Human Capital Expenditure and Its Effectiveness on Multi-Program Coverage : A Policy Prioritization Investigation

This paper uses artificial intelligence-enhanced agent computing to determine how to allocate budgetary resources within a large set of heterogeneous government programs targeting human capital. The approach considers essential features of the budget allocation process: multidimensionality, interdependencies between policy issues, and the political economy of public officials' collective action. The analysis uses highly disaggregated Mexican data covering the 2016-2022 period across 49 federal government human capital programs. It focuses on how expenditure affects program coverage, defined as the share of the population with a public problem and that has access to various government benefit..

The World Bank > Documents & Reports

Assessing the Impact of Renewable versus Fossil Fuels Energy on Economic Growth : A Meta-Analysis of the Elasticity across Development Stages

This study makes a significant contribution to the expanding body of literature on the energy-growth nexus, distinguishing itself in two important ways. First, this is the first meta-analysis that systematically compares the economic growth impacts of renewable versus nonrenewable energy sources, instead of relying on aggregate energy indicators. Second, it explicitly explores the heterogeneity of these effects in the context of developing countries. These elasticities exhibit notable nonlinearity, following a U-shaped pattern across stages of development. In low-income countries, the relatively higher elasticity for both energy types likely reflects the critical need to expand access, regar..

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When Digital Nudges Nag : Evidence on Program Take-up from a WhatsApp Intervention

This paper studies a randomized controlled trial in which undocumented Venezuelan migrants in Colombia were assigned to receive informational videos via WhatsApp encouraging registration in a regularization program. The intervention backfired. Receiving a video reduced take-up by 8 percentage points, a 15 percent decline relative to the control mean. The negative effect operated through two channels. Among individuals who watched, exposure to procedural content discouraged registration. Among those who did not engage, unsolicited contact itself reduced take-up. Both effects were concentrated among individuals at the margin of the decision to participate. These findings challenge the assumpti..

The World Bank > Documents & Reports

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한국갤럽 > 갤럽리포트

Bilateral Import Demand Elasticities and Balanced Trade Protection

Recognizing that macroeconomic conditions determine aggregate trade imbalances, can tariffs eliminate bilateral trade deficits? The Balanced Trade Tariff Index (BTTI) is introduced as the uniform tariff that closes bilateral deficits while holding macroeconomic conditions fixed. The BTTI depends on bilateral, product-level import demand elasticities estimated using a translog GDP function applied to data from seven major economies. The novel elasticity estimates vary widely across importers, exporters, products, and trade directions. This heterogeneity lowers average implied tariffs relative to homogeneous-elasticity benchmarks, yet implies substantially higher tariffs are required for expor..

The World Bank > Documents & Reports

Beyond the Urban Sweet Spot : Firm-Level Evidence of Over-Agglomeration in Mongolia’s Capital

This paper provides the first firm-level assessment of agglomeration economies in Mongolia, focusing on Ulaanbaatar, the country’s dominant urban center. Using data from the 2021 Enterprise Census, the paper estimates total factor productivity for a large sample of enter-prises and examines its relationship with localization, urban diversity, and peer productivity. The results indicate robust positive agglomeration effects, alongside suggestive evidence of diminishing returns to localization consistent with an inverted U-shaped pattern. These non-linearities are most apparent in Ulaanbaatar and in manufacturing, although they prove sensitive to alternative agglomeration and productivity me..

The World Bank > Documents & Reports

Trade Diversion and Jobs : Evidence from Mexican Municipalities

This paper examines the local effects of the 2018–19 U.S.-China trade disruptions on Mexico. Combining detailed municipal-level customs data with U.S. tariff schedules, it estimates that municipalities with greater export concentration in products targeted by U.S. tariffs on China (hereafter, tariff exposure) experienced significantly larger nearshoring dividends. An increase of 1 percent in tariff exposure led to a 4.3 percent increase in municipality-level exports to the United States, with gains concentrated in northern and south-central states. These export gains translated into broad labor market improvements: total labor income rose by 5.6 percent for each 1 percent increase in tarif..

The World Bank > Documents & Reports

Does Informal Competition Reduce Firm-Provided Worker Training among Formal Manufacturing SMEs in Sub-Saharan Africa ?

