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on Development |
| By: | Vu Hoang Nam (Faculty of International Economics, Foreign Trade University, Vietnam); Dao Ngoc Tien (Faculty of Economics and International Business, Foreign Trade University, Vietnam); Phan Thi Van (Faculty of Economics and International Business, Foreign Trade University, Vietnam) |
| Abstract: | While village industries are known to play an important role in the development of rural areas in developing countries, little is known about village industries in transition economies. Also, little attention has been paid to the question of how human capital contributes to the choice of jobs and income of workers in these village industries. This paper inquires into the determinants of the workers' choice of jobs and income in two village-based industrial clusters in Northern Vietnam. We found that formal schooling plays an important role in the self-selection of jobs and income of workers in all of the villages. |
| Keywords: | Vietnam; Industrial cluster |
| JEL: | O14 O53 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:dpc:wpaper:0710&r=dev |
| By: | Hoi Quoc Le (Faculty of Economics, National Economics University, Vietnam) |
| Abstract: | This paper examines how initial inequality and poverty rate are related to subsequent economic growth in the provincial level of Vietnam. The results show a robust negative relationship between initial poverty rate and subsequent economic growth. However, there is no link between initial inequality and subsequent economic growth. The results also show that lower inequality leads to lower poverty rate and poverty reduction could help to reduce inequality. Other determinants of inequality and poverty reduction include human capital, investment, GDP growth rate and trade openness. The main policy implication that emerges from this paper is that concentrating on poverty elimination will help us to build a more equitable society without sacrificing economic growth. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:dpc:wpaper:0610&r=dev |
| By: | Huynh Truong Huy (Center for Migration and Intercultural Studies, Antwerpen University) |
| Abstract: | Since the mid 1990s, miracle development of the private and foreign sectors in the Southern economic region of Viet Nam has attracted a large number of migrant flows from the Mekong Delta region and the Khmer migrants have a recognized contribution to those migration flows. Based on the survey of 76 Khmer families in Tra Vinh province where the Khmer is dominant in its total population, this paper examines demographic and socio characteristics of the Khmer families affecting the determinants of migration decision by using of the logistic regression model. This result indicates that migration decision is importantly depended on number of members, plot size, poverty and so on. In addition, this result also points that migration not only brings migrants an increased income, but also contributes positively to their family's income in rural origin. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:dpc:wpaper:2009&r=dev |
| By: | Jean-Pierre Cling (DIAL Développement, Institutions & Analyses de Long terme, IRD Institut de Recherche pour le Développement); Mireille Razafindrakoto (DIAL Développement, Institutions & Analyses de Long terme, IRD Institut de Recherche pour le Développement); Francois Roubaud (DIAL Développement, Institutions & Analyses de Long terme, IRD Institut de Recherche pour le Développement) |
| Abstract: | Although the impact was less dramatic than in other Asian countries, Vietnam has been affected by the international crisis which started in 2008, resulting in a significant slowdown of economic growth. This paper aims at assessing the impact of this economic crisis on employment, unemployment and the informal sector. Contrarily to previous studies on this subject, we anticipate a very small increase of unemployment. According to our estimates, most of the impact of the crisis in terms of employment will actually be felt in the informal sector, where most new entrants on the labour market and laid(off workers will end up working. This feature will result in an urgent need to put in place specific policies to tackle informal sector low productivity and its manpower's lack of labour protection. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:dpc:wpaper:0510&r=dev |
| By: | Nelson, Harumi T.; Roe, Terry L.; Diao, Xinshen |
| Keywords: | Income distribution, economic growth, Development strategies, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:931&r=dev |
| By: | Long, Cheryl; Zhang, Xiaobo |
| Keywords: | Clustering, Industrialization, Finance, export, productivity, Development strategies, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:937&r=dev |
| By: | Panda, Manoj; Ganesh-Kumar, A. |
| Keywords: | food security, Nutrition, Computable general equilibrium (CGE), Globalization, Markets, trade, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:930&r=dev |
| By: | Swinnen, Johan F.M.; Vandeplas, Anneleen |
