World Bank Survey Research Articles

Facing or Retreating? Evaluating The Impact of Corruption, Financial Access, and Gender on Corporate Tax Compliance

This study investigates how corruption, financial access, and gender affect tax compliance. 52 nations' worth of World Bank Survey data from 2019 to 2023 are used in this analysis. This investigation's results demonstrate that corruption positively impacts tax compliance. The second conclusion is that money availability improves tax compliance. The conclusion is that tax compliance has no benefit from having female senior managers. The keys to increasing tax compliance are avoiding dishonest behavior, paying taxes cooperatively, and allowing businesses to obtain financing. Our study incorporates the gender of firm managers, access to financing, and corruption into a model to forecast how enterprises will comply.

Class grievances before and after the Arab uprisings

To date, analysis of the role of entrepreneurs in the Arab uprisings has been limited. We use micro-level World Bank survey data collected from Arab entrepreneurs in the manufacturing and service sectors across a range of countries to highlight entrepreneur grievances as one proxy for the role that class might have played in the Arab uprisings. We find evidence that dissatisfaction with levels of corruption was particularly high among entrepreneurs in Egypt, Syria and Yemen on the eve of the Arab uprisings, but we also find that Arab entrepreneurs throughout the region share concerns when it comes to macroeconomic and political stability, infrastructural shortcomings and worker training, all of which are key to successful development. More recent data indicate that entrepreneurs in a number of countries (some of which had regime changes, while others did not) remain concerned about the same factors. Although they varied according to size and country, entrepreneur concerns at times went against pre-conceptions concerning Arab capitalist classes and were at odds with the recommendations of international financial institutions.

Factors affecting adoption of e-procurement with electronic orders integrated systems by enterprises: evidence from World Bank survey of Saudi Arabia

Factors affecting adoption of e-procurement with electronic orders integrated systems by enterprises: evidence from World Bank survey of Saudi Arabia

What drives solar energy adoption in developing countries? Evidence from household surveys across countries

This study investigates household solar energy uptake in developing countries by combining household surveys for 11 countries with area-level data. We use data from World Bank surveys for countries in Africa, Asia, and Central America. Our probit regressions use up to 36,653 household observations and cover actual uptake rather than intentions. The main result shows that households further from capital cities are less likely to have solar home systems. Furthermore, there are strong links between assets and solar uptake across solar types such as solar home systems, solar lighting systems, and solar lanterns. This is an important finding given the small number of prior studies that use actual uptake data for developing countries and the mixed results from prior literature. We do not find evidence that households in sunnier areas are more likely to have solar home systems across countries. This study motivates policymakers to consider greater support for households far from capital cities, in sunnier regions, and with low levels of assets.

A rapid mixed-methods assessment of Libya’s primary care system

BackgroundLibya has experienced decades of violent conflict that have severely disrupted health service delivery. The Government of National Unity is committed to rebuilding a resilient health system built on a platform of strong primary care.AimCommissioned by the government, we set out to perform a rapid assessment of the system as it stands and identify areas for improvement.Design and settingWe used a rapid applied policy explanatory-sequential mixed-methods design, working with Libyan data and Libyan policymakers, with supporting interview data from other primary care policymakers working across the Middle East and North Africa region.MethodWe used the Primary Health Care Performance Initiative framework to structure our assessment. Review of policy documents and secondary analysis of WHO and World Bank survey data informed a series of targeted policymaker interviews. We used deductive framework analysis to synthesise our findings.ResultsWe identified 11 key documents and six key policymakers to interview. Libya has strong policy commitments to providing good quality primary care, and a high number of health staff and facilities. Access to services and trust in providers is high. However, a third of facilities are non-operational; there is a marked skew towards axillary and administrative staff; and structural challenges with financing, logistics, and standards has led to highly variable provision of care.ConclusionIn reforming the primary care system, the government should consolidate leadership, clarify governance structures and systems, and focus on setting national standards for human resources for health, facilities, stocks, and clinical care.

