Investment Climate Reforms and Job Creation in Developing Countries : What Do We Know and What Should We Do?
This paper reviews the literature on the role of the investment climate reforms in job creation. It finds that the current landscape of employment and private sector activity in developing countries indicates a number of potential channels through...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank Group, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/09/20177747/investment-climate-reforms-job-creation-developing-countries-know http://hdl.handle.net/10986/20335 |
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okr-10986-20335 |
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oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ABATEMENT ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FORMAL FINANCE ACCESS TO INFORMATION ADVERSE EFFECT AGGREGATE PRODUCTIVITY APPROVAL RATE BANKRUPTCY BARRIERS TO ENTRY BUSINESS ENTRY BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS BUSINESS LIFE BUSINESS OWNERS BUSINESS REGULATIONS CAPITAL INVESTMENT CHAMBERS OF COMMERCE CLIENT COUNTRY COMMUNICATION TECHNOLOGIES CONFIDENTIALITY CONGLOMERATE CONTRACT ENFORCEMENT CORPORATION CORRUPTION COUNTRY DEVELOPMENT CREATIVE DESTRUCTION CREDIT FACILITIES DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DOUBLE TAXATION EARNINGS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH EDUCATED ENTREPRENEURS EFFECTIVE USE EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL STUDIES EMPLOYEE EMPLOYERS EMPLOYMENT EFFECT EMPLOYMENT EFFECTS EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EMPLOYMENT SHARE EMPLOYMENT STATUS ENTERPRISE ZONE ENTREPRENEUR ENTREPRENEURIAL ACTIVITY ENTREPRENEURS ENTREPRENEURSHIP ENTRY BARRIER ENVIRONMENTS EXCLUSION RESTRICTION EXPANSION EXPENDITURES EXPOSURE EXPOSURES EXTREME POVERTY FEDERAL TAXES FINANCE CORPORATION FINANCIAL CRISIS FINANCIAL SERVICES FIRM DYNAMICS FIRM GROWTH FIRM LEVEL FIRM PERFORMANCE FIRM PRODUCTIVITY FIRM SIZE FIXED ASSETS FIXED COSTS FOREIGN DIRECT INVESTMENTS FOREIGN OWNERSHIP FOREIGN-OWNED FIRMS FUTURE PROSPECTS GAINFUL EMPLOYMENT GENDER HIGH-ENTRY INDUSTRIES HOUSEHOLD INCOME HOUSEHOLD SURVEY HUMAN CAPITAL HUMAN RESOURCES INCORPORATED COMPANIES INFORMAL ECONOMY INFORMAL EMPLOYMENT INFORMAL SECTOR INFORMATION ASYMMETRIES INSTITUTIONAL REFORMS INTANGIBLE INTERNATIONAL BANK INTERNATIONAL BUSINESS INTERNATIONAL FINANCE INVESTMENT CLIMATE INVESTMENT CLIMATE REFORM INVESTMENT CLIMATE REFORMS INVESTMENT DECISION INVESTMENT POLICY JOB CREATION JOB CREATION RATES JOB LOSSES JOB OPPORTUNITIES JOBS JURISDICTION JURISDICTIONS LABOR COSTS LABOR ECONOMICS LABOR FORCE LABOR MARKET LABOR MARKET POLICIES LABOR MARKET REGULATIONS LABOR MARKETS LABOR ORGANIZATION LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR REGULATION LABOR REGULATIONS LABOR SUPPLY LACK OF ACCESS LIBERALIZATION LICENSING LOCAL BUSINESS LOCAL BUSINESSES LOCAL LABOR MARKET LOCAL LABOR MARKETS LOW-INCOME COUNTRIES MACROECONOMIC POLICIES MARKET DISTORTIONS MARKET ENTRY MARKET FAILURES MEDIUM ENTERPRISE MEDIUM ENTERPRISES MICRO-ENTERPRISE MICROENTERPRISES MINIMUM WAGE MNE MULTINATIONAL MULTINATIONAL ENTERPRISES NET EMPLOYMENT NET JOB CREATION NET JOB LOSSES NEW BUSINESS NEW BUSINESSES OCCUPATIONS PARTY PLANT SIZE POLICY MAKERS POLITICAL ECONOMY POWER OUTAGE PREVIOUS SECTION PREVIOUS STUDIES PREVIOUS WORK PRIVATE SECTOR PRIVATE SECTOR ACTIVITY