World Bank

About: World Bank is a other organization based out in Washington D.C., District of Columbia, United States. It is known for research contribution in the topics: Population & Poverty. The organization has 7813 authors who have published 21594 publications receiving 1198361 citations. The organization is also known as: World Bank, WB & The World Bank.

Bank Competition and Financial Stability

Abstract: Under the traditional "competition-fragility" view, more bank competition erodes market power, decreases profit margins, and results in reduced franchise value that encourages bank risk taking. Under the alternative "competition-stability" view, more market power in the loan market may result in greater bank risk as the higher interest rates charged to loan customers make it more difficult to repay loans and exacerbate moral hazard and adverse selection problems. But even if market power in the loan market results in riskier loan portfolios, the overall risks of banks need not increase if banks protect their franchise values by increasing their equity capital or engaging in other risk-mitigating techniques. The authors test these theories by regressing measures of loan risk, bank risk, and bank equity capital on several measures of market power, as well as indicators of the business environment, using data for 8,235 banks in 23 developed nations. The results suggest that - consistent with the traditional "competition-fragility" view - banks with a greater degree of market power also have less overall risk exposure. The data also provide some support for one element of the "competition-stability" view - that market power increases loan portfolio risk. The authors show that this risk may be offset in part by higher equity capital ratios.

The Impact of Sea Level Rise on Developing Countries: A Comparative Analysis

Abstract: Sea level rise (SLR) due to climate change is a serious global threat. The scientific evidence is now overwhelming. Continued growth of greenhouse gas emissions and associated global warming could well promote SLR of 1m-3m in this century, and unexpectedly rapid breakup of the Greenland and West Antarctic ice sheets might produce a 5m SLR. In this paper, the authors have assessed the consequences of continued SLR for 84 developing countries. Geographic Information System (GIS) software has been used to overlay the best available, spatially-disaggregated global data on critical impact elements (land, population, agriculture, urban extent, wetlands, and GDP) with the inundation zones projected for 1-5m SLR. The results reveal that hundreds of millions of people in the developing world are likely to be displaced by SLR within this century, and accompanying economic and ecological damage will be severe for many. At the country level, results are extremely skewed, with severe impacts limited to a relatively small number of countries. For these countries (such as Vietnam, A. R. of Egypt, and The Bahamas), however, the consequences of SLR are potentially catastrophic. For many others, including some of the largest (such as China), the absolute magnitudes of potential impacts are very large. At the other extreme, many developing countries experience limited impacts. Among regions, East Asia and the Middle East and North Africa exhibit the greatest relative impacts. To date, there is little evidence that the international community has seriously considered the implications of SLR for population location and infrastructure planning in developing countries. The authors hope that the information provided in this paper will encourage immediate planning for adaptation.

Stock Market Development and Financial Intermediaries: Stylized Facts

Abstract: The three most developed stock markets are in Japan, the United Kingdom, and the United States, and the most underdeveloped markets are in Colombia, Nigeria, Venezuela, and Zimbabwe. Markets tend to be more developed in richer countries, but some markets commonly labeled emerging (for example, in Malaysia, the Republic of Korea, and Thailand) are systematically more developed than some markets commonly labeled developed (for example, in Australia, Canada, and many European countries). World stock markets are booming. Between 1982 and 1993, stock market capitalization grew from $2 trillion to $10 trillion, an average 15 percent a year. A disproportionate amount of this growth was in emerging stock markets, which rose from 3 percent of world stock market capitalization to 14 percent in the same period. Yet there is little empirical evidence about how important stock markets are to long-term economic development. Economists have neither a common concept nor a common measure of stock market development, so we know little about how stock market development affects the rest of the financial system or how corporations finance themselves. Demirguc-Kunt and Levine collected and compared many different indicators of stock market development using data on 41 countries from 1986 to 1993. Each indicator has statistical and conceptual shortcomings, so they used different measures of stock market size, liquidity, concentration, and volatility, of institutional development, and of international integration. Their goal: To summarize information about a variety of indicators for stock market development, in order to facilitate research into the links between stock markets, economic development, and corporate financing decisions. They highlight certain important correlations: In the 41 countries they studied, there are enormous cross-country differences in the level of stock market development for each indicator. The ratio of market capitalization to GDP, for example, is greater than 1 in five countries and less than 0.10 in five others. There are intuitively appealing correlations among indicators. For example, big markets tend to be less volatile, more liquid, and less concentrated in a few stocks. Internationally integrated markets tend to be less volatile. And institutionally developed markets tend to be large and liquid. The three most developed markets are in Japan, the United Kingdom, and the United States. The most underdeveloped markets are in Colombia, Nigeria, Venezuela, and Zimbabwe. Malaysia, the Republic of Korea, and Switzerland seem to have highly developed stock markets, whereas Argentina, Greece, Pakistan, and Turkey have underdeveloped markets. Markets tend to be more developed in richer countries, but many markets commonly labeled emerging (for example, in Korea, Malaysia, and Thailand) are systematically more developed than markets commonly labeled developed (for example, in Australia, Canada, and many European countries). Between 1986 and 1993, some markets developed rapidly in size, liquidity, and international integration. Indonesia, Portugal, Turkey, and Venezuela experienced explosive development, for example. Case studies on the reasons for (and economic consequences of) this rapid development could yield valuable insights. The level of stock market development is highly correlated with the development of banks, nonbank financial institutions (finance companies, mutual funds, brokerage houses), insurance companies, and private pension funds. This paper - a product of the Finance and Private Sector Development Division, Policy Research Department - is part of a larger effort in the department to study stock market development. The study was funded by the Bank's Research Support Budget under the research project Stock Market Development and Financial Intermediary Growth (RPO 678-37).

The Effect of Primary-School Quality on Academic Achievement across Twenty-nine High- and Low-Income Countries

Abstract: Most previous research on effects of schooling has concluded that the effect of school or teacher quality on academic achievement is less than that of family background or other characteristics of students that predate entry into school. However, the evidence for that generalization is derived mainly from a few of the world's school systems. This paper explores diverse influences on pupil achievement in Africa, Asia, Latin America, and the Middle East. Children who attend primary school in countries with low per capita incomes have learned substantially less after similar amounts of time in school than have pupils in high income countries. At the same time, the lower the income of the country, the weaker the influence of pupils' social status on achievement. Conversely, in low income countries, the effect of school and teacher quality on academic achievement in primary school is comparatively greater. From these data it is possible to conclude that the predominant influence on student learning is the quality of the schools and teachers to which children are exposed.