This paper provides new evidence on the study of income mobility in Ecuador over the 2004-2011 period. We use longitudinal data of individual income tax returns to measure income mobility both at the top and middle of the income distribution. We found three main empirical results: first, income mobility in Ecuador is low for top incomes, the probability of remaining in the top 1% after one year is nearly 65%. Second, there is an important degree of mobility in the rest of the income distribution. Individuals are more likely to experience upward mobility than downward mobility, especially those in the middle-income deciles. Third, regression results suggest that having a high school degree is associated with upward income movements.
{"title":"Income Mobility in Ecuador. New Evidence from Personal Income Tax Returns","authors":"Liliana Cano","doi":"10.2139/ssrn.2688576","DOIUrl":"https://doi.org/10.2139/ssrn.2688576","url":null,"abstract":"This paper provides new evidence on the study of income mobility in Ecuador over the 2004-2011 period. We use longitudinal data of individual income tax returns to measure income mobility both at the top and middle of the income distribution. We found three main empirical results: first, income mobility in Ecuador is low for top incomes, the probability of remaining in the top 1% after one year is nearly 65%. Second, there is an important degree of mobility in the rest of the income distribution. Individuals are more likely to experience upward mobility than downward mobility, especially those in the middle-income deciles. Third, regression results suggest that having a high school degree is associated with upward income movements.","PeriodicalId":324969,"journal":{"name":"ERN: Latin America & the Caribbean (Development) (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131287176","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Spanish Abstract: El presente articulo tiene como objetivo determinar el efecto de la tasa de cambio real sobre el empleo industrial de Colombia y sobre 60 de sus sectores industriales, para el periodo 2000-2010. Para ello, se realiza una revision de la literatura mas relevante sobre el tema y, mediante el Metodo Generalizado de Momentos sugerido por Arellano y Bond (1991) y la informacion de la Encuesta Anual Manufacturera del Departamento Administrativo Nacional de Estadistica, se establece el efecto de la tasa de cambio real sobre el empleo manufacturero. Las diferentes especificaciones indican que una apreciacion de la tasa de cambio real contrae el empleo manufacturero del pais. De manera puntual, se encontro que una apreciacion de 1.0% reduce el empleo industrial entre 0.49% y 0.59%. En cuanto al efecto por industrias, la regresion base advierte que una apreciacion de la tasa de cambio real conlleva a caidas en el empleo en diez sectores industriales y a aumentos en siete de ellos. English Abstract: This paper aims to determine the effect of real exchange rate on industrial employment in Colombia and 60 of their industrial sectors for the period 2000- 2010. To do this, a review of the relevant literature is made and using the Generalized Method suggested by Arellano and Bond (1991) Moments and information from the Annual Manufacturing Survey by the National Bureau of Statistics, the effect is set the real exchange rate on manufacturing employment. The different specifications indicate that an appreciation of the real exchange rate contract manufacturing employment in the country. Timely manner, it was found that an appreciation of 1.0% reduces manufacturing employment between 0.49% and 0.59%. As for the effect on industries, the base regression warns that an appreciation of the real exchange rate leads to declines in employment in ten industrial sectors and increases in seven of them.