PRIVATE SECTOR DEVELOPMENT PRIVATE SECTOR FIRMS PRIVATE SECTOR JOBS PRODUCTION TECHNOLOGY PRODUCTIVE FIRMS PRODUCTIVITY GAP PRODUCTIVITY GROWTH PRODUCTIVITY LEVELS PROFITABILITY PROMOTION ACTIVITIES PROMOTION ACTIVITY PROPERTY OWNERSHIP PROPERTY RIGHTS PUBLIC FINANCE PUBLIC SERVICE REAL ESTATE RED TAPE REFORM PROGRAM REGIONAL INTEGRATION REGULATORS REGULATORY CONDITION REGULATORY CONSTRAINTS REGULATORY ENVIRONMENT REGULATORY ENVIRONMENTS REGULATORY REFORM REGULATORY REGIME RESEARCH AGENDA RETAIL TRADE SERVICE SECTORS SMALL FIRM SMALL FIRMS SME SOCIAL SECURITY SOURCE OF INCOME STORE STORES TAX TAX BURDEN TAX BURDENS TAX CREDIT TAX RATE TAX RATES TAX REDUCTION TAX REFORMS TAX SYSTEM TAXATION TECHNOLOGY TRANSFER TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TRANSACTION COSTS UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT INSURANCE UNINTENDED CONSEQUENCES UNSKILLED LABOR WAGE EARNER WAGES WITHHOLDING TAX WORKERS WORKING CAPITAL WORKING POOR |
| spellingShingle |
ABATEMENT ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FORMAL FINANCE ACCESS TO INFORMATION ADVERSE EFFECT AGGREGATE PRODUCTIVITY APPROVAL RATE BANKRUPTCY BARRIERS TO ENTRY BUSINESS ENTRY BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS BUSINESS LIFE BUSINESS OWNERS BUSINESS REGULATIONS CAPITAL INVESTMENT CHAMBERS OF COMMERCE CLIENT COUNTRY COMMUNICATION TECHNOLOGIES CONFIDENTIALITY CONGLOMERATE CONTRACT ENFORCEMENT CORPORATION CORRUPTION COUNTRY DEVELOPMENT CREATIVE DESTRUCTION CREDIT FACILITIES DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DOUBLE TAXATION EARNINGS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH EDUCATED ENTREPRENEURS EFFECTIVE USE EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL STUDIES EMPLOYEE EMPLOYERS EMPLOYMENT EFFECT EMPLOYMENT EFFECTS EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EMPLOYMENT SHARE EMPLOYMENT STATUS ENTERPRISE ZONE ENTREPRENEUR ENTREPRENEURIAL ACTIVITY ENTREPRENEURS ENTREPRENEURSHIP ENTRY BARRIER ENVIRONMENTS EXCLUSION RESTRICTION EXPANSION EXPENDITURES EXPOSURE EXPOSURES EXTREME POVERTY FEDERAL TAXES FINANCE CORPORATION FINANCIAL CRISIS FINANCIAL SERVICES FIRM DYNAMICS FIRM GROWTH FIRM LEVEL FIRM PERFORMANCE FIRM PRODUCTIVITY FIRM SIZE FIXED ASSETS FIXED COSTS FOREIGN DIRECT INVESTMENTS FOREIGN OWNERSHIP FOREIGN-OWNED FIRMS FUTURE PROSPECTS GAINFUL EMPLOYMENT GENDER HIGH-ENTRY INDUSTRIES HOUSEHOLD INCOME HOUSEHOLD SURVEY HUMAN CAPITAL HUMAN RESOURCES INCORPORATED COMPANIES INFORMAL ECONOMY INFORMAL EMPLOYMENT INFORMAL SECTOR INFORMATION ASYMMETRIES INSTITUTIONAL REFORMS INTANGIBLE INTERNATIONAL BANK INTERNATIONAL BUSINESS INTERNATIONAL FINANCE INVESTMENT CLIMATE INVESTMENT CLIMATE REFORM INVESTMENT CLIMATE REFORMS INVESTMENT DECISION INVESTMENT POLICY JOB CREATION JOB CREATION RATES JOB LOSSES JOB OPPORTUNITIES JOBS JURISDICTION JURISDICTIONS LABOR COSTS LABOR ECONOMICS LABOR FORCE LABOR MARKET LABOR MARKET POLICIES LABOR MARKET REGULATIONS LABOR MARKETS LABOR ORGANIZATION LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR REGULATION LABOR REGULATIONS LABOR SUPPLY LACK OF ACCESS LIBERALIZATION LICENSING LOCAL BUSINESS LOCAL BUSINESSES LOCAL LABOR MARKET LOCAL LABOR MARKETS LOW-INCOME COUNTRIES MACROECONOMIC POLICIES MARKET DISTORTIONS MARKET ENTRY MARKET FAILURES MEDIUM ENTERPRISE MEDIUM ENTERPRISES MICRO-ENTERPRISE MICROENTERPRISES MINIMUM WAGE MNE MULTINATIONAL MULTINATIONAL ENTERPRISES NET EMPLOYMENT