| Keywords: | Contract farming, Enforcement, Development, Rent distribution, High-value agriculture, Globalization, Markets, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:932&r=dev |
| By: | Yamauchi, Futoshi; Higuchi, Katsuhiko; Suhaeti, Rita Nur |
| Keywords: | Seasonality, Birth-weight, Drinking water, Child growth, Social protection, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:933&r=dev |
| By: | Mogues, Tewodaj; Benin, Samuel; Cudjoe, Godsway |
| Keywords: | Decentralization, Inter-governmental transfers, Local government, Internally generated revenues, Development strategies, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:934&r=dev |
| By: | Akramov, Kamiljon T.; Asante, Felix Ankomah |
| Abstract: | "This paper explores disparities in local public service provision between decentralized districts in Ghana using district- and household-level data. The empirical results show that districts' geographic locations play a major role in shaping disparities in access to local public services in Ghana. Most importantly, the findings suggest that ethnic diversity has significant negative impact in determining access to local public services, including drinking water. This negative impact is significantly higher in rural areas. However, the negative impact of ethnic diversity in access to local public services (drinking water) decreases as average literacy level increases. The paper relates the results to literature and discusses policy implications of main findings." from authors' abstract |
| Keywords: | Decentralization, Access to public services, Ethnic diversity, Geography, Development strategies, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:872&r=dev |
| By: | Michael Alexeev, Robert Conrad (Indiana University, Terry Sanford School of Public Policy and Department of Economics, Duke University) |
| Abstract: | Using cross-country regressions, we examine the relationship between “point-source” resource abundance and economic growth, quality of institutions, investment in human and physical capital, and social welfare (life expectancy and infant mortality). Contrary to most literature, we find little evidence of natural resource curse outside of the economies in transition. In the economies in transition, there is some evidence that natural resource wealth is associated with higher infant mortality. This negative effect, however, exists only relative to other resource rich countries. Compared to other economies in transition, natural resource abundant transitional economies are not worse off with respect to our indicators.. |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:inu:caeprp:2009-018&r=dev |
| By: | Durevall, Dick (Department of Economics, School of Business, Economics and Law, Göteborg University); Lindskog, Annika (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | This study analyzes the relationship between economic inequality and the spread of HIV among young Malawian women. We estimate multi-level logistic models of the individual probability of being HIV infected. Two different community levels are considered; the immediate neighbourhood, and Malawi’s districts. The main finding is a strong positive association between communal inequality and the risk of HIV infection. The relationship between HIV status and income, at the communal and the individual levels, is less clear-cut, but individual absolute poverty does not increase the risk of HIV infection. Further analysis shows that the HIV-inequality relationship is related to riskier sexual behavior, gender violence, and close links to urban areas, measured by return migration. It does not seem to be related to worse health in more unequal communities, or gender gaps in education or women’s market work.<p> |
| Keywords: | Africa; AIDS; communal; health; multilevel models; poverty; wealth |
| JEL: | I12 |
| Date: | 2009–12–28 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0425&r=dev |
| By: | Bigsten, Arne (Department of Economics, School of Business, Economics and Law, Göteborg University); Tengstam, Sven (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | The Zambian economy has grown relatively fast over the last decade up to the current global financial crisis. This paper discusses the challenge of using these growing resources effectively to improve the welfare of the population and to reduce poverty. The poverty head count index is found to have declined from 1998 to 2004 by about 5.4 percentage points. This change can be decomposed into a 6.6 percentage point reduction due to growth and a 1.2 percentage point increase due to inequality change. Since poverty is most severe in the rural areas it is important to make agriculture more efficient by improving roads and electricity, extension services and education. Our discussion further highlights the need to improve tax revenue collection and efficiency in realising budget expenditure plans. An important reform to undertake would be to change the budget cycle. The private sector development strategy should make the country a more attractive destination for private investors by creating a better business environment and infrastructure. The country also needs a new trading arrangement with the EU. Poverty relevant social services such as health and education remain vital. The health sector needs to be strengthened both because it has an immediate effect on welfare and because it helps build and protect human capital that is essential for long-term growth. Also social protection might have a role to play. It might be possible to use schools for channelling resources to the poor. Finally, improved governance helps all other measures to become more efficient.<p> |