This paper investigates the impact of informal competition—defined as competition faced by formal firms from informal enterprises—on the firm-provided worker training among formal manufacturing small and medium-sized enterprises. Using a representative dataset of small and medium-sized manufacturing firms in 23 Sub-Saharan African countries, a sizable negative impact is found. A one-standard-deviation increase in informal competition reduces the probability that a firm offers training to its workers by 8.7 to 12.9 percentage points, relative to the sample mean of firms that offer training of approximately 25 percent. Comparable declines are observed in the share of workers receiving trai..

The World Bank > Documents & Reports

Property Rights, Agricultural Technology Adoption, and Investment : Experimental Evidence from Mozambique

Insecure land rights and limited access to modern inputs are often seen as key constraints on smallholder investment in Sub-Saharan Africa. This paper studies both in a three-year field experiment with women farmers in Mozambique, cross-randomizing a statutory land registration intervention with a subsidized package of agricultural inputs and climate-smart agriculture training, and eliciting willingness to pay for the package at randomized prices. Demand for registration was high, but its effects were limited: it produced only a temporary gain in perceived tenure security and did not raise willingness to pay for inputs or down-stream investment. Despite gender-targeted titling, it also did n..

The World Bank > Documents & Reports

The Potential Market for Care in East Asia and Pacific

Markets and public institutions must anticipate evolving care demand driven by East Asia and the Pacific’s exceptionally rapid demographic transition. To this end, this paper develops the Care Simulation Model, a demographic model that estimates gaps in childcare and eldercare needs. By integrating publicly available demographic data, the model captures both care needs and the availability of family caregivers across life cycles and cohorts, allowing the assessment of how demographic shifts may change reliance on family-based care. The paper quantifies unmet family care needs and translates them into estimates of potential market size, defined as the share of households likely to require c..

The World Bank > Documents & Reports

Improving Student Outcomes through Adaptive Learning Platforms : Experimental Evidence from the Dominican Republic

Most students in developing countries receive grade-level instruction despite lacking prerequisite skills, a mismatch that widens learning gaps as students progress. This paper reports evidence from a randomized controlled trial across 38 classrooms and 1,333 ninth-grade students in the Dominican Republic, in which classrooms were randomly assigned to one of three arms: computer-adaptive learning (CAL) software replacing two of seven weekly mathematics hours, CAL combined with small-group tutoring, or a business-as-usual control. CAL improved test scores by 0.29–0.31 standard deviations over six months, among the larger effects documented for education technology interventions in developin..

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한국갤럽 > 갤럽리포트

Decentralization, Service Delivery, and Legitimacy : The Case of Mali

In fragile, conflict-affected, and violent contexts, decentralization is widely promoted to improve service delivery and strengthen the social contract by shifting power closer to citizens. However, empirical evidence on whether these reforms deliver in environments marked by weak state capacity and low institutional trust remains limited. This paper evaluates Mali’s Project for the Deployment of State Resources for the Improvement of Services program, which implemented performance-based conditional grants across 102 communes between 2021 and 2024. Drawing on administrative budget data and georeferenced Afrobarometer survey data, the study assesses the impacts of performance-based conditio..

The World Bank > Documents & Reports

Do Information-Based Interventions Influence Tax Compliance Differently across Men and Women ? Experimental Evidence from Ethiopia

This study investigates taxpayer responses to tax compliance interventions undertaken in collaboration with Ethiopia’s revenue authority, focusing on gender differences among business owners. The research targeted a sample of 5,408 business owners, and the interventions—letters highlighting tax obligations and civic responsibilities—were successfully implemented with 3,551 participants. The interventions involved letters emphasizing tax obligations and civic duties and were evaluated through a randomized controlled trial across diverse economic sectors and sub-city locations. Data from quantitative surveys and administrative records provided information about reported tax declarations ..

The World Bank > Documents & Reports

Transportation Infrastructure and Total Factor Productivity : Development Heterogeneity and Resilience under Adverse Shocks

Weak total factor productivity (TFP) growth has become a central concern in explaining sluggish growth performance, particularly in emerging-market and low-income economies. At the same time, constrained fiscal and investment conditions have increased the importance of using scarce public resources effectively. These conditions make it important to investigate, from a cross-country perspective, what is associated with productivity performance and what shapes productivity losses during adverse shocks. The paper examines this issue along two margins: a structural margin focused on transportation infrastructure, a public-investment-intensive form of capital that may enhance productive efficienc..