NET JOB CREATION NET JOB LOSSES NEW BUSINESS NEW BUSINESSES OCCUPATIONS PARTY PLANT SIZE POLICY MAKERS POLITICAL ECONOMY POWER OUTAGE PREVIOUS SECTION PREVIOUS STUDIES PREVIOUS WORK PRIVATE SECTOR PRIVATE SECTOR ACTIVITY PRIVATE SECTOR DEVELOPMENT PRIVATE SECTOR FIRMS PRIVATE SECTOR JOBS PRODUCTION TECHNOLOGY PRODUCTIVE FIRMS PRODUCTIVITY GAP PRODUCTIVITY GROWTH PRODUCTIVITY LEVELS PROFITABILITY PROMOTION ACTIVITIES PROMOTION ACTIVITY PROPERTY OWNERSHIP PROPERTY RIGHTS PUBLIC FINANCE PUBLIC SERVICE REAL ESTATE RED TAPE REFORM PROGRAM REGIONAL INTEGRATION REGULATORS REGULATORY CONDITION REGULATORY CONSTRAINTS REGULATORY ENVIRONMENT REGULATORY ENVIRONMENTS REGULATORY REFORM REGULATORY REGIME RESEARCH AGENDA RETAIL TRADE SERVICE SECTORS SMALL FIRM SMALL FIRMS SME SOCIAL SECURITY SOURCE OF INCOME STORE STORES TAX TAX BURDEN TAX BURDENS TAX CREDIT TAX RATE TAX RATES TAX REDUCTION TAX REFORMS TAX SYSTEM TAXATION TECHNOLOGY TRANSFER TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TRANSACTION COSTS UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT INSURANCE UNINTENDED CONSEQUENCES UNSKILLED LABOR WAGE EARNER WAGES WITHHOLDING TAX WORKERS WORKING CAPITAL WORKING POOR Rahman, Aminur Investment Climate Reforms and Job Creation in Developing Countries : What Do We Know and What Should We Do? |
| relation |
Policy Research Working Paper;No. 7025 |
| description |
This paper reviews the literature on the
role of the investment climate reforms in job creation. It
finds that the current landscape of employment and private
sector activity in developing countries indicates a number
of potential channels through which investment climate
reforms can positively affect job creation. However,
rigorous empirical evidence is scarce and most of the
relevant studies focus on business entry reforms with a few
focusing on business taxation and investment promotion
activities. Overall, there is evidence of job creation
through business entry, tax reforms, and investment
promotion activity in developing countries. Almost all of
these evidences are from quasi-experimental studies that are
significant improvements over conventional cross-country or
cross-section panel data analysis. Still, various
endogeneity concerns in these studies cannot be ruled out
completely. In assessing job effects, future research should
provide deeper insights on the gross versus net and
short-run versus long-run job effects and general
equilibrium effects of various investment climate reforms
related to jobs, productivity, competition, and other
developmental outcomes. Another critical agenda for future
research is to shed light on which investment climate
reforms matter most for spurring the employment and
productivity growth of firms in developing countries. The
World Bank Group, in partnership with development partners
and client government countries, can play a significant role
in bridging the current knowledge gap by integrating
rigorous evaluation as an integral part of project design
and implementation, and improving data quality, particularly
through its information and communication technologies-led
private sector development reform initiatives. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Rahman, Aminur |
| author_facet |
Rahman, Aminur |
| author_sort |
Rahman, Aminur |
| title |
Investment Climate Reforms and Job Creation in Developing Countries : What Do We Know and What Should We Do? |
