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Nutrition policy. --- Nutrition policy --- World health. --- World Health. --- Financial Support. --- Nutrition Policy --- Global Health. --- Developing Countries. --- World health --- Health Policy --- International Cooperation --- Economics --- Public Policy --- Internationality --- Health Care Economics and Organizations --- Social Control Policies --- Social Sciences --- Health Care --- Policy --- Anthropology, Education, Sociology and Social Phenomena --- Social Control, Formal --- Sociology --- Developing Countries --- Financial Support --- economics. --- World Bank. --- Developing countries.

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July 2000 - This study of an important class of investors-U.S. mutual funds-finds that mutual funds do engage in momentum trading (buying winners and selling losers). They also engage in contagion trading strategies (selling assets from one country when asset prices fall in another). Kaminsky, Lyons, and Schmukler address the trading strategies of mutual funds in emerging markets. The data set they develop permits analyses of these strategies at the level of individual portfolios. A methodologically novel feature of their analysis: they disentangle the behavior of fund managers from that of investors. For both managers and investors, they strongly reject the null hypothesis of no momentum trading. Funds' momentum trading is positive: they systematically buy winners and sell losers. Contemporaneous momentum trading (buying current winners and selling current losers) is stronger during crises, and stronger for fund investors than for fund managers. Lagged momentum trading (buying past winners and selling past losers) is stronger during noncrises, and stronger for fund managers. Investors also engage in contagion trading-selling assets from one country when asset prices fall in another. These findings are based on data about mutual funds that represent only 10 percent of the market capitalization in the countries considered. Were it a larger share of the market, finding counterparties for their trades (the investors who buy when they sell and sell when they buy) would be difficult-and the premise that funds respond to contemporaneous returns rather than causing them would become tenuous. This paper-a product of Macroeconomics and Growth, Development Research Group-is part of a larger effort in the group to understand capital flows to developing countries. The study was funded by the Bank's Research Support Budget under the research project Mutual Fund Investment in Developing Countries. The authors may be contacted at graciela@gwu.edu, lyons@haas.berkeley.edu, or sschmukler@worldbank.org.

Budget --- Debt Markets --- Emerging Market --- Emerging Markets --- Finance and Financial Sector Development --- Financial Crisis --- Financial Support --- Fund Managers --- Hedge --- Hedge Funds --- Interest --- Investor --- Investors --- Lending --- Mutual Fund --- Mutual Fund Strategies --- Mutual Funds --- Pension --- Pension Funds --- Portfolio --- Trading --- Warrants

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This paper explores the impact of the emergence of China and India on foreign capital stocks in other economies. Using bilateral data from 1990-2003 and drawing from the knowledge-capital model of the multinational enterprises to control for fundamental determinants of foreign capital stocks across countries, the evidence suggests that the impact of foreign capital in China and India on other countries' foreign capital stocks has been positive. This finding is robust to the use of ordinary least squares, Poisson, and negative binomial estimators; to the inclusion of time and country-pair fixed effects; to the inclusion of natural-resource endowments; and to the use of the sum of foreign capital stocks in Hong Kong (China) and mainland China instead of using only the latter's foreign capital stocks. There is surprisingly weak evidence of substitution in manufacturing foreign capital stocks away from Central America and Mexico in favor of China, and from the Southern Cone countries to India, but these findings are not robust to the use of alternative estimation techniques.

Currencies and Exchange Rates --- Debt Markets --- E-Business --- Economic Theory and Research --- Finance and Financial Sector Development --- Financial support --- Foreign Direct Investment --- Foreign direct investment --- Foreign investment --- International Economics & Trade --- International investment --- Macroeconomics and Economic Growth --- Manufacturing --- Natural resources --- Private Sector Development --- Production processes --- Results --- Search --- Web

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Low aspirations can limit households' investments and contribute to sustained poverty. Vice versa, increased aspirations can lead to investment and upward mobility. Yet how aspirations are formed is not always well understood. This paper analyzes the role of social interactions in determining aspirations in the context of a program aimed at increasing households' investments. The causal effect of social interactions is identified through the randomized assignment of leaders and other beneficiaries to three different interventions within each treatment community. Social interactions are found to affect households' attitudes toward the future and to amplify program impacts on investments in human capital and productive activities. The empirical evidence indicates that communication with motivated and successful nearby leaders can lead to higher aspirations and corresponding investment behavior.

Asset base --- Beneficiaries --- Capital investment --- Cash transfer --- Cash transfers --- Debt Markets --- Developing countries --- Education --- Finance and Financial Sector Development --- Financial support --- Housing and Human Habitats --- Human capital --- International Bank --- Investment and Investment Climate --- Investment behavior --- Labor Policies --- Liquidity --- Liquidity constraints --- Macroeconomics and Economic Growth --- Market Access --- Microcredit --- Microfinance --- Primary Education --- Productive investment --- Productive investments --- Risk management --- Safety net --- Social Protections and Labor --- Trust funds

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Facing runaway inflation and budget discipline problems in the early 1990s, the Zambian government introduced the so-called cash budget in which government domestic spending is limited to domestic revenue, leaving no room for excess spending. Dinh, Adugna, and Myers review Zambia's experience during the past decade, focusing on the impact of the cash budget on poverty reduction. They conclude that after some initial success in reducing hyperinflation, the cash budget has largely failed to keep inflation at low levels, created a false sense of fiscal security, and distracted policymakers from addressing the fundamental issue of fiscal discipline. More important, it has had a deeply pernicious effect on the quality of service delivery to the poor. Features inherent to the cash budgeting system facilitated a substantial redirection of resources away from the intended targets, such as agencies and ministries that provide social and economic services. The cash budget also eliminated the predictability of cash releases, making effective planning by line ministries difficult. Going forward, Zambia must adopt measures that over time will restore the commitment to budget discipline and shelter budget execution decisions from the pressures of purely short-term exigencies. This paper-a product of the Poverty Reduction and Economic Management Division 1, Africa Region-is part of a larger effort in the region to review public expenditure management.

Budget --- Budget Discipline --- Budget Execution --- Cash Budget --- Cash Budget System --- Cash Budgeting --- Cash Budgeting System --- Cash Budgets --- Debt Markets --- Domestic Revenue --- Economic Growth --- Finance and Financial Sector Development --- Financial Literacy --- Financial Support --- Fiscal Discipline --- Inflation --- Macroeconomic Effects --- Macroeconomic Policy --- Outcomes --- Poverty Reduction --- Public Sector Expenditure Analysis and Management --- Service Delivery --- Services --- Social Services