| Keywords: | Zambia; poverty estimates; economic policy; budget; private sector; social services |
| JEL: | O10 |
| Date: | 2009–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0424&r=dev |
| By: | Johansson, Pernilla (Department of Economics, Lund University) |
| Abstract: | This paper studies whether the poorest and most indebted countries receive aid in the form of grants rather than loans. By studying bilateral aid flows to low- and middle-income countries between 1975 and 2005, the paper provides evidence on the determinants of the grant component of aid flows. While the empirical analysis finds no evidence that more indebted countries receive a higher grant component, it shows that poorer countries receive a significantly higher grant component of aid, although the size of the effect is rather limited. |
| Keywords: | Aid composition; Aid allocation; Indebtedness; Poverty |
| JEL: | F34 F35 |
| Date: | 2009–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lunewp:2009_019&r=dev |
| By: | Charalambos G. Tsangarides; Alin Mirestean |
| Abstract: | This paper revisits the cross-country growth empirics debate using a novel Limited Information Bayesian Model Averaging framework to address model uncertainty in the context of a dynamic growth model in panel data with endogenous regressors. Our empirical findings suggest that once model uncertainty is accounted for there is strong evidence that initial income, investment, life expectancy, and population growth are robustly correlated with economic growth. We also find evidence that debt, openness, and inflation are robust growth determinants. Overall, the set of our robust growth determinants differs from those identified by other studies that incorporate model uncertainty, but ignore dynamics and/or endogeneity. This underscores the importance of accounting for model uncertainty and endogeneity in the investigation of growth determinants. |
| Keywords: | Cross country analysis , Economic conditions , Economic growth , Economic models , Human capital , |
| Date: | 2009–12–08 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:09/268&r=dev |
| By: | Chauffour, Jean-Pierre; Saborowski, Christian; Soylemezoglu, Ahmet I. |
| Abstract: | New data on export insurance and guarantees suggest that publicly backed export credit agencies have played a role to prevent a complete drying up of trade finance markets during the current financial crisis. Given that export credit agencies are mainly located in advanced and emerging economies, the question arises whether developing countries that are not equipped with these agencies should establish their own agencies to support exporting firms and avoid trade finance shortages in times of crisis. This paper highlights a number of issues requiring attention in the decision whether to establish such specialized financial institutions. It concludes that developing countries should consider export credit agencies only when certain pre-requirements in terms of financial capacity, institutional capability, and governance are met. |
| Keywords: | Debt Markets,Emerging Markets,Access to Finance,Banks&Banking Reform,Financial Intermediation |
| Date: | 2010–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5166&r=dev |
| By: | Dang, Hai-Anh; Knack, Steve; Rogers, Halsey |
| Abstract: | The global financial crisis has already led to sharp downturns in the developing world. In the past, international aid has been able to offset partially the effects of crises that began in the developing world, but because this crisis began in the wealthy countries, donors may be less willing or able to increase aid in this crisis. Not only have donor-country incomes fallen, but the cause of the drop -- the banking and financial-sector crisis -- may exacerbate the effect on aid flows because of its heavy fiscal costs. This paper estimates how donor-country banking crises have affected aid flows in the past, using panel data from 24 donor countries between 1977 and 2007. The analysis finds that banking crises in donor countries are associated with a substantial additional fall in aid flows, beyond any income-related effects, perhaps because of the high fiscal costs of crisis and the debt hangover in the post-crisis periods. In most specifications, aid flows from crisis-affected countries fall by an average of 20 to 25 percent (relative to the counterfactual) and bottom out only about a decade after the banking crisis hits. In addition, the results confirm that donor-country incomes are robustly related to per-capita aid flows, with an elasticity of about 3. Because all donor countries are being hit hard by the current global recession, and several have also suffered banking-sector crises, there are reasons to expect that aid could fall by a significant amount (again, relative to the counterfactual) in the coming years -- just when aid may be most clearly justified to help smooth exogenous shocks to developing countries. |
