|
on Development |
| By: | Shoji, Masahiro; Aoyagi, Keitaro; Kasahara, Ryuji; Sawada, Yasuyuki |
| Abstract: | This study tests alternative hypotheses concerning the motivations behind the participation by rural households in community work. Using unique data from natural and field experiments in southern Sri Lanka, where irrigated fields have been allocated to farmers by government lottery, we compare quantitatively five possible motives behind community participation: public goods investment, general social capital accumulation, production network formation, risk sharing network formation, and pure altruism. Our empirical results show that community participation patterns are consistent with social capital accumulation behavior to form risk sharing networks. Only a few studies have investigated empirically the process of social capital formation, and our analysis fills the gap in the literature. Our findings also suggest the possibility of a poverty trap: facing negative shocks, poor households may have difficulty in finding time for social capital accumulation and risk sharing network formation; this, in turn, may cause them to become more vulnerable and even poorer. |
| Keywords: | Community participation , Social capital , Network formation , Risk sharing |
| Date: | 2010–06–19 |
| URL: | http://d.repec.org/n?u=RePEc:jic:wpaper:16&r=dev |
| By: | Aida, Takeshi |
| Abstract: | This paper investigates the effect of social capital between irrigation canal head-enders and tail-enders on their water allocation problem. Although social capital is considered to be an instrument for common pool resource management, a consensus has not been reached on its effect among heterogeneous players. In irrigation management, the water allocation problem between head-enders and tail-enders is one of these serious problems. Using unique natural and artefactual field experiment data as well as general household survey data collected by JICA, this study finds that social capital, especially trust toward their tail-enders, has a significantly positive effect on satisfaction with water usage among head-enders. Considering the fact that the incentive structure of irrigation water allocation for head-enders closely resembles that in the dictator and trust games, this finding also supports the validity of experimentally measured social capital. In addition, this study deals with the simultaneity bias between satisfaction level and experimentally measured social capital, and finds that OLS estimators are downward biased, which is consistent with the hypothesis that scarcity of resources enhances the level of social capital. |
| Keywords: | social capital , irrigation , field experiment , head-enders and tail-enders |
| Date: | 2011–08–09 |
| URL: | http://d.repec.org/n?u=RePEc:jic:wpaper:33&r=dev |
| By: | Chung, Yessica C.Y. |
| Abstract: | Using an enterprise-level dataset collected from 234 workshops located in the furniture cluster of the city of Arusha, Tanzania, this paper investigates the mechanisms of technical knowledge exchange that take place in clusters. A knowledge exchange link is defined as any two clustering entrepreneurs who perform similar manufacturing techniques in the production process. The results show that the strength of the ethnic networks of producers has positive effects on acquisition of manufacturing techniques, particularly in skills such as wood-joining, which are mainly influenced by a producer’s own skills rather than production facilities. Using dyadic data analysis, this paper further finds that two producers from the same ethnic minority are more likely to exhibit the same manufacturing techniques compared with two producers from the same ethnic majority. These findings suggest that ethnic networks facilitate knowledge exchange in an industrial cluster, but that this positive externality of the ethnic network effect only takes place in small-sized ethnic groups, and only to the extent that sophisticated facilities are not essential in the knowledge learning processes. |
| Keywords: | ethnic networks , knowledge learning , industrial cluster , Africa |
| Date: | 2012–01–24 |
| URL: | http://d.repec.org/n?u=RePEc:jic:wpaper:37&r=dev |
| By: | Takeuchi, Shinichi |
| Abstract: | State-building is currently considered to be an indispensable process in overcoming state fragility: a condition characterized by frequent armed conflicts as well as chronic poverty. In this process, both the capacity and the legitimacy of the state are supposed to be enhanced; such balanced development of capacity and legitimacy has also been demanded in security sector reform (SSR), which is regarded as being a crucial part of post-conflict state-building. To enhance legitimacy, the importance of democratic governance is stressed in both state-building and SSR in post-conflict countries. In reality, however, the balanced enhancement of capacity and legitimacy has rarely been realized. In particular, legitimacy enhancement tends to stagnate in countries in which one of multiple warring parties takes a strong grip on state power. This paper tries to understand why such unbalanced development of state-building and SSR has been observed in post-conflict countries, through a case study of Rwanda. Analyses of two policy initiatives in the security sector ? Gacaca transitional justice and disarmament, demobilization, and reintegration (DDR) ? indicate that although these programs achieved goals set by the government, their contribution to the normative objectives promoted by the international community was quite debatable. It can be understood that this is because the country has subordinated SSR to its state-building process. After the military victory of the former rebels, the Rwandan Patriotic Front (RPF), the ruling elite prioritized the establishment of political stability over the introduction of international norms such as democratic governance and the rule of law. SSR was implemented only to the extent that it contributed to, and did not threaten, Rwanda’s RPF-led state-building |
| Keywords: | state-building , Rwanda , SSR , conflict , Gacaca , legitimacy |
| Date: | 2011–07–25 |
| URL: | http://d.repec.org/n?u=RePEc:jic:wpaper:32&r=dev |
| By: | Takahashi, Ryo; Todo, Yasuyuki |
| Abstract: | This study uses remote sensing data to quantitatively examine the impact of establishing participatory forest management associations in Ethiopia. The results indicate that where there is a forest association, forest area declines more in the year the association is established than it does in a forest area where there is no association. This suggests that villagers may engage in “last-minute” logging. However, one year after associations are established, forest area where there is an association increases substantially, probably due to the associations planting trees at boundary areas between forest and non-forest and monitoring illegal logging. On average, where there are forest associations, forest area increases by 1.5 percent in the first two years, while forest area where there is no association declines by 3.3 percent. Totaling this impact over two years yields a 4.8 percent positive net increase in the rate of change. |
