foreign protection would be more than offset if countries responded with comprehensive reforms of their own trade policies. So far, some countries have concluded bilateral agreements and initiated limited domestic reforms. If tariff liberalization wer..

The World Bank > Documents & Reports

Policy Pulse : Sensing the Sentiment toward Climate Policies in the Public Sphere

Public sentiment toward climate policies plays a critical role in their adoption, implementation, and effectiveness. This paper introduces a novel methodology for assessing policy sentiment from news media articles in 2017–23, applied here to climate policies. The methodology focuses on two policy instruments that have received significant public opposition in recent years: carbon taxes and emissions trading schemes. The results show that the sentiment scores for each article align with intuitive notions of positive and negative sentiment, and average sentiment scores at the country level are reasonably well aligned with public opinion surveys associated with each instrument. Sentiment tim..

The World Bank > Documents & Reports

Foreign Demand Shocks and Domestic Value Added : Firm-Level Evidence from Viet Nam

Recent shifts in global trade patterns have received a lot of attention, but the implications of these shifts for domestic value added in exports (DVAR) have so far been over-looked. This paper documents substantial increases in Viet Nam’s aggregate DVAR since 2018, reversing a long declining trend. Analysis using matched firm-level and customs data reveals that idiosyncratic US demand shocks had large positive effects on firm-level DVAR and output. Firms respond to the shocks by exporting more to both US and non-US markets, and their labor productivity increases, both that are consistent with the economies of scale. Firms also increase their use of domestic materials and reduce reliance o..

The World Bank > Documents & Reports

The World Is Developing at Its Slowest Pace in 75 Years

Understanding and accurately measuring societal progress is crucial for guiding policy and development efforts. This paper introduces a new method to measure societal progress that is comparable across different stages of development, time periods, and indicators. The paper utilizes this method to analyze six key indicators of development with cross-country data from 1950 and finds that the world is developing at its slowest pace in 75 years. This slowdown has already caused large development losses and will cause global poverty to increase if it continues. The paper identifies 54 countries that are more than 100 years away from reaching standards associated with graduating to developed coun..

The World Bank > Documents & Reports

Raising Children Alone in Latin America and the Caribbean : Strong Mothers and Weak Social Assistance

Studies across countries find that single-mother households are socioeconomically disadvantaged. However, the heterogeneity of these households is regularly overlooked in the literature, with lone-mother households (with only one female adult) frequently undifferentiated from households in which a single mother lives with other adults. Using the Socio-Economic Database for Latin America and the Caribbean, this paper examines lone-mother households across 15 countries, focusing on the prevalence of lone motherhood, socioeconomic characteristics and outcomes, and the role of social assistance in improving the economic well-being of these households. Among households with children, the share of..

The World Bank > Documents & Reports