nep-dev New Economics Papers
on Development
Issue of 2011‒04‒30
24 papers chosen by
Mark Lee
Towson University

  1. What did the Maoists ever do for us? Education and marriage of women exposed to civil conflict in Nepal By Christine Valente
  2. Trade, technology adoption and wage inequalities: theory and evidence By Maria Bas
  3. Remittances and the prevalence of working poor By Jean-Louis Combes; Christian Ebeke; Mathilde Maurel; Thierry Yogo
  4. Health Insurance Reform and Efficiency of Township Hospitals in rural China: an Analysis from Survey Data By Aurore Pelissier; Martine Audibert; Jacky Mathonnat; Xiao Xian Huang
  5. Motives and Giving Norms Behind Remittances: the Case of Filipino Overseas Workers and their Recipient Households By Michael M. Alba; Jessaine Soraya C. Sugui
  6. Sectoral Strategy and Poverty: the Case of Togo. Stratégie sectorielle et pauvreté: cas du Togo. By Akoété Ega Agbodji; Koffi Yovo; Kodjo Abalo; Komlan Dodzi Agbodji; Ablamba Ahoéfavi Johnson
  7. Can conditional cash transfers improve maternal health and birth outcomes?: Evidence from El Salvador's Comunidades Solidarias Rurales By de Brauw, Alan; Peterman, Amber
  8. The consequences of early childhood growth failure over the life course: By Hoddinott, John; Maluccio, John; Behrman, Jere R.; Martorell, Reynaldo; Melgar, Paul; Quisumbing, Agnes R.; Ramirez-Zea, Manuel; Stein, Aryeh D.; Yount, Kathryn M.
  9. Farm households' preference for cash-based compensation versus livelihood-enhancing programs: A choice experiment to inform avian flu compensation policy in Nigeria By Oparinde, Adewale; Birol, Ekin
  10. Evaluating the long-term impact of antipoverty interventions in Bangladesh: An overview By Quisumbing, Agnes R.; Baulch, Bob; Kumar, Neha
  11. Settler skills and colonial development By Johan Fourie; Dieter von Fintel
  12. Does Health Insurance Decrease Health Expenditure Risk in Developing Countries? The Case of China By Juergen Jung; Jialu Liu
  13. Aid and Growth What Meta-Analysis Reveals By Tseday Jemaneh Mekasha; Finn Tarp
  14. School Access, Resources, and Learning Outcomes: Evidence from a Non-formal School Program in Bangladesh By Dang, Hai-Anh; Sarr, Leopold; Asadullah, Niaz
  15. China's Latent Human Capital Investment: Achieving Milestones and Competing for the Top By Constant, Amelie F.; Tien, Bienvenue; Zimmermann, Klaus F.; Meng, Jingzhou
  16. Network Effects on Migrants' Remittances By Aparicio Fenoll, Ainhoa
  17. How to Deal with Covert Child Labour, and Give Children an Effective Education, in a Poor Developing Country By Cigno, Alessandro
  18. Volunteerism after the tsunami: democratization and aid By Tiago Freire; Vernon Henderson; Ari Kuncoro
  19. Remittances and the prevalence of working poor. By Jean-Louis Combes; Christian Ebeke; Mathilde Maurel; Thierry Yogo
  20. Democratization, Violent Social Conflicts, and Growth By Matteo Cervellati; Sunde, Uwe
  21. Disease Environment and Civil Conflicts By Matteo Cervellati; Sunde, Uwe; Simona Valmori
  22. Health Insurance Reform and Efficiency of Township Hospitals in rural China: an Analysis from Survey Data By Xiao Xian HUANG; Jacky MATHONNAT; Martine AUDIBERT; Aurore PELISSIER
  23. Does Pervasive Corruption Matter For Firm's Demand for Good Governance in Developing Countries? By Sébastien MARCHAND; Gaoussou DIARRA
  24. Migration, Social Security, and Economic Growth By Chen, Hung-Ju; Fang, I-Hsiang

  1. By: Christine Valente (Department of Economics, The University of Sheffield)
    Abstract: Between 1996 and 2006, Nepal experienced violent civil conflict as a consequence of a Maoist insurgency, which many argue also brought about an increase in female empowerment. In this paper, I exploit within- and between- district variation in the intensity of violence to estimate the impact of conflict intensity on two key areas of the life of women in Nepal, namely education and marriage. Overall conflict intensity had a small, positive effect on female educational attainment, whereas abductions by Maoists had the reverse effect. Male schooling was not significantly affected by either conflict measure. Conflict intensity and Maoist abductions during school age both increased the probability of early female marriage, but exposure to conflict during marriageable age does not appear to have affected women’s long-term marriage probability.