{"title":"Tasa De Cambio Real y Empleo Industrial: Un Análisis Empírico Para Colombia, 2000-2010 (Real Exchange Rate and Industrial Employment: An Empirical Analysis for Colombia, 2000-2010)","authors":"José Peláez, Lya Sierra","doi":"10.2139/SSRN.2643716","DOIUrl":"https://doi.org/10.2139/SSRN.2643716","url":null,"abstract":"Spanish Abstract: El presente articulo tiene como objetivo determinar el efecto de la tasa de cambio real sobre el empleo industrial de Colombia y sobre 60 de sus sectores industriales, para el periodo 2000-2010. Para ello, se realiza una revision de la literatura mas relevante sobre el tema y, mediante el Metodo Generalizado de Momentos sugerido por Arellano y Bond (1991) y la informacion de la Encuesta Anual Manufacturera del Departamento Administrativo Nacional de Estadistica, se establece el efecto de la tasa de cambio real sobre el empleo manufacturero. Las diferentes especificaciones indican que una apreciacion de la tasa de cambio real contrae el empleo manufacturero del pais. De manera puntual, se encontro que una apreciacion de 1.0% reduce el empleo industrial entre 0.49% y 0.59%. En cuanto al efecto por industrias, la regresion base advierte que una apreciacion de la tasa de cambio real conlleva a caidas en el empleo en diez sectores industriales y a aumentos en siete de ellos. English Abstract: This paper aims to determine the effect of real exchange rate on industrial employment in Colombia and 60 of their industrial sectors for the period 2000- 2010. To do this, a review of the relevant literature is made and using the Generalized Method suggested by Arellano and Bond (1991) Moments and information from the Annual Manufacturing Survey by the National Bureau of Statistics, the effect is set the real exchange rate on manufacturing employment. The different specifications indicate that an appreciation of the real exchange rate contract manufacturing employment in the country. Timely manner, it was found that an appreciation of 1.0% reduces manufacturing employment between 0.49% and 0.59%. As for the effect on industries, the base regression warns that an appreciation of the real exchange rate leads to declines in employment in ten industrial sectors and increases in seven of them.","PeriodicalId":324969,"journal":{"name":"ERN: Latin America & the Caribbean (Development) (Topic)","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-05-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126450797","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We identify interbank (i.e. non-collateralized) loans from the Colombian large-value payment system by implementing Furfine’s method. After identifying interbank loans from transactional data we obtain the interbank rates and claims without relying on financial institutions’ reported data. Contrasting identified loans with those consolidated from financial institutions’ reported data suggests the algorithm performs well, and it is robust to changes in its setup. The weighted average rate implicit in transactional data matches local interbank rate benchmarks strictly. From identified loans we also build the interbank claims network. The three main outputs (i.e. the interbank loans, the rates, and the claims networks) are valuable for examining and monitoring the money market, for contrasting data reported by financial institutions, and as inputs in models of financial contagion and systemic risk.
{"title":"Identifying Interbank Loans, Rates, and Claims Networks from Transactional Data","authors":"Carlos León, Jorge Cely, Carlos Cadena","doi":"10.2139/ssrn.2603178","DOIUrl":"https://doi.org/10.2139/ssrn.2603178","url":null,"abstract":"We identify interbank (i.e. non-collateralized) loans from the Colombian large-value payment system by implementing Furfine’s method. After identifying interbank loans from transactional data we obtain the interbank rates and claims without relying on financial institutions’ reported data. Contrasting identified loans with those consolidated from financial institutions’ reported data suggests the algorithm performs well, and it is robust to changes in its setup. The weighted average rate implicit in transactional data matches local interbank rate benchmarks strictly. From identified loans we also build the interbank claims network. The three main outputs (i.e. the interbank loans, the rates, and the claims networks) are valuable for examining and monitoring the money market, for contrasting data reported by financial institutions, and as inputs in models of financial contagion and systemic risk.","PeriodicalId":324969,"journal":{"name":"ERN: Latin America & the Caribbean (Development) (Topic)","volume":"80 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-04-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126217200","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2015-03-01DOI: 10.5089/9781484303184.001
L. Jácome
This paper provides a brief historical journey of central banking in Latin America to shed light on the debate about monetary policy in the post-global financial crisis period. The paper distinguishes three periods in Latin America’s central bank history: the early years, when central banks endorsed the gold standard and coped with the collapse of this monetary system; a second period, in which central banks turned into development banks under the aegis of governments at the expense of increasing inflation; and the “golden years,” when central banks succeeded in preserving price stability in an environment of political independence. The paper concludes by cautioning against overburdening central banks in Latin America with multiple mandates as this could end up undermining their hard-won monetary policy credibility.