The role of formal, informal, and family credit in the business performance of young entrepreneurs in Benin

AbstractThis research estimated the impact of credit uptake (formal, informal, and family) on youth entrepreneurship performance in Benin using panel data from a World Bank survey on enterprise formalization. To address potential endogeneity and ensure the robustness of results, we employed multiple models and estimation techniques (fixed‐effects and Lewbel approach). Our results showed that, while formal credit was most important for larger firms, smaller firms benefited mainly from flexible (informal or family) credit. The impact of credit uptake was generally higher for female‐owned firms. There were also variations in uptake according to the firm owner's age. The impact of formal credit was relatively higher for older firm owners while informal credit impacted more younger owners. The findings highlight the importance of informal and family credit sources, especially for start‐ups and small firms.

The effects of bribery on the digitization of small and medium enterprises in Latin America

AbstractIn this study, we examine the effects of bribery on the digitization of small and medium enterprises (SMEs) within Latin America. We apply neo‐institutional theory as the overarching theoretical framework to establish that bribery negatively influences digitization. We propose that firm characteristics (i.e., managerial experience and firm size) affect the firm‐level relationship between bribery and digitization. We also examine how the perceived tax burden mediates the effect of bribery on digitization. Our study is both theoretically and practically relevant. Theoretically, we are among the first to explicate the direct relationship between bribery and digitization. This novel perspective extends the information systems literature to explain digitization challenges in Latin America. For managers and policymakers, we present a path towards essential digitization for Latin American SMEs. Our empirical analysis uses secondary data from a World Bank survey of 1549 Latin American SMEs conducted over three years in six countries. Our findings show that bribery negatively influences digitization while SME characteristics positively moderate this relationship. In addition, we show that the perceived tax burden mediates the effects of bribery on digitization.

Lending corruption and bank loan contracting: Cross-Country evidence

Using World Bank survey data, we document that banks extend more favorable loan terms to borrowers in countries with more lending corruption. This relation is stronger when borrowers have financing constraints but weaker in countries with stronger monitoring of foreign bank ownership or with stronger religiosity. We also find that banks in countries with high lending corruption have poor loan quality and earnings performance and are more susceptible to trouble during a financial crisis. Overall, our findings suggest that corruption “greases the wheels” for borrowers but is detrimental to bank shareholders.

Digital financial inclusion in micro enterprises: understanding the determinants and impact on ease of doing business from World Bank survey

The study aims to identify the determinants of digital financial inclusion (DFI) and its role in micro enterprises’ ease of doing business. The study is based on the World Bank’s Enterprises Survey of Micro Firms (ESM) 2022 data of 998 micro-enterprises. The variables that measure access and use of digital finance are extracted from the data. Two sets of independent variables, namely digital resource capability and firms and owners’ characteristics, are taken as explanatory variables of digital financial inclusion. Analysis of variance (ANOVA) has been applied to analyze the difference in perceived business obstacles across the micro-enterprises with and without access and use of digital finance. Further, a logistic regression model is developed to analyze the determinants of DFI. The findings of the study reveal that digital financial inclusion helps to face obstacles in business regulation and handle market externalities. Further, estimates of both the logistic regression model and marginal effects suggest that access to the internet, education, and owner experience are instrumental in digital financial inclusion among micro-enterprises. This study may be helpful for various stakeholders, such as the government, promoters of entrepreneurship, banks, and international organizations working in digital financial inclusion. The originality of the study lies in exploring the determinants of DFI among micro-enterprises, which are still unexplored in the case of India using extensive and specific micro enterprise’s data collected by the World Bank.

SMEs’ innovation and government support during the COVID-19 pandemic

PurposeThere is a need for research examining how governments and firms responded to the coronavirus disease (COVID-19) pandemic. This study investigates the interdependence between governments and innovative small and medium-sized enterprises (SMEs) during the pandemic in relation to the dynamic capabilities and resource dependence theories.Design/methodology/approachWe use World Bank survey data collected immediately before and after the COVID-19 outbreak and a generalized structural equation model to examine the mediating role of government support in the relationship between firm innovation, resilience and survival.FindingsInnovative SMEs exhibited higher resilience and a better chance of survival during the pandemic, partly due to attracting more government support.Originality/valueThis study offers a novel understanding of the government’s role in supporting innovative SMEs during the pandemic. The findings have implications for how government support policies can limit the deadweight effect and the substitution effect.