    Keywords: Civil conflict, Education, Marriage, Gender, Nepal
    JEL: I20 J12 O12
    Date: 2011–04
    URL: http://d.repec.org/n?u=RePEc:shf:wpaper:2011009&r=dev
  2. By: Maria Bas (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: This paper develops a trade model with heterogeneous firms introducing a fixed technology cost and different types of skilled labor. The main contribution is to explain the effects of trade integration on the extensive margin of technology adoption and its impact on wage inequalities. The originality of this paper is to combine skilled-biased technological change with international trade theory based on heterogeneous firms in a general equilibrium model. Moreover, it provides empirical evidence supporting the main assumption and predictions of the model using plant level panel data of Chilean's manufacturing sector for the period 1990-1999. The theoretical framework offers a possible explanation of the puzzle concerning the increase in the skill premium in developing countries. The H-O-S model predicts a reduction of inequalities after trade reforms in developing countries, while there is widespread empirical evidence of an increase in the skill premium in these countries. In our model the key mechanism is related to the effects of trade policy on the number of new firms upgrading technology and on the skill intensity. Trade liberalization increases export revenues raising the probability that the most productive exporters will upgrade technology. These firms will increase their relative demand of skilled labor, thereby enhancing the inequalities.
    Keywords: firm heterogeneity ; trade reforms ; technology adoption ; skill premium ; plant panel data
    Date: 2011–04–18
    URL: http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-00586858&r=dev
  3. By: Jean-Louis Combes (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Christian Ebeke (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Mathilde Maurel (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I); Thierry Yogo (FSEG, CEREG - Université de Yaoudé II-Soa)
    Abstract: This paper focuses on the relationships between remittances and the share of individuals working for less than 2$ US per day. It is based on an original panel dataset containing information related to remittances in about 80 developing countries and to the number of workers being paid less than 2 dollars per day as well. Even after factoring in the endogeneity of remittance inflows the results suggest that remittances lead to a decrease in the prevalence of working poor in receiving economies. This effect is stronger in a contex of high macroeconomic volatility but is mitigated by the unpredictability of remittances : remittances are more effective to decreasing the share of working poor when they are easily predictable. Moreover, domestic finance and remittances appear as substitutes : remittances are less efficient in reducing the prevalence of working poor whenever finance is available.
    Keywords: Working poor, remittances, shocks, financial development.
    Date: 2011–04
    URL: http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00587797&r=dev
  4. By: Aurore Pelissier (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Martine Audibert (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Jacky Mathonnat (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Xiao Xian Huang (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I)
    Abstract: In the rural health-care organization of China, township hospitals ensure the delivery of basic medical services. Particularly damaged by the economic reforms implemented from 1975 to the end of the 1990s, township hospitals efficiency is questioned, mainly with the implementation since 2003 of the reform of health insurance in rural areas. From a database of 24 randomly selected township hospitals observed over the period 2000-2008 in Weifang prefecture (Shandong), the study examines the efficiency of township hospitals through a two-stage approach and the calculation of the Malmquist index. As curative and preventive medical services delivered at township hospital level use different production processes, two data envelopment analysis models are estimated with different orientation chosen to compute scores. Following Simar and Wilson (2007), as the traditional two-stage methodology is not relevant, we used a double bootstrap strategy. Results show that technical efficiency declines over time. Moreover, township hospitals are less efficient in the production of preventive services than in the production of curative ones. Several variables explained efficiency (township hospitals' and environment's characteristics) but our results suggest that in the context of China, the efficiency of township hospitals is also influenced by unobservable factors.
