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East Asia and Pacific

What are business aspirations worth in developing countries?

Bilal Zia's picture

Small-scale entrepreneurship is widespread in developing countries, yet very few of these entrepreneurs are successful in growing their businesses beyond initial levels. Many constraints play a role, including financial, technical, and informational barriers. Yet, even when these barriers are lifted in experimental studies, we do not see the type of growth one would expect if these constraints were truly binding. In addition, many of the interventions studied, especially those targeting managerial and informational barriers, often suffer from low program take-up.

U.S. market access generated jobs in manufacturing and services and reduced income inequality in Vietnam

Ha Minh Nguyen's picture

Amid the recent rise of populism and protectionism, the labor market implications of trade have increasingly moved to the center of political and economic debates. Autor et al (2013), in an influential paper, find that U.S. regions that are more exposed to import-competing manufacturing industries witnessed larger declines in manufacturing employment and wages. 

The economic outlook for East Asia and the Pacific in six charts: Strong growth, easing moderately

Ekaterine T. Vashakmadze's picture
Growth in the EAP region strengthened marginally to 6.4 percent in 2017, 0.2 percentage point higher than expected. The region continued to be a major driver of global growth, accounting for more than a third of it in 2017, mostly because of China’s significant contribution. Regional growth is projected to gradually slow to 6.2 percent on average in 2018-20. That is broadly in line with previous forecasts, with the structural slowdown in China outweighing a modest further cyclical pickup in the rest of the region.

Didn’t make it to our trade research conference? Here’s what you missed

Ana Fernandes's picture

What would bring together the China trade shock, road blocks in the West Bank, and the Belt and Road initiative? The 6th Annual IMF-World Bank-WTO Trade Research Conference, at which staff of the three institutions presented the results of twelve research projects. 
 
The Conference is over, but the website lives on, and here you can find preliminary versions of papers. To whet your appetite, here are three examples of research that use creative methodologies and raise provocative questions.

Spending on bling: What explains the demand for status goods?

Martin Kanz's picture

When people spend money, their decisions are often influenced by the desire to signal wealth and attain social status. This insight is not entirely new – even Adam Smith, in the Wealth of Nations, complains that his contemporaries spend too much on “status goods” that are not a necessity of life, and which they most likely can’t afford.

Social signaling motives in consumption seem to be present in many different economic settings, and may in fact be so widespread that they can be linked to larger economic phenomena, such as inequality and persistent poverty. Studies using household surveys show, for example, that the poor around the world spend a strikingly large share of their income on visible expenditures, which may have negative implications for asset accumulation, household indebtedness, and investments in education.The same pattern has been shown to hold for ethnic minorities in the Unites States – so much so, that a recent study argues that differences in conspicuous consumption may account for as much as one third of the wealth gap between Whites and African Americans

Global Economic Prospects in 10 Charts: June 2017

Ayhan Kose's picture
Also available in: Chinese

The World Bank forecasts that global economic growth will strengthen to 2.7 percent in 2017 as a pickup in manufacturing and trade, rising market confidence, and stabilizing commodity prices allow growth to resume in commodity-exporting emerging market and developing economies.  Growth in advanced economies is expected to accelerate to 1.9 percent in 2017, a benefit to their trading partners. Amid favorable global financing conditions and stabilizing commodity prices, growth in emerging market and developing economies as a whole will pick up to 4.1 percent this year from 3.5 percent in 2016. Nevertheless, substantial risks cloud the outlook. These include the possibility of greater trade restriction, uncertainty about trade, fiscal and monetary policy, and, over the longer term, persistently weak productivity and investment growth.

Download the June 2017 Global Economic Prospects report.
 
Global growth is projected to strengthen to 2.7 percent in 2017, as expected. Emerging market and developing economies are anticipated to grow 4.1 percent – faster than advanced economies.
 
Global Growth

Charting a new path to income convergence

Margaret McMillan's picture

Developing countries made considerable gains during the 2000s, resulting in a large reduction in extreme poverty and a significant expansion of the middle class. More recently that progress has slowed—and the prognosis is for more of the same, given an environment of lackluster global trade, a lack of jobs coupled with skills mismatches, greater income inequality, unprecedented population aging in richer countries, and youth bulges in the poorer ones. As a result, developing countries are unlikely to close the development gap anytime soon.

Gender-based violence, power and norms

Annamaria Milazzo's picture

Many laws prohibiting a range of gender violence have been ineffective in reducing the prevalence of harmful practices.  This is mainly due to the influential role that deeply rooted social norms—one of multiple and sometimes competing normative orders people adhere to—play in determining behavior and outcomes.

Gender-based violence (GBV) reflects power inequalities between women and men. Women and girls are more commonly the victims of GBV—a manifestation of power imbalance tilted in favor of men that characterizes many, mostly patriarchal, cultures around the world.  Collectively shared norms about women’s subordinate role in society and violence against them can also perpetuate the power imbalance. In the upcoming World Development Report 2017 we discuss how norms can reinforce existing power inequalities in society and how change can happen.

How has China moved-up the global value chains?

Hiau Looi Kee's picture
The last few decades have witnessed the rise of global value chains (GVC), with factories being set up in the faraway countries, such as China, Vietnam, Bangladesh and Mexico, producing and shipping products for the US and EU markets.  Typically, being part of a GVC entails firms importing materials and intermediate products for further processing before exporting to other countries.  This implies that, together with the engagement of GVCs, these countries most likely face the inevitable decline in their domestic value added embedded in their exports (see Figure 1).  In other words, less value

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