Public procurement and formal employment of small and medium sized enterprises: evidence from China

ABSTRACT Using the World Bank Survey data, this study analyzes the impact of public procurement on the formal employment of small and medium-sized enterprises (SMEs) in China. The study finds that public procurement has significantly increased the proportion of formal employment within SMEs. Mechanism analysis finds that public procurement can effectively increase the proportion of highly educated employees.

Effect of Food Storage Conditions on Shelf-Life in Uganda

Purpose: The aim of the study was to investigate effect of food storage conditions on shelf-life in Uganda
 Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
 Findings: The shelf-life of food products is influenced by factors like temperature, humidity, and microbial activity, making proper food storage crucial for combating food spoilage and waste, especially in regions with high food insecurity. A World Bank survey highlighted that low access to essential goods was primarily due to financial constraints and rising prices, with a significant portion of the population experiencing food insecurity. Recent developments in food storage include the use of natural antimicrobials, nanotechnology applications, advanced pathogen detection methods, improved storage management practices, and biotechnological processes for waste conversion. These advancements aim to extend food product shelf life, reduce spoilage, enhance food safety, and contribute to food security in Uganda.
 Unique Contribution to Theory, Practice and Policy: Arrhenius equation theory, water activity theory & oxidation theory may be used to anchor future studies on effect of food storage conditions on shelf-life in Uganda. Create user-friendly, informative food labels that clearly highlight allergen information and provide consumer-friendly guidance on reading labels. Mandate standardized allergen labeling formats and allocate funding for public awareness campaigns on allergen safety.

Statistical Trend Analysis on Infant Mortality Rate and Estimation of Live Births in Nigeria

Particularly in nations like Nigeria, the likelihood that a child may pass away before turning one is rather distressing. Infant Mortality Rate is the term used to describe this. Ending all preventable deaths of children under the age of five is goal 3.2 of the Sustainable Development Goals (SDGs). This study's foundation is the statistical analysis of Nigeria's infant mortality rate. The secondary data was gathered from the World Bank Survey, which included annual records of the infant mortality rate in Nigeria over the ten-year period from 2012 to 2021. To assess the trend and estimate the model parameters, Time Series Analysis (TREND) was the statistical method employed. The researchers used the trend to predict for the following ten years. Both the number of infant fatalities and the infant mortality rate are moving decrease, according to the trend study. This demonstrates that the Infant Mortality Rate in Nigeria steadily decreases as the live birth rate rises, yet it is unlikely that it will reach zero or be insignificant by 2032. According to the analysis, the quadratic trend model fits the data sets the best because it has the smallest error margin and an R-square value that is extremely close to 100%. According to the model developed, Nigeria's infant mortality rate is expected to continue to drop throughout the course of the following ten years. Yet, the finding is not striking enough because, in 2031, the infant mortality rate will probably still be higher than 45. Hence, if appropriate measures are not implemented, we will not be able to achieve the goal of eliminating all preventable deaths of children under the age of five and lowering new birth deaths to no more than 12 per thousand. Also, it was seen from the table and graphs that the infant mortality rate decreased more rapidly from 2016 to 2017. This shows that the Sustainable Development Goals (SDGs), which went into effect in 2016, contributed to a decrease in the infant mortality rate.