    Keywords: data envelopment analysis;Technical efficiency;Double bootstrapping;China;New Rural Cooperative Medical Scheme;Township Hospitals
    Date: 2011–04–21
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00587799&r=dev
  5. By: Michael M. Alba; Jessaine Soraya C. Sugui
    Abstract: The literature has focused on motives to explain remittance behavior. But as non-anonymous transfers, remittances are liable to be influenced by giving norms as well. We formulate an empirical specification that takes account of remittance motives involving worker-household pairs. We find that altruism dominates the exchange motive among overseas workers who are likely to be the primary breadwinners of their recipient households. We also find that, in the subsample in which overseas workers are likely to be secondary breadwinners, (a) household labor income is an endogenous explanatory variable and (b) the error covariance of the household income and remittance selection equations is positive. A possible reason for (a) is that secondary breadwinners use household income as an imperfect signal of opportunity cost or to detect unobserved effort, i.e., moral hazard, in generating income. As for (b), we surmise that it indicates the presence of incentive-compatible mechanisms against moral hazard. On giving norms, we find that in samples that include overseas workers who are secondary breadwinners, remittance amounts are afflicted with negative selectivity. We present evidence that this is consistent with Filipino giving practices, in which everyone gives but in modest amounts.
    Keywords: Remittances, remittance motives, giving norms
    JEL: F24
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:lvl:pmmacr:2011-06&r=dev
  6. By: Akoété Ega Agbodji; Koffi Yovo; Kodjo Abalo; Komlan Dodzi Agbodji; Ablamba Ahoéfavi Johnson
    Abstract: A general calculable equilibrium model, calibrated using the 2000 SAM, was developed to analyze the possible effects of an external price shock and the effects of a sectoral investment strategy on the distribution of income in Togo in the context of the PRSP. Analysis of the SAM was used to highlight the importance of food production in the creation and distribution of income in Togo. This sector contributes 20% of the country’s value added, 67 percent of which is paid to informal labour in the form of wages. Given that poverty is most prevalent in rural areas, where there is a 74.3 percent incidence of poverty as opposed to 36.8 percent for urban areas, it is reasonable for the government to make improved productivity and the creation and distribution of wealth in rural areas a national priority. The effects of a ten percent increase in capital in both food and cash crop farming are as follows: (i) an increase in value added and production, along with a decrease in agricultural prices; (ii) improved price-competitiveness for the economy; (iii) an increase in final consumption and net exports, resulting in an expansion of GDP; (iv) an increase in real wages for informal labour, which is heavily used in the agricultural sector, along with lower wages in the formal sector; and (v) higher real income and welfare for households. This analysis thus confirms that increasing investment in agriculture, particularly for food crops, could improve the distribution of income and welfare in rural areas. Moreover, the simulation of a ten percent increase in export prices for cash crops, textiles, and fats and oils reveals non negligible macroeconomic and sectoral effects as well as improved welfare.
    Keywords: Poverty, government strategies, CGE models
    JEL: I32 I38 C68
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:lvl:mpiacr:2011-02&r=dev
  7. By: de Brauw, Alan; Peterman, Amber
    Abstract: Although conditional cash transfers (CCTs) are traditionally evaluated in relation to child schooling and nutrition outcomes, there is growing interest in specifically examining maternal and reproductive health impacts. However, since data collection is not typically designed to evaluate these outcomes and sample sizes are often limited, there is a lack of rigorous evidence as to whether and through which pathways these effects may be realized. This paper uses regression discontinuity design and a unique implicit threshold to evaluate the impact of El Salvador's CCT program Comunidades Solidarias Rurales on a range of maternal and reproductive health outcomes: (1) prenatal care, (2) skilled attendance at birth, (3) birth in a health facility, and (4) postnatal care, using data collected by the International Food Policy Research Institute and its collaborators from women who entered the program in 2006 and 2007. Results indicate that robust impacts are found on outcomes at time of birth (skilled attendance and birth in facility), while no impacts are found on healthseeking behavior pre- and postbirth (prenatal and postnatal care). Potential impact pathways as well as the implications of these findings for program design are discussed in the conclusion.
    Keywords: conditional cash transfer, maternal health,
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:fpr:ifprid:1080&r=dev
  8. By: Hoddinott, John; Maluccio, John; Behrman, Jere R.; Martorell, Reynaldo; Melgar, Paul; Quisumbing, Agnes R.; Ramirez-Zea, Manuel; Stein, Aryeh D.; Yount, Kathryn M.