The World Bank > Documents & Reports

Federal Research Funding and STEM Education

This paper examines how federal science and engineering research funding—although intended to advance research—affects degree production and programs offered in science, technology, engineering, and mathematics (STEM). Using data from 1971–2016, the study implements a triple-difference design that exploits variation across colleges, time, and fields of study. The findings show that federal grants generate 27.4 percent of doctorates and 14.7 percent of undergraduate science, technology, engineering, and mathematics degrees, as well as 6.3 percent of doctoral programs and 3.7 percent of undergraduate programs in science, technology, engineering, and mathematics annually across 200 U.S. r..

The World Bank > Documents & Reports

The Impact of School Grants on Disadvantaged Students: Experimental Evidence from Romania

This study analyzes the impact of the Romania Secondary Education Project, which was designed to improve student retention, graduation rates and pass rates on a national end-of-high-school exam for low-achievement high schools in Romania. The program was implemented in three waves, September 2017, September 2018, and September 2020, with eligible high schools randomly assigned to each. The study exploits this staggered implementation to measure the project’s causal impacts on students. The estimates indicate that the Romania Secondary Education Project had no significant impact on (i) student preferences for attending a program high school, (ii) student retention rates, (iii) high school g..

The World Bank > Documents & Reports

Assessing The Real-World Economic Value of Weather Forecasts under Compounding Extremes : A Decision-Specific Framework

Assessing the real-world economic value of weather forecasts remains challenging, particularly in the context of high-impact extreme events. Although meteorological skill has improved substantially in recent years—driven by steady advances in physics-based models and impressive breakthroughs in artificial intelligence-based forecasting—operational evaluations still focus primarily on standard skill metrics, with limited consideration of how improvements in meteorological skill translate into economic value. This study proposes a flexible framework to assess the economic value of weather forecasts, with penalty functions that explicitly account for compounding losses as well as declining ..

The World Bank > Documents & Reports

Firm’s Preferences for Emissions Reducing Measures and Willingness to Pay for a Carbon Tax in Viet Nam

Viet Nam is committed to reducing its greenhouse gas emissions by 15.8% by 2030 and meeting its net-zero emission target by 2050. The industrial sector, including the power sector, is the primary emitter and its active participation is necessary to achieve the targets. This study uses a stated-preference survey Vietnamese firms to understand their preferences in reducing greenhouse gas emissions. The study finds that Vietnamese firms prefer to reduce their greenhouse gas emissions through improving energy efficiency, substituting fossil fuels with non-fossil fuels and changing production processes. The ranking of preferences differs across the size, type, ownership and geographical location ..

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Measuring Agency Through Psychological Constructs in Lower-Income Settings

Psychological constructs related to agency—such as the ability to set goals or feel in control—are increasingly recognized as determinants of economic outcomes and well-being. Yet validated measures are scarce outside Western, educated, industrial, rich, and democratic (WEIRD) contexts. This paper introduces four scales measuring goal-setting capacity, locus of control, generalized livelihoods self-efficacy, and agricultural self-efficacy, tested through representative and specialized surveys in Benin, Côte d'Ivoire, Kenya, Malawi, Tanzania, and Uganda. All the scales demonstrate strong psychometric properties, although locus of control shows weaker internal reliability. Five-point Like..

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The (Fiscal) Dividend of Infrastructure : Roads and Revenues in Rwanda

This paper shows that infrastructure investments enhance local tax outcomes. The analysis draws on a novel dataset combining information on the location and timing of all road upgrades in Rwanda with 12 years of administrative tax and census records, it estimates large and significant increases in tax revenues in municipalities near upgraded roads. These effects are driven by firm entry as well as land value appreciation, captured through taxes on rental income at the local level. Finally, the paper shows that although the additional revenues do not fully recover the central government’s initial investment, local municipalities’ revenues more than double within five years following the u..

The World Bank > Documents & Reports

Trade Finance Use by Heterogeneous Firms

Letters of credit are a key trade finance instrument that covers more than 10 percent of global trade, with a notably larger role in low- and middle-income economies. Studying detailed trade data from Viet Nam, this paper documents how the use of letters of credit varies with firm characteristics. The paper shows that the probability of using a letter of credit is systematically lower for younger, smaller, and foreign-owned trading firms. Importers that are less diversified or have less trading experience are more likely to use letters of credit. Firm characteristics have the strongest effects in markets where information is scarce and enforcement is weak. These patterns are consistent with ..

The World Bank > Documents & Reports