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1. Doing Business in Bolivia: a case study in the Andean regulatory framework

Author:
Jorge Ignacio Del Castillo Machicado
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This article researches on the evolution of the business regulatory framework of Bolivia from 2006 to 2017 and its relationship with the country’s Labor productivity, Total Factor Productivity, and its Informal Economy size. To do this, it analyzes the Doing Business annual reports and standardizes each year overall score to the most recent methodology developed by the World Bank Group. Furthermore, it complements its finding with qualitative data through semi-structured interviews to key actors in the Bolivian economy. Overall, this paper finds that few steps have been taken to improve Bolivia’s Business regulatory framework from the period of 2006-2017, result in a lower rank in the Doing Business report and keeping its score constant. The lack of initiative in working towards more efficient policies, complex nature and poor adaptability of new technological practices have stagnated the improvements of business regulations along their lifecycles. As a consequence, Bolivia Total Factor Productivity, Informal Economy size and Labor productivity have shown no improvement over the last 10 years.
Topic:
Economics, Science and Technology, Labor Issues, World Bank, Regulation, and Business
Political Geography:
Latin America and Bolivia

2. Coworking Spaces in La Paz, Bolivia: Urban Effects and Potential Creation of New Opportunities for Local Economic Development

Author:
Lucas DuPriest
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper investigates the location patterns of coworking spaces, the effects of coworking spaces on the local and urban context, and coworking spaces potential opportunities for the creation of local economic development, issues that have been neglected in a Bolivian context by the existing literature. The focus of this paper is on La Paz, Bolivia’s political capital and the city in Bolivia which host the largest number of coworking spaces. The paper addresses three main questions: (1) Where are the main locations of coworking spaces in La Paz? (2) to what extent do coworking spaces generate transformative effects on the local respectively the urban scale? (e.g. physical transformations, changes in practices, community building) (3) how do coworking spaces create potential opportunities for local economic development? Desk research demonstrated that location patterns of coworking spaces are concentrated to two main commercial areas of the city, as well as to the main infrastructural and transportation axes. Field research highlighted local and urban effects, such as local community initiatives and micro-urban transformations in both spaces and practices. Lastly, field research assessed coworking spaces role in the socio-economic ecosystem. Three main typologies have been identified: the first type of coworking spaces act as “social entrepreneurship and start-up incubators” with a supportive role and closer ties to social and urban issues, the second type of coworking spaces act as “coffee and cowork incubators” providing cafés with shared workspaces, the third type of coworking spaces act as “real estate business incubators” and are mainly a commercial product responding the demand for flexible office spaces. This paper, therefore, helps to fill the gap in the literature about the location patterns of these new working spaces and their effects at different scales both in terms of spaces and practices, as well as local economic development.
Topic:
Economics, Work Culture, Urban, Local, Innovation, Economic Development, and Social Capital
Political Geography:
Latin America and Bolivia

3. The Biological Standard of Living in Urban Bolivia, 1880s – 1920s: Stagnation and Persistent Inequality

Author:
Boris Branisa, José Peres-Cajías, and Nigel Caspa
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
Based on almost 5.000 direct observations on National Identification Cards, this paper offers the first estimation of the evolution of average heights in urban Bolivia for the decades 1880s-1920s. The analysis focuses on men aged 19-50 years registered in the city of La Paz. Despite city’s growing economic importance and modernization, average heights remained stagnant around 163 cm. This level is not so different to that found in the still disperse available evidence for rural Bolivia. Furthermore, there is evidence of inequalities throughout the period under study: those men who were indigenous, illiterate or worked in manual occupations were persistently shorter than non-indigenous, literates and non-manual workers, respectively. In coincidence with recent studies on Latin America, these findings suggest that the boost in exports and the regained dynamism of the economy that took place at the onset of the 20th century were not accompanied by improvements in biological standards of living.
Topic:
Economics, History, Urban, Welfare, Indigenous, and Modernization
Political Geography:
Latin America and Bolivia