| Keywords: | Economic Conditions and Volatility,Labor Policies,Debt Markets,Development Economics&Aid Effectiveness,Banks&Banking Reform |
| Date: | 2009–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5162&r=dev |
| By: | Giorgio Bellettini (University of Bologna); Carlotta Berti Ceroni (University of Bologna); Giovanni Prarolo (University of Bologna) |
| Abstract: | Using data on a panel of 56 democratic countries in the period 1975-2004, we find evidence of a negative association between political stability and economic growth which is stronger and empirically more robust in countries with high bureaucratic costs. Motivated by these results, which contrast with previous contributions, we develop a model of growth with quality improvements where political connections with long-term politicians can be exploited by low-quality producers to defend their monopoly position and prevent innovation and entry of high-quality competitors. This requires that the incumbent politician remains in office and that the red-tape cost advantage granted by political connections is large relative to the quality upgrade related to innovation. Consistently with our empirical findings, the model delivers a negative association between the probability that the incumbent politician remains in office and average economic growth in the presence of high bureaucratic costs. |
| Keywords: | Political Persistence, Growth, Innovation |
| JEL: | O43 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.107&r=dev |
| By: | César Calderón; Rodrigo Fuentes.; Rodrigo Fuentes. |
| Abstract: | One strand of the empirical growth literature has cast doubt on the ability of the policy recommendations from Washington Consensus in enhancing growth. They argue that not only the design but also the policy mix has an important country-specific component (e.g. Hausmann, Rodrik and Velasco, 2005 and Zettelmeyer, 2006). We argue that the effectiveness of policies in promoting growth depends upon the set of structural policies implemented or already existing in the country. This paper empirically examines the role of policy complementarities in explaining growth and development from two dimensions. First, we construct a regression-based policy index in the same vein of Burnside and Dollar (2000), and we decompose this index afterwards into domestic and outward policy indices. Second, we evaluate the role of policy complementarities in the growth process by interacting our policy index with specific country characteristics that affect growth. We repeat the same exercise with the domestic and outward policy indices. We found that outward oriented and domestic policies are highly complements to each other. Specifically, the growth effects of trade and financial openness are enhanced when domestic policies are correct and, moreover, financial and trade openness are also complements. Regarding structural factors, we found that human capital increase growth as expected but it is neither a complement nor a substitute of economic policy. On the other hand institutions and financial depth are complements with economic policy. This could be an explanation why some countries have stabilized their economies but they are not growing faster, this could be due to low financial development or bad institutions. Finally, we should remark that in addition to the Fatas and Mihov (2006) result that policy volatility hurts growth, we find that a good policy environment could propel growth by mitigating the negative effect of aggregate volatility and, more specifically, the volatility of external shocks. |
| Keywords: | Growth, Volatility, Economic Policy. |
| JEL: | O47 O40 E32 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ioe:doctra:366&r=dev |
| By: | Markus Brückner; Antonio Ciccone |
| Abstract: | To learn more about the effect of economic conditions on civil war, we examine whether Sub-Saharan civil wars are more likely to start following downturns in the international price of countries’ main export commodities. The data show a robust effect of commodity price downturns on the outbreak of civil wars. We also find that Sub-Saharan countries are more likely to see civil wars following economic downturns in their main OECD export destinations. |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaddt:2009-37&r=dev |
| By: | Digdowiseiso, Kumba |
