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Handling volatile capital flows--the Indian experience

Poonam Gupta's picture
Capital flows to emerging economies are considered to be volatile. Influenced as much by global liquidity and risk aversion as by economic conditions in receiving countries, capital flows move in a synchronous fashion across emerging economies. There are periods of rapid capital inflows, fueling credit booms and asset price inflation; followed by reversals when exchange rates depreciate, equity prices decline, financial volatility increases, and GDP growth and investment slows down. These periods of extreme flows have unintended financial and real implications for the recipient countries.

Can paternity leave benefit working women in developing countries?

Asif Islam's picture
In recent years, a spate of articles came out proclaiming the benefits of paternity leave. One article by the New York Times cited a study in Sweden that stated that mother’s future earnings increased on an average of 7 percent for every month of leave the father took. The same article cited another study in the U.S.

Has e-government improved governance? Not yet.

Zahid Hasnain's picture
Digital connectivity is viewed by many in technology and development circles as central to achieving the 17 Sustainable Development Goals (SDG’s). Luminaries supporting the Connectivity Declaration are among them.

What can we learn from land and financial allocation in India?

Ejaz Ghani's picture

Factor Allocation and Growth
 
A central challenge for developing countries is to promote growth by reducing the misallocation of factors of production—labor, capital and land. While there may not be such a thing as a perfectly efficient factor allocation, evidence shows that there are huge gains in growth from reducing factor misallocation. Growth requires more efficient firms to produce more output and use more factors of production. Our past work has shown that land allocation is barely better than random at best, and probably worse than random in India. Put differently, low productivity firms have better access to land and buildings than high productivity firms. Indeed, land and buildings misallocation appears to be at the root of much of the misallocation of output and it accounts for a large share of the observed differences in output per worker in the manufacturing sector.  

How land rights institutions affect the path to productive urbanization

Jevgenijs Steinbuks's picture
The industrial revolution in Western Europe and North America soon triggered both increased urbanization and accelerated economic development, placing countries in these regions onto paths of sustained income growth over the following three centuries. Economists have long pointed to the crucial role that favorable institutions played in triggering and supporting these historic changes. Surprisingly, however, very little attention has been given to the role played by property rights in land in the interrelated processes of urbanization and growth.
 

How persistent is poverty in the short run?

Joao Pedro Azevedo's picture

Poverty is often measured using repeated cross-sectional surveys that provide a snapshot of the poverty status of a given household at a particular point in time. Such designs call for interviewing different respondents in each round, and because individuals or households are only observed once, we cannot always tell whether their poverty status is enduring or transitory.

Education is the topic for the new World Development Report

Kaushik Basu's picture
Education is central to improving human welfare and to achieving the goals of eliminating extreme poverty and boosting shared prosperity.  Schooling was recognized as vital to achieving the MDGs, and it remains front and center in the SDGs.  Yet there has never been a World Development Report (WDR) on education.  

Is Poverty Seasonal?

Joao Pedro Azevedo's picture
Many countries measure poverty using annualized survey data generated on the basis of a one-time “snapshot” of household consumption. Such designs gather information for a single period of reference of 30, 15 or 7 days, collected using either a consumption diary or an interview recall approach. More frequent data collection is certainly possible, but because welfare questionnaires are very long, and it is expensive conduct multiple field visits, reporting poverty dynamics at greater frequency is rare in practice.

Live longer, work longer?

Harun Onder's picture

Imagine yourself on a comfy seat like the ones they give to ministers. But do not get too cozy as you are about to make a difficult decision. Population is aging in your country, and there simply is not enough resources to finance the pension benefits of the retirees. What should you do?

The conventional wisdom suggests that you should increase the retirement age. The argument goes as follows. People live six years longer in retirement now than half a century ago. Therefore, using some of those additional years for work is not completely unfair. By increasing the retirement age, you could increase the number of contributors while decreasing that of beneficiaries at the same time. This should provide an effective remedy for the imbalances in pension system accounts.

Global Economic Prospects January 2016: Regional integration and spillovers

Derek H. C. Chen's picture
A key risk to global growth in 2016 is that a number of emerging markets slow simultaneously. Following a decade of deepening integration among emerging markets and developing countries, weakness in a few major emerging markets could spread to set back activity across the emerging market and developing country world. The January 2016 Global Economic Prospects report examines regional integration and the possibility of spillovers from growth shocks at the global and regional level.

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