Rent-seeking in bank credit and firm R&D innovation: The role of industrial agglomeration

Employing World Bank's survey data on the Chinese business environment, we empirically investigate the role of industrial agglomeration in moderating the effect of rent-seeking in bank credit on firm R&D innovation. The results show that rent-seeking in bank credit impedes firm R&D innovation, while industrial agglomeration corrects this impeding effect, which is also robust when considering endogenous problems. Furthermore, the results show that the moderating role of industrial agglomeration in correcting the negative effect of rent-seeking in bank credit on firm R&D innovation is more prominent for SMEs, non-state firms, and firms with more severe financial constraints. These findings suggest that the spatial agglomeration of industries can effectively alleviate the suppression effect of rent-seeking in credit corruption on firm R&D innovation, highlighting ways to promote firm R&D innovation in China's financially repressive environment.

The Impact of Digital Transformation on Manufacturing-Enterprise Innovation: Empirical Evidence from China

The industrial sector is now undergoing digital revolution and upgrade, and it is of strategic significance to study how enterprise digitalization affects enterprise innovation. This paper develops a theoretical model of how digital transformation affects innovation in manufacturing enterprises, based on the resource-based view, network-embeddedness theory, and resource-complementarity theory. It then tests the mechanism and boundary conditions of the model, using data from a World Bank survey of Chinese enterprises. The study reveals how the degree of e-commerce embeddedness might partially mediate the effect of digital transformation on the innovation of manufacturing companies. Managerial human capital positively moderates the effect of digital transformation on manufacturing enterprises’ independent-R&D investment and product-innovation output. Employee human capital significantly and positively moderates the effect of digital transformation on manufacturing enterprises’ product-innovation output, while negatively moderating the effect of digital transformation on manufacturing enterprises’ cooperative-R&D investment. The conclusions can expand the relevant theoretical research on digital transformation and enterprise innovation, and also provide practical enlightenment for the digital transformation and upgrading of manufacturing enterprises.

Impact of information and communication technologies on corporate energy intensity: evidence from cross-country micro data

Using a sample of manufacturing enterprises from the World Bank Survey during the period from 2006 to 2020, this study explores the impact of information and communication technologies (ICT) on corporate energy intensity and its mechanisms. Empirical results show that ICT adoption significantly improves the energy intensity of manufacturing enterprises in emerging and developing countries; a change in the standard deviation of ICT adoption can contribute 22.58% of the difference in corporate energy intensity. On the one hand, ICT adoption intensifies market competition and reduces product price markups, leading manufacturing enterprises to reduce investment in energy conservation. On the other hand, ICT adoption is complementary to energy and can promote energy input to replace traditional factors such as labor and capital, thereby increasing corporate energy intensity. The market competition effect and factor substitution effect account for 14.96% and 73.71% of the total effect. This study also confirms the Solow Productivity Paradox in ICT adoption, leading to the failure of the productivity mechanism for ICT to reduce energy intensity.

Entertainment Spending and Capturing Value from Innovation in Chinese Firms

ABSTRACTThis study examines how Chinese firms capture value from their innovations. We propose that relationship-building through business entertainment may be helpful. In particular, wining and dining key stakeholders, including clients, suppliers, distributors, and government officials, can help firms gain access to complementary resources necessary for commercializing their innovations, facilitating capturing value from innovations. However, business entertainment is less effective in regions with relatively developed market-supporting institutions, including factor markets and legal institutions. The analysis results of archival data and data from a World Bank survey of Chinese firms support all the above arguments.