{"title":"Central Banking in Latin America: From the Gold Standard to the Golden Years","authors":"L. Jácome","doi":"10.5089/9781484303184.001","DOIUrl":"https://doi.org/10.5089/9781484303184.001","url":null,"abstract":"This paper provides a brief historical journey of central banking in Latin America to shed light on the debate about monetary policy in the post-global financial crisis period. The paper distinguishes three periods in Latin America’s central bank history: the early years, when central banks endorsed the gold standard and coped with the collapse of this monetary system; a second period, in which central banks turned into development banks under the aegis of governments at the expense of increasing inflation; and the “golden years,” when central banks succeeded in preserving price stability in an environment of political independence. The paper concludes by cautioning against overburdening central banks in Latin America with multiple mandates as this could end up undermining their hard-won monetary policy credibility.","PeriodicalId":324969,"journal":{"name":"ERN: Latin America & the Caribbean (Development) (Topic)","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116701998","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Daniel W. Gingerich, Virginia Oliveros, Ana Corbacho, Mauricio Ruiz-Vega
An influential body of scholarship argues that corruption behaves as a selffulfilling prophecy. The idea of this work is that levels of corruption emerge endogenously as a result of a society-wide coordination game in which ther individual returns to corrupt behavior are a function of how disposed towards corruption the other members of society are perceived as being. An empirical implication of this logic is that if one were to exogenously perturb beliefs about societal levels of corruption upward, willingness to engage in corruption should increase as a consequence. The current paper evaluates this claim by utilizing an information experiment embedded in a large-scale household survey conducted in the Gran Area Metropolitana (GAM) of Costa Rica from October 2013 to April 2014 (n=4200). Changes in beliefs about corruption were induced via the random assignment of an informational display depicting the increasing percentage of Costa Ricans who have experienced or directly observed an act of corruption (from 2006 to 2011). The paper finds that, on average, assignment to this display (relative to the control condition) increased the probability that a respondent would be willing to pay a bribe to a police officer by approximately 0. 04 to 0. 08, thereby providing supporting evidence for the self-fulfilling prophecy hypothesis.
{"title":"Corruption as a Self-Fulfilling Prophecy: Evidence from a Survey Experiment in Costa Rica","authors":"Daniel W. Gingerich, Virginia Oliveros, Ana Corbacho, Mauricio Ruiz-Vega","doi":"10.2139/ssrn.2581394","DOIUrl":"https://doi.org/10.2139/ssrn.2581394","url":null,"abstract":"An influential body of scholarship argues that corruption behaves as a selffulfilling prophecy. The idea of this work is that levels of corruption emerge endogenously as a result of a society-wide coordination game in which ther individual returns to corrupt behavior are a function of how disposed towards corruption the other members of society are perceived as being. An empirical implication of this logic is that if one were to exogenously perturb beliefs about societal levels of corruption upward, willingness to engage in corruption should increase as a consequence. The current paper evaluates this claim by utilizing an information experiment embedded in a large-scale household survey conducted in the Gran Area Metropolitana (GAM) of Costa Rica from October 2013 to April 2014 (n=4200). Changes in beliefs about corruption were induced via the random assignment of an informational display depicting the increasing percentage of Costa Ricans who have experienced or directly observed an act of corruption (from 2006 to 2011). The paper finds that, on average, assignment to this display (relative to the control condition) increased the probability that a respondent would be willing to pay a bribe to a police officer by approximately 0. 04 to 0. 08, thereby providing supporting evidence for the self-fulfilling prophecy hypothesis.","PeriodicalId":324969,"journal":{"name":"ERN: Latin America & the Caribbean (Development) (Topic)","volume":"45 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117156049","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Social scientists have long considered what mechanisms underlie repeated exchange. Three mechanisms have garnered the majority of this attention: formal contracts, relational contracts, and relationally embedded social ties. Although each mechanism has its virtues, all three exhibit a common limitation: an inability to fully explain the continuation and stability of intertemporal exchange between individuals and organizations in the face of change. Drawing on extensive quantitative data on approximately 450,000 microfinance loans made by a microfinance institution in Mexico from 2004 to 2008 that include random assignment of loan officers, this research proposes the concept of ”relational styles” to help explain how repeated exchange is possible in the face of personnel change. We define relational styles as systematically reoccurring patterns of interaction employed by social actors within and across exchange relationships—in this paper, between microfinance clients and loan officers. We show that relational styles that are consistent facilitate a clear understanding of expectations and thus exchange. We also demonstrate that consistency in the relational styles followed by successive loan officers mitigates the negative impact of a broken loan officer–client tie. This paper thus proposes and empirically tests a social mechanism based on relational styles that often accompanies relational embeddedness, but which may also serve as a partial substitute for it. This paper was accepted by Jesper Sorensen, organizations.