    Abstract: This paper examines the impact over the life course of early childhood growth failure as measured by achieved height at 36 months. It uses data collected on individuals who participated in a nutritional supplementation trial between 1969 and 1977 in rural Guatemala and who were subsequently reinterviewed between 2002 and 2004. It finds that individuals who did not suffer growth failure in the first three years of life complete more schooling, score higher on tests of cognitive skill in adulthood, have better outcomes in the marriage market, earn higher wages and are more likely to be employed in higher-paying skilled labor and white-collar jobs, are less likely to live in poor households, and, for women, fewer pregnancies and smaller risk of miscarriages and stillbirths. Growth failure has adverse impacts on body size and several dimensions of physical fitness in adulthood but does not have marked effects on risk indicators of cardiovascular and related chronic diseases. These results provide a powerful rationale for investments that reduce early-life growth failure.
    Keywords: Chronic disease, early life growth failure, fertility, Human capital, Poverty, Undernutrition, Wages,
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:fpr:ifprid:1073&r=dev
  9. By: Oparinde, Adewale; Birol, Ekin
    Abstract: In this paper we attempt to bridge the resilience school of thought and incentive compatibility in livestock disease control policies through a pilot choice experiment study conducted on 104 farm households in the Nasarawa state of Nigeria. The aim of this study was to shed light on farm households' valuation of various compensation plan attributes and trade-offs among these attributes. In the experiment presented here, compensation plan was defined broadly to include not just the traditional attributes, such as the number of days it takes to receive the payment, the compensation rate, and the method of payment, but also more diverse interventions, such as training in biosecurity measures and access to bank loans, which are expected to have longer-term impacts on households' livelihood outcomes. We analyzed the data using various discrete choice models, the best-fitting of which was the random parameter (or mixed) logit model with interactions, which enabled us to capture both unobserved and observed heterogeneity in farm households' preferences for the compensation plan attributes. The results reveal that overall, study households preferred compensation plans that made payment in fewer days, provided facilitated credit access, and offered biosecurity training. Households with better-educated heads and those with lower income levels valued compensation plans that provided credit access and biosecurity training the most. These findings are expected to inform the design of efficient, effective, equitable, and targeted compensation policies, which could not only reduce the livestock disease risk but also improve the resilience of poor farm households' livelihoods against future poultry-related or other idiosyncratic shocks.
    Keywords: avian flu, choice experiment method, compensation scheme, conditional logit model, livestock disease, random parameter logit model,
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:fpr:ifprid:1072&r=dev
  10. By: Quisumbing, Agnes R.; Baulch, Bob; Kumar, Neha
    Abstract: This paper provides an overview of a research project that assessed the long-term impact of three antipoverty interventions in Bangladesh—the introduction of new agricultural technologies, educational transfers, and microfinance—on monetary and nonmonetary measures of well-being. This paper begins by setting out the conceptual framework, methodology, and empirical methods used for the evaluation of long-term impacts. It discusses the context of the evaluations and the longitudinal data used. Key findings from the individual papers are then presented, followed by an indicative analysis of the cost-effectiveness of these interventions. The overview concludes with implications for programs and policy.
    Keywords: antipoverty interventions, Impact evaluation, long-term impact,
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:fpr:ifprid:1077&r=dev
  11. By: Johan Fourie; Dieter von Fintel
    Abstract: The emphasis on location-specific factors, such as climate or disease environment, in the explanation of development outcomes in colonial societies implicitly assumes that settler groups were homogenous. Using tax records, this paper shows that the French Huguenots who immigrated to Dutch South Africa at the end of the 17th century were more productive wine-makers than the already-established non-French farmers. Standard factors of production usually associated with faster growth do not explain the differences between the two groups. We posit that the skills of the Huguenots — the ability to make quality wines — provided a sustainable competitive advantage that not only explains initial but persistent productivity differences. We test this hypothesis by dividing the French settlers into two groups — those originating from wine regions, and those from wheat regions — and comparing them with other settler groups. Potential differences between the French (overall) and the Dutch may be attributable to institutional and cultural differences, while variations within the French group are more likely to be skill-related. This intuitive but important insight — that home-country production determines settler-society productivity, even in later generations — sheds new light on our understanding of how newly settled colonial societies develop, and of the importance of knowledge and skills in economic growth.