| Abstract: | Abstract This paper examines the determinants of economic growth, income inequality, and their relationship in the context of education inequality. The econometric results from a cross-section analysis of 23 provinces in the period of 1996-2005 indicate that a higher level of human capital and the relative dispersion of human capital have a disequalizing effect on the income distribution. It also confirms that economic growth has strongly and significantly equalizing effect on the income distribution, supporting the complementarity relationship between equity and growth. In addition, human capital investment contributes significantly to the growth of economy. Therefore, in a bid to achieve egalitarian society with a more equitable distribution of income, economic policies should be more targeted at not only more education but also equal access to education. |
| Keywords: | Education; Growth; Inequality; and Indonesia |
| JEL: | I30 I21 O40 |
| Date: | 2009–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:17792&r=dev |
| By: | Chaudhuri, Sarbajit |
| Abstract: | The paper is purported to examine the consequences of possible labour market reform in the developing economies on the incidence of child labour and economic well-being of the child labour supplying families. A two-sector, full-employment general equilibrium structure with child labour and imperfection in the market for adult labour has been used for the analytical purpose. Although this policy is likely to lower the incidence of child labour the welfare of the families supplying child labour worsens. The paper, therefore, questions the desirability of a policy designed at mitigating the child labour problem especially when it makes the poor families worse off. |
| Keywords: | Child labour; labour market reform; welfare of poor families; general equilibrium |
| JEL: | J13 J10 F10 I28 |
| Date: | 2009–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:19667&r=dev |
| By: | Chaudhuri, Sanjukta |
| Abstract: | This paper uses multivariate regression analysis to explore the time and birth cohort trends of women’s empowerment in eight countries of South Asia and South East Asia. The measures of women’s empowerment are: economic participation, educational attainment, wage work, fertility, female to male sex ratio of living children, and the ideal female to male sex ratio. The data (1990s and 2000s) are from the Demographic and Health Surveys (DHS.) Comparison of estimated cohort lines demonstrate that Philippines and Vietnam, both in South East Asia, have the highest education level, highest rates of economic participation, and the lowest fertility rates. Cambodia has the highest female to male ratio. Pakistan and Nepal have lowest education; Pakistan and Bangladesh have the lowest economic participation rates and highest fertility rates; India has the lowest sex ratio. In surveying country specific literature to confirm these estimates, I conclude (1) social and religious norms hinder women’s empowerment in both regions. (2) Progress in women’s empowerment has been achieved through feminist movements (the Philippines), government programs (the Doi Moi program of Vietnam) and Non Government Organization efforts (Grameen Bank of Bangladesh) (3) Much of the progress has been achieved with meager access to resources. (4) More empowerment could be the consequence of political turmoil, (Cambodia) and not necessarily economic development or cultural shifts. |
| Keywords: | female empowerment; education; labor force participation; fertility; South Asia; Southeast Asia |
| JEL: | N35 J16 |
| Date: | 2010–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:19686&r=dev |
| By: | Mapa, Dennis; Balisacan, Arsenio; Briones, Kristine Joy; Albis, Manuel Leonard |
| Abstract: | The provincial per capita income growth in the Philippines can be considered as generally dismal in the last three decades. In trying to investigate this phenomenon, the paper applies robustness procedures to identify variables strongly correlated with provincial income growth in the Philippines. The extreme bound analysis and Bayesian averaging of classical estimates procedures are applied to fifteen determinants of income growth from a data set consisting of 74 Philippine provinces for the period 1985 to 2003. Results show that the high level of inequality is a serious obstacle to Philippine economic growth. The study also shows that the percentage of young dependents, or those aged 0 to 14 years, over the total population also hinders the provincial income growth. |
| Keywords: | Extreme Bound Analysis; Bayesian Averaging of Classical Estimates; Inequality;Young Dependents |
| JEL: | O18 O15 R11 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:19449&r=dev |
| By: | Chaudhuri, Sanjukta |
| Abstract: | In examining child work and education in rural India, I find that Parental education and hours of non household child work demonstrate a U shaped relationship. I contend this is due to weak labor markets for skilled workers in rural India that creates a “high education trap.” This results in poverty and perpetuation of child work in households with highly educated parents. School attendance is feasible even for child workers, but is conditional on continuity of enrollment. At 30 hours of non household work per week, school enrollment in the previous year ensures that the probability of attendance in the current year is 93 percent. |