{"title":"A Matter of (Relational) Style: Loan Officer Consistency and Exchange Continuity in Microfinance","authors":"Rodrigo Canales, J. Greenberg","doi":"10.1287/mnsc.2015.2167","DOIUrl":"https://doi.org/10.1287/mnsc.2015.2167","url":null,"abstract":"Social scientists have long considered what mechanisms underlie repeated exchange. Three mechanisms have garnered the majority of this attention: formal contracts, relational contracts, and relationally embedded social ties. Although each mechanism has its virtues, all three exhibit a common limitation: an inability to fully explain the continuation and stability of intertemporal exchange between individuals and organizations in the face of change. Drawing on extensive quantitative data on approximately 450,000 microfinance loans made by a microfinance institution in Mexico from 2004 to 2008 that include random assignment of loan officers, this research proposes the concept of ”relational styles” to help explain how repeated exchange is possible in the face of personnel change. We define relational styles as systematically reoccurring patterns of interaction employed by social actors within and across exchange relationships—in this paper, between microfinance clients and loan officers. We show that relational styles that are consistent facilitate a clear understanding of expectations and thus exchange. We also demonstrate that consistency in the relational styles followed by successive loan officers mitigates the negative impact of a broken loan officer–client tie. This paper thus proposes and empirically tests a social mechanism based on relational styles that often accompanies relational embeddedness, but which may also serve as a partial substitute for it. This paper was accepted by Jesper Sorensen, organizations.","PeriodicalId":324969,"journal":{"name":"ERN: Latin America & the Caribbean (Development) (Topic)","volume":"77 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125019211","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Manfred Enrique Grautoff, Fernando Chavarro Miranda
Spanish Abstract: La respuesta heterodoxa del gobierno Venezolano a las distorsiones creadas en su mercado agrava su situación económica. Esto es evidente en la penalización del mercado de bonos de intercambio no regulado que muchas empresas han utilizado como su principal fuente de divisas. En lugar de abordar la causa del problema (sobrevaluación del tipo de cambio), la respuesta del gobierno incentiva la fuga de capitales al reducir la demanda interna en emisión de deuda. Los problemas de liquidez aumentan el riesgo de la expropiación —sin indemnización— de los activos del sector privado. En el sector financiero los principales bancos se mantienen capitalizados mientras las instituciones más pequeñas presentan problemas económicos. Esto refleja una falta de aplicación de las directivas reguladoras y una injerencia política en la supervisión. El gasto se incrementa debido al aumento de los costos del sector público vía salarios (que representan la tercera parte del gasto del gobierno central). Esto se traduce en una ampliación del déficit, hasta del 3,7 % del Producto Interno Bruto (PIB), para 2011.
English Abstract: The unorthodox response of the Venezuelan government to the distortions created in its market aggravates its economic situation. This is evident in the penalization of the nonregulated exchange bonds market that many companies have used as their main source of foreign exchange. Instead of tackling the cause of the problem (overvaluation of the exchange rate), the response of the government has been to encourage the flight of capitals by reducing internal demand in debt emission. Liquidity problems increase the risk of expropriation — without indemnification — of private sector assets. In the financial sector, the most important banks continue capitalized while the smallest institutions are undergoing economic problems. This reflects the lack of application of regulatory directives and political intervention in supervision. Expense increases due to the higher public sector costs via salaries (which represent a third of central government spending). This results in expansion of the deficit up to 3.7% of Gross Domestic Product (GDP) for the year 2011.
