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Cover -- Contents -- I. INTRODUCTION -- II. CONCEPTUAL FRAMEWORK: NET INTEREST MARGINS AND GOVERNANCE -- A. Banking Sector Factors -- B. Governance Factors -- C. Macroeconomic Factors -- D. Empirical Methodologies -- III. EXPLAINING BANK INTERMEDIATION COSTS -- A. The Data -- Financial Intermediation Costs-The Net Interest Margin -- B. The Econometric Analysis -- Basic Specification -- Extended Models -- The Global Financial Crisis -- C. Robustness Checks -- IV. POLICY SIMULATIONS: THE COST OF POOR GOVERNANCE -- V. CONCLUSION -- REFERENCES -- FIGURES -- 1. Net Interest Margins in Different Country Groups, 1996 - 2015 -- 2. Net Interest Margins over Time, 1996 - 2015 -- TABLES -- 1. Basic Specification -- 2. Models Extended with Selected Governance Variables -- 3. Extended Models with Interconnectedness -- 4. Extended Models with Capital Market Variables -- 5. Extended Models with Impact of Global Financial Crisis -- 6. Estimated Potential Savings from Improved Governance -- 7. Countries Included in the Sample -- 8. Data Description and Sources -- 9. Correlation Coefficients of Main Variables -- 10. Robustness Check of Other Governance Indicators -- 11. Robustness Check for Endogeneity Using Instrument Variables -- 12. Robustness Checks for Cross-Sectional Dependence -- 13. Robustness Check for Non-Linearity -- 14. Robustness Check with Lagged Dependent Variable -- 15. Robustness Check for Outliers -- APPENDICES -- I. Countries Included in the Sample -- II. Data Description and Sources -- III. Correlation Coefficients -- IV. Robustness Checks

This paper examines economic growth and various dimensions of regional disparities in Slovakia. We find that regional disparities in the levels of GDP per capita, labor productivity, and labor utilization have widened since 2000, coinciding with the time that Slovakia initiated negotiations on EU accession. Notwithstanding ?-divergence in the levels, there was conditional ?-convergence in the growth rates of GDP per capita and labor productivity. Improvements in total factor productivity were the main engine of growth of GDP in all regions. Sustaining growth and reducing disparities will requi

Global economic integration intensified tax competition and raised concerns about the resulting ""race to the bottom"", which could undermine public investment and social spending. The aim of this paper is to test predictions that (i) there is interdependence in CIT rate setting in Eastern Europe and that (ii) the recent CIT cut in Moldova may intensify tax competition in the region. It finds that there is indeed evidence that during 1995-2006 countries in Eastern Europe strategically responded to changes in CIT rates in the region and that Moldovan zero CIT is likely to encourage further cuts

Lebanon is expected to have gas resources in its Mediterranean basin, and these could turn thecountry into a natural gas producer over the next decade. Lebanon's economy and institutions will thus need to adapt to the challenges and opportunities that such change will bring. In this paper, we address how Lebanon's fiscal framework will need to be reformulated to take into account potential resource revenue. Designing a fiscal regime appropriately is an absolute prerequisite to make sure the government can receive a fair share of the resources while investors face appropriate incentives to inve

AbstractLebanon is expected to have gas resources in its Mediterranean basin, and these could turn the country into a natural gas producer over the next decade. Lebanon's economy and institutions will thus need to adapt to the challenges and opportunities that such change will bring. In this paper, we address how Lebanon's fiscal framework will need to be reformulated to take into account potential resource revenue. Designing a fiscal regime appropriately is an absolute prerequisite to make sure that the government can receive a fair share of the resources while investors face appropriate incentives to invest and develop the sector. This step should be followed by setting macro-fiscal anchors and supporting institutions. The prospective framework should be focused on ensuring fiscal sustainability and intergenerational equity, given the estimated relatively short horizon of Lebanon's gas resources. Strong institutional arrangements also need to underpin the prospective framework, to ensure that the pace of resource wealth's use is set in line with Lebanon's capacity constraints.