| title_short |
Investment Climate Reforms and Job Creation in Developing Countries : What Do We Know and What Should We Do? |
| title_full |
Investment Climate Reforms and Job Creation in Developing Countries : What Do We Know and What Should We Do? |
| title_fullStr |
Investment Climate Reforms and Job Creation in Developing Countries : What Do We Know and What Should We Do? |
| title_full_unstemmed |
Investment Climate Reforms and Job Creation in Developing Countries : What Do We Know and What Should We Do? |
| title_sort |
investment climate reforms and job creation in developing countries : what do we know and what should we do? |
| publisher |
World Bank Group, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/09/20177747/investment-climate-reforms-job-creation-developing-countries-know http://hdl.handle.net/10986/20335 |
| _version_ |
1764445061712445440 |
| spelling |
okr-10986-203352021-06-14T10:21:32Z Investment Climate Reforms and Job Creation in Developing Countries : What Do We Know and What Should We Do? Rahman, Aminur ABATEMENT ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FORMAL FINANCE ACCESS TO INFORMATION ADVERSE EFFECT AGGREGATE PRODUCTIVITY APPROVAL RATE BANKRUPTCY BARRIERS TO ENTRY BUSINESS ENTRY BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS BUSINESS LIFE BUSINESS OWNERS BUSINESS REGULATIONS CAPITAL INVESTMENT CHAMBERS OF COMMERCE CLIENT COUNTRY COMMUNICATION TECHNOLOGIES CONFIDENTIALITY CONGLOMERATE CONTRACT ENFORCEMENT CORPORATION CORRUPTION COUNTRY DEVELOPMENT CREATIVE DESTRUCTION CREDIT FACILITIES DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DOUBLE TAXATION EARNINGS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH EDUCATED ENTREPRENEURS EFFECTIVE USE EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL STUDIES EMPLOYEE EMPLOYERS EMPLOYMENT EFFECT EMPLOYMENT EFFECTS EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EMPLOYMENT SHARE EMPLOYMENT STATUS ENTERPRISE ZONE ENTREPRENEUR ENTREPRENEURIAL ACTIVITY ENTREPRENEURS ENTREPRENEURSHIP ENTRY BARRIER ENVIRONMENTS EXCLUSION RESTRICTION EXPANSION EXPENDITURES EXPOSURE EXPOSURES EXTREME POVERTY FEDERAL TAXES FINANCE CORPORATION FINANCIAL CRISIS FINANCIAL SERVICES FIRM DYNAMICS FIRM GROWTH FIRM LEVEL FIRM PERFORMANCE FIRM PRODUCTIVITY FIRM SIZE FIXED ASSETS FIXED COSTS FOREIGN DIRECT INVESTMENTS FOREIGN OWNERSHIP FOREIGN-OWNED FIRMS FUTURE PROSPECTS GAINFUL EMPLOYMENT GENDER HIGH-ENTRY INDUSTRIES HOUSEHOLD INCOME HOUSEHOLD SURVEY HUMAN CAPITAL HUMAN RESOURCES INCORPORATED COMPANIES INFORMAL ECONOMY INFORMAL EMPLOYMENT INFORMAL SECTOR INFORMATION ASYMMETRIES INSTITUTIONAL REFORMS INTANGIBLE INTERNATIONAL BANK INTERNATIONAL BUSINESS INTERNATIONAL FINANCE INVESTMENT CLIMATE INVESTMENT CLIMATE REFORM INVESTMENT CLIMATE REFORMS INVESTMENT DECISION INVESTMENT POLICY JOB CREATION JOB CREATION RATES JOB LOSSES JOB OPPORTUNITIES JOBS JURISDICTION JURISDICTIONS LABOR COSTS LABOR ECONOMICS LABOR FORCE LABOR MARKET LABOR MARKET POLICIES LABOR MARKET REGULATIONS LABOR MARKETS LABOR ORGANIZATION LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR REGULATION LABOR REGULATIONS LABOR SUPPLY LACK OF ACCESS LIBERALIZATION LICENSING LOCAL BUSINESS LOCAL BUSINESSES LOCAL LABOR MARKET LOCAL LABOR MARKETS LOW-INCOME COUNTRIES MACROECONOMIC POLICIES MARKET DISTORTIONS MARKET ENTRY MARKET FAILURES MEDIUM ENTERPRISE MEDIUM ENTERPRISES MICRO-ENTERPRISE MICROENTERPRISES