Digital Education: Lithuania among Other European Union States

Digital learning has become an everyday experience for a significant part of the population during a pandemic, regardless of their technical and psychological readiness. Both the more and less technologically advanced countries have faced the inevitable need for large-scale deployment of digital learning. This paper presents an assessment of the development of digital learning in Lithuania and the EU countries in 2019, i.e., before the pandemic began. The evaluation is carried out using the Index of Readiness for Digital Lifelong Learning, developed by the Center for European Policy Studies (CEPS) using official indicators and expert evaluation.Despite the growing number of studies aimed at assessing the digital divide in modern society and in education in particular, there is still a lack of empirical material to shed light on the link between the extent of digitalization, its determinants (such as national governance in promoting digitalization), and changes in learning outcomes caused by digitalization. The findings from the CEPS study presented in the paper are the first attempt to move beyond the assessment of the prevalence of learning digitalization in different European countries, taking a holistic view of digitalisation-induced changes in learning outcomes and participation with a special focus on digital learning policy as an important component of digitalisation development.The aim of this article is to assess the digital learning situation in Lithuania using the Index of Readiness for Digital Lifelong Learning, which was developed before the pandemic in 2019. The progress of European Union countries in developing digital learning is reviewed in the paper, based on the results of CEPS (2019) research. The Index of Readiness for Digital Lifelong Learning and the results of Lithuania’s assessment using the methodology developed by CEPS are presented here. The description of the situation in Lithuania is based on the second component of the Index titled “Institutions and policies for digital learning”.In order to qualitatively assess the country’s strategic provisions for digital learning, the method of analysis of the country’s strategic documents was applied. Public expert opinions were included into the analysis of the situation in Lithuania. An interpretation of the comparative analysis of the obtained index values is presented.Standard indicators from the Eurostat, Eurobarometer, OECD, Bertelsmann Stiftung, World Bank, and expert surveys were used to create the combined Index of Readiness for Digital Lifelong Learning. The index is constructed as a weighted average of indicators divided into three categories: learning participation and outcomes, institutions and policies for digital learning, and availability of digital learning. The assessment of the situation in the EU countries, carried out according to the developed methodology, allowed to calculate the value of the Index for each country. Lithuania ranks 11th in the overall EU-27 ranking with an Index value of 0.623.A more detailed analysis allowed us to see that the countries’ ratings can differ significantly according to the different categories of the Index. The Scandinavian countries lead in terms of learning participation and outcomes and, together with the Netherlands and Austria, in terms of availability of digital learning. Southern European countries received relatively high ratings in the Index category “institutions and policies for digital learning”, which reflects their determination to strengthen their position in the digital world. Estonia and the Netherlands also found themselves among the leaders in this category. Lithuania’s relatively high position in the list is also based on positive evaluations of the indicators of the second component of the Index (i.e., policies and institutions), while participation and learning outcomes were assessed modestly. Using the example of Lithuania, the article provides arguments in favor of why the second component of the Index should not be given.

The impact of digital transformation on female career development: dividends or divide? An empirical analysis based on the World Bank Survey Data on Chinese manufacturing companies

Information and Communications Technology (ICT) has become an important force to promote the development of enterprises, but its impact on female career development is still controversial, mainly because existing studies have not gone deep into the operational level of enterprise ICT, have not focused on the research into the use environment of ICT, and have been lacking in quantitative analysis. In this article, empirical analysis is conducted through the use of the World Bank Survey Data on Chinese Manufacturing Companies 2012 and the Chinese General Social Survey, plus the adoption of the logit model. These studies reveal that 1) the degree of enterprise informatization and the degree of IT (information technology) support can significantly promote female career development, and 2) in terms of the influence mechanism, gender culture plays an intermediary role, i.e. ICT affects female career development by promoting an equal gender culture.

The impact of financial repression on manufacturing upgrade based on fractional Fourier transform and probability

Abstract This paper proposes a method combining fractional Fourier transform (FRFT) and a high peak-to-average power ratio suppression algorithm. Calculations show that as the order of the FRFT decreases, the peak-to-average power ratio of the signal gradually decreases; combined with the suppression algorithm can further reduce the peak-to-average power ratio of the system and solve the problem of the suppression algorithm affecting system performance. At the same time, this paper uses the 2012 World Bank survey data of Chinese manufacturing enterprises to study the influence of financial repression on the selection of financing channels of manufacturing enterprises. The research results show that financial repression has a significant impact on the choice of financing channels for manufacturing enterprises, which greatly increases the proportion of informal financial financing in the operating capital of enterprises and reduces the proportion of formal financial financing. Financial repression has led to an increase in the cost of formal financial financing, making enterprises choose informal financial channels for financing. Among them, large enterprises tend to choose commercial credit in informal finance, while small and medium-sized enterprises choose private credit It is possible to choose two financing channels, which reflects the ‘scale discrimination’ characteristics of financial repression.