    Keywords: South Africa, Cape Colony, French Huguenots, VOC, wine, slaves
    JEL: N37 D31 D63
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:rza:wpaper:213&r=dev
  12. By: Juergen Jung (Department of Economics, Towson University); Jialu Liu (Department of Economics, Allegheny College)
    Abstract: We make use of panel data from the China Health and Nutrition Survey between 1991 and 2006 to investigate whether health insurance increases out-of-pocket (OOP) health expenditure risk. We find that health insurance increases the probability of catastrophic OOP health expenditures using a series of Probit models. We then use two-part as well as sample selection models to account for selection on unobservable variables and find that although the probability of positive OOP health expenditures increases with the availability of health insurance, the actual level of OOP health expenditures decreases. More specifically, we find that for a per- son with positive OOP health expenditures, having health insurance reduces the level of OOP expenses by 12.56 percent while controlling for selection effects.
    Keywords: health insurance, exposure to health risk, health care in China, out-of-pocket health expenditure in China, two-part model, bivariate sample selection model, Heckman two- step estimator, China Health and Nutrition Survey (CHNS).
    JEL: I11 C33 C34
    Date: 2011–04
    URL: http://d.repec.org/n?u=RePEc:tow:wpaper:2011-04&r=dev
  13. By: Tseday Jemaneh Mekasha; Finn Tarp
    Abstract: Some recent literature in the meta-analysis category where results from a range of studies are brought together throws doubt on the ability of foreign aid to foster economic growth and development. This paper assesses what meta-analysis has to say about the effectiveness of foreign aid in terms of the growth impact. We re-examine key hypotheses, and find that the effect of aid on growth is positive and statistically significant. This significant effect is genuine, and not an artefact of publication selection. We also show why our results differ from those published elsewhere.
    Keywords: aid and growth, meta-analysis, heterogeneity and publication bias
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:unu:wpaper:wp2011-22&r=dev
  14. By: Dang, Hai-Anh (World Bank); Sarr, Leopold (World Bank); Asadullah, Niaz (University of Reading)
    Abstract: This study reports evidence from an unusual policy intervention – The Reaching Out of School Children (ROSC) project – in Bangladesh where school grants and education allowances are offered to attract hard-to-reach children to schools comprised of a single teacher and a classroom. The operating unit cost of these schools is a fraction of that of formal primary schools. We use panel data to investigate whether ROSC schools are effective in raising enrolment and learning outcomes. Our findings suggest that there is a modest impact on school participation: ROSC schools increase enrolment probability between 9 and 18% for children in the two age cohorts 6-8 and 6-10. They perform as well as non-ROSC schools in terms of raising test scores, and even have positive impacts on academically stronger students. There is also strong evidence of positive externalities on non-ROSC schools in program areas. These results point to the effectiveness of a new model of non-formal primary schools that can be replicated in similar settings.
    Keywords: non-formal school, impact evaluation, multiple treatments, learning outcomes
    JEL: I21 O10
    Date: 2011–04
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp5659&r=dev
  15. By: Constant, Amelie F. (DIW DC, George Washington University); Tien, Bienvenue (DIW DC); Zimmermann, Klaus F. (IZA and University of Bonn); Meng, Jingzhou (George Washington University)
    Abstract: In this paper we provide an overview of China’s human capital strategy and educational achievements over the last two decades. While every one acknowledges China as an economic superpower, very few are aware of or realize China’s notable achievements in education as well as its internationalization of education. Since 1978, the landmark for the foundation of the Chinese modern higher education system China has made tremendous strides in education both domestically and internationally. While China maintains 10% growth in GDP, albeit with a GDP per capita at the low level of a developing country, it is also producing serious scholars and a tremendous amount of scholarly output; more and more Chinese students seek higher education abroad; and international students find a rising interest in receiving education in China.
    Keywords: China, human capital, brain drain, higher education
    JEL: F22 J24 N35 O15 O24 O53
    Date: 2011–04
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp5650&r=dev
  16. By: Aparicio Fenoll, Ainhoa (Universitat Pompeu Fabra)
    Abstract: This paper explores the existence of network effects in migrants’ remittance behavior. In this study, networks are defined as groups of immigrants from the same country that live in the same locality. Using the National Immigrant Survey, a unique database for Spain, immigrants are found to be more likely to remit and to remit more money if they belong to high remitting country groups. This finding sheds new light on the determinants of the decision to remit, as well as on the scope of immigrant networks.