MINIMUM WAGE MNE MULTINATIONAL MULTINATIONAL ENTERPRISES NET EMPLOYMENT NET JOB CREATION NET JOB LOSSES NEW BUSINESS NEW BUSINESSES OCCUPATIONS PARTY PLANT SIZE POLICY MAKERS POLITICAL ECONOMY POWER OUTAGE PREVIOUS SECTION PREVIOUS STUDIES PREVIOUS WORK PRIVATE SECTOR PRIVATE SECTOR ACTIVITY PRIVATE SECTOR DEVELOPMENT PRIVATE SECTOR FIRMS PRIVATE SECTOR JOBS PRODUCTION TECHNOLOGY PRODUCTIVE FIRMS PRODUCTIVITY GAP PRODUCTIVITY GROWTH PRODUCTIVITY LEVELS PROFITABILITY PROMOTION ACTIVITIES PROMOTION ACTIVITY PROPERTY OWNERSHIP PROPERTY RIGHTS PUBLIC FINANCE PUBLIC SERVICE REAL ESTATE RED TAPE REFORM PROGRAM REGIONAL INTEGRATION REGULATORS REGULATORY CONDITION REGULATORY CONSTRAINTS REGULATORY ENVIRONMENT REGULATORY ENVIRONMENTS REGULATORY REFORM REGULATORY REGIME RESEARCH AGENDA RETAIL TRADE SERVICE SECTORS SMALL FIRM SMALL FIRMS SME SOCIAL SECURITY SOURCE OF INCOME STORE STORES TAX TAX BURDEN TAX BURDENS TAX CREDIT TAX RATE TAX RATES TAX REDUCTION TAX REFORMS TAX SYSTEM TAXATION TECHNOLOGY TRANSFER TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TRANSACTION COSTS UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT INSURANCE UNINTENDED CONSEQUENCES UNSKILLED LABOR WAGE EARNER WAGES WITHHOLDING TAX WORKERS WORKING CAPITAL WORKING POOR This paper reviews the literature on the role of the investment climate reforms in job creation. It finds that the current landscape of employment and private sector activity in developing countries indicates a number of potential channels through which investment climate reforms can positively affect job creation. However, rigorous empirical evidence is scarce and most of the relevant studies focus on business entry reforms with a few focusing on business taxation and investment promotion activities. Overall, there is evidence of job creation through business entry, tax reforms, and investment promotion activity in developing countries. Almost all of these evidences are from quasi-experimental studies that are significant improvements over conventional cross-country or cross-section panel data analysis. Still, various endogeneity concerns in these studies cannot be ruled out completely. In assessing job effects, future research should provide deeper insights on the gross versus net and short-run versus long-run job effects and general equilibrium effects of various investment climate reforms related to jobs, productivity, competition, and other developmental outcomes. Another critical agenda for future research is to shed light on which investment climate reforms matter most for spurring the employment and productivity growth of firms in developing countries. The World Bank Group, in partnership with development partners and client government countries, can play a significant role in bridging the current knowledge gap by integrating rigorous evaluation as an integral part of project design and implementation, and improving data quality, particularly through its information and communication technologies-led private sector development reform initiatives. 2014-10-02T19:52:05Z 2014-10-02T19:52:05Z 2014-09 http://documents.worldbank.org/curated/en/2014/09/20177747/investment-climate-reforms-job-creation-developing-countries-know http://hdl.handle.net/10986/20335 English en_US Policy Research Working Paper;No. 7025 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Group, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |