Development

Service-sector reforms enhance manufacturing productivity: Evidence from Indonesia

Victor Duggan, Sjamsu Rahardja, Gonzalo Varela, 22 May 2013

The ‘manufacturing matters’ movement has gained prominence on the policy agenda even as the nature of manufacturing continues to morph. This column discusses new research showing that opening service sectors to competition and foreign direct investment can be a powerful conduit for productivity gains in manufacturing. The gains depend on both the types of reforms and the specific services sectors in which these are implemented.

Why reforms fail: Political-economy forces and agriculture in Africa

M. Ataman Aksoy, Bernard Hoekman, 15 May 2013

Increasing agricultural productivity and expanding the agribusiness industry in sub-Saharan Africa is critical for poverty reduction, food security and economic growth. Numerous recent national, regional and G20-level programmes have been initiated to that effect. This column discusses new research showing that political economy forces have a major bearing on the success or failure of agricultural reform programmes. To be successful, policymakers must bear in mind the extent to which existing elites are affected by the redistribution associated with increasing returns for rural producers.

Multinationals assist domestic suppliers? Perhaps think again

Olivier N. Godart, Holger Görg, Christiane Krieger-Boden, 29 April 2013

The positive spillovers from multinationals to the productivity of their host-country suppliers are empirically well established. Usually, it is assumed that multinationals aid their suppliers by voluntarily sharing knowledge and cooperating with them. This column argues the spillovers might rather result from blunt pressure by the multinationals, forcing their suppliers to adopt new practices and to adapt to new standards.

Measuring financial development

Martin Cihák, Asli Demirgüç-Kunt, Erik Feyen, Ross Levine, 25 April 2013

Is there too much financial development, or too little? Can economists even measure it well? This column argues that commonly used measures of financial development are poor proxies of what the financial system actually does, presenting a new worldwide database that aims to fill some of the gaps. There needs to be a stronger link between the theory and measurement of financial development.

Gender equality and economic growth: A framework for policy analysis

Pierre-Richard Agénor, Otaviano Canuto, 24 April 2013

Reducing gender inequity will require a wide range of policies. This column describes a framework for quantifying the growth effects of gender policies in developing economies and, by applying an overlapping generations model to Brazil, shows that gender policy is likely to produce tangible economic results, but only in the long term.