    Keywords: immigrant networks, remittances, Spain
    JEL: J61 F22 O15 A14 E21
    Date: 2011–04
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp5657&r=dev
  17. By: Cigno, Alessandro (University of Florence)
    Abstract: As credit and insurance markets are imperfect, and given that intra-family transfers, and the way a child uses her time outside school hours, are private information, the second-best policy makes school enrollment compulsory, forces overt child labour below its efficient level (if positive), and uses a combination of need and merit based grants, financed by earmarked taxes, to relax credit constraints, redistribute and insure. Existing conditional cash transfer schemes can be made to approximate the second-best policy by incorporating these principles in some measure.
    Keywords: child labour, education, uncertainty, moral hazard, optimal taxation
    JEL: D82 H21 H31 I28 J24
    Date: 2011–04
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp5663&r=dev
  18. By: Tiago Freire; Vernon Henderson; Ari Kuncoro
    Abstract: Using three waves of survey data from fishing villages in Aceh, Indonesia for 2005-2009, we examine the determinants of local volunteer labor after the tsunami. Pre-existing social capital and the form of aid delivery (but not trauma) strongly affect village volunteerism initially, but these effects weaken with time. What persists is the effect of essentially a new institution, formal village elections. While recent work suggests democratization increases cooperation, the differentially timed introduction of elections negatively affects volunteerism, suggesting a regime switch effect where traditional leaders chosen by elites want more volunteer labor projects than democratically elected leaders do.
    Keywords: #
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:bro:econwp:2011-8&r=dev
  19. By: Jean-Louis Combes (CERDI - Université d'Auvergne); Christian Ebeke (CERDI - UNiversité d'Auvergne); Mathilde Maurel (Centre d'Economie de la Sorbonne); Thierry Yogo (FSEG, CEREG - Université de Yaoundé II-Soa)
    Abstract: This paper focuses on the relationships between remittances and the share of individuals working for less than 2$ US per day. It is based on an original panel dataset containing information related to remittances in about 80 developing countries and to the number of workers being paid less than 2 dollars per day as well. Even after factoring in the endogeneity of remittance inflows the results suggest that remittances lead to a decrease in the prevalence of working poor in receiving economies. This effect is stronger in a contex of high macroeconomic volatility but is mitigated by the unpredictability of remittances : remittances are more effective to decreasing the share of working poor when they are easily predictable. Moreover, domestic finance and remittances appear as substitutes : remittances are less efficient in reducing the prevalence of working poor whenever finance is available.
    Keywords: Working poor, remittances, shocks, financial development.
    JEL: F22 F43 O16
    Date: 2011–04
    URL: http://d.repec.org/n?u=RePEc:mse:cesdoc:11021&r=dev
  20. By: Matteo Cervellati; Sunde, Uwe
    Abstract: This paper investigates the empirical role of violent conflicts for the causal effect of democracy on economic growth. Exploiting within-country variation to identify the effect of democratization during the "Third Wave", we find evidence that the effect of democratization is weaker than reported previously once one accounts for the incidence of conflict, while the incidence of conflict itself significantly reduces growth. The results show in turn that permanent democratic transitions significantly reduce the incidence and onset of conflict, which suggests that part of the positive growth effect of democratization arises because democratization reduces conflict incidence. When accounting for the role of violence during democratization, we find evidence that peaceful transitions to democracy have a significant positive effect on growth that is even larger than reported in the previous literature, while violent transitions to democracy have no, or even negative, effects on economic growth.
    Keywords: Democratization, Armed Conict, Civil War, Economic Growth, Democratization Scenario, Peaceful Transition.
    JEL: O43 N10 N40
    Date: 2011–04
    URL: http://d.repec.org/n?u=RePEc:usg:econwp:2011:14&r=dev
  21. By: Matteo Cervellati; Sunde, Uwe; Simona Valmori
    Abstract: This paper tests the hypothesis that a high and persistent exposure to infectious diseases increases the likelihood of civil conflicts. Diseases that are difficult to prevent and treat may reduce the opportunity costs of violent activities, both directly and indirectly. The analysis exploits new data on the number of multi-host vector-transmitted infectious diseases that are endemic in each country. As consequence of their specific features, the presence of these pathogens in a country is closely related to geo-climatological conditions and exogenous to civil conflict. The findings document that a larger disease richness is a statistically robust and quantitatively relevant determinant of civil conflicts for the period 1960-2004. Exploiting within country variation, the findings also document that interactions between climatological shocks in terms of droughts and the disease environment have a significant effect on the risk of civil wars. The results are robust to different specifications, data sets and estimation methods, and suggest that the persistent exposure to a more unfavorable environment in terms of disease richness is an important determinant of the incidence of civil conflict. The results also suggest the potential relevance of a channel linking geography to economic development that has not been investigated in the literature.