{"title":"Estudio geoeconómico de la República Bolivariana de Venezuela (Geo-Economic Study of the Bolivarian Republic of Venezuela)","authors":"Manfred Enrique Grautoff, Fernando Chavarro Miranda","doi":"10.2139/ssrn.2814360","DOIUrl":"https://doi.org/10.2139/ssrn.2814360","url":null,"abstract":"<b>Spanish Abstract:</b> La respuesta heterodoxa del gobierno Venezolano a las distorsiones creadas en su mercado agrava su situación económica. Esto es evidente en la penalización del mercado de bonos de intercambio no regulado que muchas empresas han utilizado como su principal fuente de divisas. En lugar de abordar la causa del problema (sobrevaluación del tipo de cambio), la respuesta del gobierno incentiva la fuga de capitales al reducir la demanda interna en emisión de deuda. Los problemas de liquidez aumentan el riesgo de la expropiación —sin indemnización— de los activos del sector privado. En el sector financiero los principales bancos se mantienen capitalizados mientras las instituciones más pequeñas presentan problemas económicos. Esto refleja una falta de aplicación de las directivas reguladoras y una injerencia política en la supervisión. El gasto se incrementa debido al aumento de los costos del sector público vía salarios (que representan la tercera parte del gasto del gobierno central). Esto se traduce en una ampliación del déficit, hasta del 3,7 % del Producto Interno Bruto (PIB), para 2011.<br><br><b>English Abstract:</b> The unorthodox response of the Venezuelan government to the distortions created in its market aggravates its economic situation. This is evident in the penalization of the nonregulated exchange bonds market that many companies have used as their main source of foreign exchange. Instead of tackling the cause of the problem (overvaluation of the exchange rate), the response of the government has been to encourage the flight of capitals by reducing internal demand in debt emission. Liquidity problems increase the risk of expropriation — without indemnification — of private sector assets. In the financial sector, the most important banks continue capitalized while the smallest institutions are undergoing economic problems. This reflects the lack of application of regulatory directives and political intervention in supervision. Expense increases due to the higher public sector costs via salaries (which represent a third of central government spending). This results in expansion of the deficit up to 3.7% of Gross Domestic Product (GDP) for the year 2011.","PeriodicalId":324969,"journal":{"name":"ERN: Latin America & the Caribbean (Development) (Topic)","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-12-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130505467","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article makes three contributions to the literature. First, it provides new evidence of the impact of community monitoring interventions using a unique dataset from the Citizen Visible Audit (CVA) program in Colombia. In particular, this article studies the effect of social audits on citizens' assessment of service delivery performance. The second contribution is the introduction a theoretical framework to understand the pathway of change, the necessary building blocks that are needed for social audits to be effective. Using this framework, the third contribution of this article is answering the following questions: i) under what conditions do citizens decide to monitor government activity and ii) under what conditions do governments facilitate citizen engagement and become more accountable.