| Keywords: | Child work; Child labor; Child education; Rural India; Poverty; Gender discrimination. |
| JEL: | D13 O53 J21 I32 |
| Date: | 2009–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:19687&r=dev |
| By: | Admasu Shiferaw (University of Göttingen); Arjun Bedi (International Institute of Social Studies, Erasmus University Rotterdam) |
| Abstract: | This paper analyzes the creation, destruction and reallocation of jobs to better understand the micro-dynamics of aggregate employment change in African manufacturing. The nature and magnitude of gross job flows are examined using a unique panel data of Ethiopian manufacturing establishments over the period 1996-2007. We also assess the relative importance of firm demographics, industry effects and business cycles for job flows. The rates and patterns of job creation and destruction in our sample are comparable to the findings from developed and emerging economies suggesting that African firms adjust their labor force in a manner broadly similar to firms elsewhere and that African labor markets are not uniquely restrictive to undermine job reallocation across firms. We also find, like in many other countries, that job reallocation is relatively higher in industries dominated by small and young establishments. Unlike in other regions, however, job reallocation in our sample is pro-cyclical and its cross-industry variation holds very little similarity with that of developed and emerging economies. Small firms in Africa create jobs mainly at the point of entry to a market with limited contribution to manufacturing employment through post-entry expansion. |
| Keywords: | Job Creation; Job Destruction; Job Reallocation; Firm Dynamics; Sub-Saharan Africa; Ethiopia |
| JEL: | J20 J23 J49 |
| Date: | 2010–01–11 |
| URL: | http://d.repec.org/n?u=RePEc:got:gotcrc:022&r=dev |
| By: | Renate Hartwig (International Institute of Social Studies, Erasmus University Rotterdam); Michael Grimm (International Institute of Social Studies, Erasmus University Rotterdam) |
| Abstract: | In 2002 Malawi experienced a serious shortage of cereals due to adverse climatic conditions. The World Food Programme assumed that about 2.1 to 3.2 million people were threatened of starvation at that time. However, not much research has been undertaken to investigate the actual consequences of this crisis. In particular, little is known about how the crisis affected the health status of children. Obviously, quantifying the health impact of such a crisis is a serious task given the lack of data and the more general problem of relating outcomes to specific shocks and policies. In this paper a difference-in-difference estimator is used to quantify the impact of the food crisis on the health status of children. The findings suggest that at least in the short run, there was neither a significant impact on child mortality nor on malnutrition. This would suggest that the shock might have been less severe than initially assumed and that the various policy interventions undertaken at the time have been effective or at least sufficient to counteract the immediate effects of the crisis. |
| Keywords: | Child Mortality; Malnutrition; Food Crisis; Malawi |
| Date: | 2009–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:got:gotcrc:019&r=dev |
| By: | Michael Grimm (International Institute of Social Studies of Erasmus University Rotterdam); Stephan Klasen |
| Abstract: | There is a well-known debate about the role of institutions in explaining the long-term development of countries. We believe there is value-added to consider the institutions hypothesis at the micro level within a country to analyze the exact transmission channels linking endogenous institutional change to development outcomes. Given the central importance of agricultural productivity improvements for initiating the process of economic development, we focus on the transmission mechanisms that lead to the emergence of institutions relevant for agricultural development, thereby incorporating insights from the literatures on demographic influences of institutional change, induced innovations, as well as the central role of land rights in our analysis. Our main argument is that in conditions of relative land abundance, geographic factors influence rural-rural migration flows to geographically well-endowed regions which in turn give rise to migration-induced land scarcity. Land scarcity in turn, provides incentives to formalize landownership. Eventually, formalized land rights increase investment in land and enhance the adoption of new and better technologies promoting agricultural growth and economic development. We provide empirical evidence for this hypothesis using longitudinal village and household survey data from Indonesia. |
| Keywords: | Geography; migration; land titles; institutions; agricultural development; Indonesia |
| JEL: | K11 O12 Q12 |
| Date: | 2009–09–22 |
| URL: | http://d.repec.org/n?u=RePEc:got:gotcrc:014&r=dev |