    Keywords: Disease Environment, Civil Conict, Multi-Host Vector-Transmitted Pathogens, Civil War
    JEL: D74 J1
    Date: 2011–04
    URL: http://d.repec.org/n?u=RePEc:usg:econwp:2011:13&r=dev
  22. By: Xiao Xian HUANG (-); Jacky MATHONNAT (Centre d'Etudes et de Recherches sur le Développement International); Martine AUDIBERT (Centre d'Etudes et de Recherches sur le Développement International); Aurore PELISSIER (Centre d'Etudes et de Recherches sur le Développement International)
    Abstract: In the rural health-care organization of China, township hospitals ensure the delivery of basic medical services. Particularly damaged by the economic reforms implemented from 1975 to the end of the 1990s, township hospitals efficiency is questioned, mainly with the implementation since 2003 of the reform of health insurance in rural areas. From a database of 24 randomly selected township hospitals observed over the period 2000-2008 in Weifang prefecture (Shandong), the study examines the efficiency of township hospitals through a two-stage approach and the calculation of the Malmquist index. As curative and preventive medical services delivered at township hospital level use different production processes, two data envelopment analysis models are estimated with different orientation chosen to compute scores. Following Simar and Wilson (2007), as the traditional two-stage methodology is not relevant, we used a double bootstrap strategy. Results show that technical efficiency declines over time. Moreover, township hospitals are less efficient in the production of preventive services than in the production of curative ones. Several variables explained efficiency (township hospitals' and environment's characteristics) but our results suggest that in the context of China, the efficiency of township hospitals is also influenced by unobservable factors.
    Keywords: data envelopment analysis, Technical efficiency, Double bootstrapping, China, New Rural Cooperative Medical Scheme, Township Hospitals
    JEL: O12 I38 I1 G22
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:cdi:wpaper:1257&r=dev
  23. By: Sébastien MARCHAND (Centre d'Etudes et de Recherches sur le Développement International); Gaoussou DIARRA (Centre d'Etudes et de Recherches sur le Développement International)
    Abstract: This paper investigates empirically the relationships between the corruption climate and the demand for good governance by focusing on firms' behaviors in developing countries. The concept of demand for good governance is conceived in terms of a firm's willingness to comply with regulatory norms measured through the firm's perception of the level of public accountability as well as the firm's behavior in terms of corruption practices. While there is a growing theoretical literature on the importance of externality mechanisms of corruption phenomena, little empirical evidences has been highlighted. This paper contributes to fill this gap by using firm-level data from the World Bank Enterprise Survey. We show that when corruption is found to be a very important constraint for a firm's business, its willingness to comply decreases and the probability of the firm's corrupting officials increases. These results support arguments according to which the demand for good governance is likely to be influenced by the perception of the existence of pervasive corruption. Moreover, the results are conditioned on countries' institutional features and the type of regulation. Some evidence is also found for firms' environmental overcompliance.
    Keywords: Corruption; Compliance; Regulation; Firms
    JEL: A13 A12
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:cdi:wpaper:1258&r=dev
  24. By: Chen, Hung-Ju; Fang, I-Hsiang
    Abstract: This paper studies the effect of population aging on economic performance in an overlapping-generations model with international migration. Fertility is endogenized so that immigrants and natives can have different fertility rates. Fertility is an important determinant to the tax burden of social security since it affects the quantity and quality of future tax payers. We find that introducing immigrants into the economy can reduce the tax burden of social security. If life expectancy (or the replacement ratio) is high enough, the growth rate of GDP per worker for an economy with international migration will be higher than for a closed economy. Regarding migration policies, our numerical results indicate that economic growth rate of GDP per worker will first decrease then increase as the flow of immigrants increases. Increasing the quality of immigrants will enhance economic growth.
    Keywords: Economic growth; Fertility; Migration; Social security.
    JEL: F22 H55 O15
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:30251&r=dev

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