{"title":"Can Bottom-Up Institutional Reform Improve Service Delivery?","authors":"E. Molina","doi":"10.2139/ssrn.2559636","DOIUrl":"https://doi.org/10.2139/ssrn.2559636","url":null,"abstract":"This article makes three contributions to the literature. First, it provides new evidence of the impact of community monitoring interventions using a unique dataset from the Citizen Visible Audit (CVA) program in Colombia. In particular, this article studies the effect of social audits on citizens' assessment of service delivery performance. The second contribution is the introduction a theoretical framework to understand the pathway of change, the necessary building blocks that are needed for social audits to be effective. Using this framework, the third contribution of this article is answering the following questions: i) under what conditions do citizens decide to monitor government activity and ii) under what conditions do governments facilitate citizen engagement and become more accountable.","PeriodicalId":324969,"journal":{"name":"ERN: Latin America & the Caribbean (Development) (Topic)","volume":"46 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126972832","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Especially in developing countries credit constraints are often perceived as one of the most important market frictions constraining firm innovation and growth. Huge amounts of public money are being devoted to the removal of such constraints but their effectiveness is still subject to an intense policy debate. This paper contributes to this debate by analysing the effects of the Brazilian Development Bank (BNDES) loans. It finds that, before receiving BNDES support, granted firms are indeed more credit constrained than comparable non-granted firms. It also finds that BNDES support allows granted firms to achieve the same level of performance as similar non-granted firms that are not credit constrained. However, it does not allow granted firms to outperform similar non-granted ones.
{"title":"Relaxing Credit Constraints in Emerging Economies: The Impact of Public Loans on the Performance of Brazilian Manufacturers","authors":"G. Ottaviano, Filipe Lage de Sousa","doi":"10.2139/ssrn.2462195","DOIUrl":"https://doi.org/10.2139/ssrn.2462195","url":null,"abstract":"Especially in developing countries credit constraints are often perceived as one of the most important market frictions constraining firm innovation and growth. Huge amounts of public money are being devoted to the removal of such constraints but their effectiveness is still subject to an intense policy debate. This paper contributes to this debate by analysing the effects of the Brazilian Development Bank (BNDES) loans. It finds that, before receiving BNDES support, granted firms are indeed more credit constrained than comparable non-granted firms. It also finds that BNDES support allows granted firms to achieve the same level of performance as similar non-granted firms that are not credit constrained. However, it does not allow granted firms to outperform similar non-granted ones.","PeriodicalId":324969,"journal":{"name":"ERN: Latin America & the Caribbean (Development) (Topic)","volume":"32 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129826090","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper analyzes Latin America’s Financial Inclusion Gap, the difference between the average financial inclusion for Latin America and the corresponding average for a set of comparator countries. At the country level, we assess four types of obstacles to financial inclusion: macroeconomic weaknesses, income inequality, institutional deficiencies and financial sector inefficiencies. A key finding of this paper is that although the four types of obstacles explain the absolute level of financial inclusion, institutional deficiencies and income inequality are the most important obstacles behind the Latin America’s financial inclusion gap. From our analysis at the individual level, we find that there is a Latin America-specific effect of education and income. The results suggest that the effect of attaining secondary education on the probability of being financially included is significantly higher in Latin America than in its comparators. Furthermore, the difference in the probability of being financially included between the richest and the poorest individuals is significantly higher in Latin America than in comparator countries.
{"title":"Understanding Latin America's Financial Inclusion Gap","authors":"L. Rojas-Suárez, Maria Amado","doi":"10.2139/ssrn.2458138","DOIUrl":"https://doi.org/10.2139/ssrn.2458138","url":null,"abstract":"This paper analyzes Latin America’s Financial Inclusion Gap, the difference between the average financial inclusion for Latin America and the corresponding average for a set of comparator countries. At the country level, we assess four types of obstacles to financial inclusion: macroeconomic weaknesses, income inequality, institutional deficiencies and financial sector inefficiencies. A key finding of this paper is that although the four types of obstacles explain the absolute level of financial inclusion, institutional deficiencies and income inequality are the most important obstacles behind the Latin America’s financial inclusion gap. From our analysis at the individual level, we find that there is a Latin America-specific effect of education and income. The results suggest that the effect of attaining secondary education on the probability of being financially included is significantly higher in Latin America than in its comparators. Furthermore, the difference in the probability of being financially included between the richest and the poorest individuals is significantly higher in Latin America than in comparator countries.","PeriodicalId":324969,"journal":{"name":"ERN: Latin America & the Caribbean (Development) (Topic)","volume":" 22","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-05-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132075403","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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