4. Setting an example? Spillover effects of Peruvian Magnet Schools

Author:
Alejandro Herrera, Mariel Bedoya, Bruno Gonzaga, and Karen Espinoza
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
In this paper we use a Multi-Cutoff Fuzzy Regression Discontinuity Design to evaluate spillover effects of students enrolled into Peruvian public magnet schools, Colegios de Alto Rendimiento (COAR), on educational outcomes of younger students in their schools of origin. Using administrative data from the Ministry of Education for 2016, we find that having at least one student admitted in a COAR school causes some negative spillover effects on math test scores of students from the following cohort. No evidence of statistically significant results is found for verbal and history test scores, nor for self-reported educational expectations. We discuss potential causes and reasons that may explain our results.
Topic:
Development, Economics, and Education
Political Geography:
Latin America and Peru

5. Targeting credit through community members

Author:
Diego A. Vera-Cossio
Publication Date:
11-2017
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
Delegating the allocation of public resources to community members is an increasingly popular form of delivering development programs and are associated with a tradeoff between improved information about potential beneficiaries and favoritism towards local elites. Unlike targeting cash transfers to the poor, the optimal targeting of credit is a more complex problem involving issues of productivity, repayment, and market responses: This paper analyzes this problem using a large-scale lending program, the Thai Million Baht Credit Fund, which decentralizes the allocation of loans to an elected group of community members, and provides three main results. First, exploiting a long and detailed panel, I recover pre-program structural estimates of household total factor productivity and find that resources from the program were not allocated to high-productivity, poor households, which is inconsistent with poverty and productive efficiency as targeting criteria. Second, using socioeconomic networks data, I show that actual targeting is strongly driven by connections to village elites and is related to lower program profitability, which suggests favoritism as a reason for mistargeting. Finally, I exploit quasi-experimental variation in the rollout of the program and uncover evidence that, in general equilibrium, informal credit markets compensate for targeting distortions by redirecting credit towards unconnected households, albeit at higher interest rates than those provided by the program. The results highlight the limitations of community-driven approaches to program delivery and the role of markets in attenuating potential targeting errors.
Topic:
Development, Economics, Microcredit, Public Sector, Local, Microeconomics, and Credit
Political Geography:
Thailand

6. Outliers in semi-parametric Estimation of Treatment Effects

Author:
Darwin Ugarte Ontiveros, Gustavo Canavire-Bacarreza, and Luis Castro Peñarrieta
Publication Date:
10-2017
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
Average treatment effects estimands can present significant bias under the presence of outliers. Moreover, outliers can be particularly hard to detect, creating bias and inconsistency in the semi-parametric ATE estimads. In this paper, we use Monte Carlo simulations to demonstrate that semi-parametric methods, such as matching, are biased in the presence of outliers. Bad and good leverage points outliers are considered. The bias arises because bad leverage points completely change the distribution of the metrics used to define counterfactuals. Whereas good leverage points increase the chance of breaking the common support condition and distort the balance of the covariates and which may push practitioners to misspecify the propensity score. We provide some clues to diagnose the presence of outliers and propose a reweighting estimator that is robust against outliers based on the Stahel-Donoho multivariate estimator of scale and location. An application of this estimator to LaLonde’s (1986) data allows us to explain the Dehejia and Wahba (2002) and Smith and Todd (2005) debate on the inability of matching estimators to deal with the evaluation problem.
Topic:
Economics, Econometrics, Methods, and Counterfactuals
Political Geography:
Global

7. An Analysis of Firm Characteristics as Earnings Determinants: The Urban Bolivia Case

Author:
Beatriz Muriel Hernández
Publication Date:
12-2016
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This article analyzes the importance of firm characteristics to explain earnings in urban Bolivia. Initially I propose a new simple theoretical model of segmented labor market where, in equilibrium, individual and firm variables jointly determine earnings at the worker level. The key for achieving this equilibrium is that workers have both specific preferences and heterogonous skills provided by years of schooling, which are in turn associated to certain firms. Given the household surveys information, I estimate two alternative earnings functions from this model, one for unsalaried workers, for which there is detailed firm data and one for salaried workers, in which sector, size and formality are used as firm proxies. I find not only that firm characteristics are fundamental determinants of earnings but that regressions that include only individual characteristics present highly overestimated coefficients.
Topic:
Development, Economics, Labor Issues, Urban, Microeconomics, and Private Sector
Political Geography:
Latin America and Bolivia