| Keywords: | impact evaluation , remote sensing , forest protection , community management , Ethiopia |
| Date: | 2011–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:jic:wpaper:31&r=dev |
| By: | Hamaguchi, Nobuaki |
| Abstract: | Using the district-level data, we found that even in a relatively poor country like Kenya, ethnic diversity is associated with better economic outcomes at local level. However, we found that income spillovers depend on ethnic similarity. This suggests the influence of ethnic bias through which ethnic diversity may undermine economic efficiency at the national-level, as many crosscountry regressions have pointed out. This result implies, for policy making, that the question of interregional transaction costs cannot be narrowly focused on problems of transportation infrastructure but it is also related with ethnic divisions in African context. |
| Keywords: | ethnic bias , spatial correlation , regional economy |
| Date: | 2011–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:jic:wpaper:35&r=dev |
| By: | Hanatani, Atsushi; Sato, Mine |
| Abstract: | Since early 2000, a type of group-based informal irrigation for irrigating a very small area ? less than two hectares on average, has seen widespread adoption among Malawian farmers. The technology, called “temporary” irrigation, uses farmers’ own labor and locally available materials for constructing river diversion structures and canals, and these are managed by informal “clubs.” This paper attempts to assess the effectiveness and sustainability of this technology from the beneficiaries’ point of view, by employing an analytical framework that focuses on property rights and collective action as critical factors affecting technology choice and adoption. A comparative examination of selected informal irrigation cases in the Dowa district reveals that, in spite of the absence of secure tenure over land and water and of strong collective-action incentives among farmers, temporary irrigation has satisfied most of the effectiveness criteria and thus has contributed to technological expansion. This is attributable to the relative resource affluence and temporary nature of irrigation facilities which have existed at least up to the present. But the very “success” of the informal irrigation technology is changing the nature of the resources: where water in the streams has become scarce, river-bank lands have been commoditized and temporary diversion structures have been upgraded to permanent structures. Specific policy measures necessary to ensure sustainability of temporary irrigation should include: 1) provision of agronomic extension services to improve the profitability of irrigation, 2) promotion of basin-wide watershed management including provision of opportunities for stakeholder dialogues for conflict resolution while improving water use efficiency to enable secure and equitable access to productive resources, and 3) a cautious approach in strengthening water users’ associations based on deeper understandings of the farmers’ incentives (cost and benefit) for taking collective action. |
| Keywords: | Malawi , informal irrigation , property rights , collective action , effectiveness , sustainability |
| Date: | 2011–08–25 |
| URL: | http://d.repec.org/n?u=RePEc:jic:wpaper:34&r=dev |
| By: | Fujita, Yasuo |
| Abstract: | This paper discusses policy issues pertaining to infrastructure development in low income countries (LICs) in Asia. Infrastructure challenges in Asian LICs have not been adequately highlighted to date mainly because the international focus has often been on African LICs and because large countries such as China, India, and Indonesia attracted more interest among the developing Asian countries. While Asian LICs have sought to improve their infrastructure over the years, the quality and quantity is generally insufficient although significant variations exist between countries and sectors. Since their fiscal space and governmental capacities are limited despite large investment needs, each possible infrastructure investment must be placed in order of priority. In Asian LICs, spatially connective infrastructure (including logistics, telecommunications, and electricity) should be given priority to generate benefits from economies of agglomeration, fragmentation of production activities, and better connectivity to fast-growing large markets, although the trade-off between economic efficiency and spatially balanced growth is a difficult issue. Particularly, some large Asian LICs have great potential to become part of sophisticated regional production networks through effective infrastructure. Climate change, both the adaptation of infrastructure and mitigation through green development, also needs to be sufficiently taken into account or mainstreamed. The fact that the investment in public private partnerships (PPP) projects in infrastructure has recently been increasing in Asian LICs is encouraging. To scale up PPP, Asian LIC governments should clarify the contributions of the private sector (in such aspects as capital investment and operational efficiency), continue to improve the investment climate, policies, and regulations, and prepare bankable projects in which the roles of the public and private sectors are defined. The public sector will continue to be the main provider and regulator of infrastructure in Asian LICs. Although public sector performance should improve, there has been no single blueprint for it, and therefore country-specific approaches are called for. Donors should continue to support Asian LICs in scaling up infrastructure investment through project-financing, technical assistance, and capacity development. Keywords: Infrastructure, low income country, economic integration. |
| Keywords: | Infrastructure, low income country , economic integration , public private partnership , climate change |
| Date: | 2012–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:jic:wpaper:40&r=dev |
| By: | Naude, Wim; Matthee, Marianne |
| Abstract: | What is the impact of export costs on the speed and extent to which African firms exports? We answer this question using a sample of 49,584 (mostly formal) firms across 71 countries, including 5,839 firms in 16 African countries surveyed by the World Bank during 2002 and 2003. We find that firms in African countries face higher export costs on average than firms in other parts of the world. However we find that African firms are more likely to enter export markets, but that when they do the extent of their exports (exports as a share of their total sales) is on average less than that of firms elsewhere. Also, younger firms are more likely to start exporting than older firms. As for the impact on export costs, we establish that the costs of exporting (as measured in US dollars) lower the likelihood and the extent of African firms’ exports but not when African firms start exporting. |
| Keywords: | international entrepreneurship , exports , transport costs , firm heterogeneity , Africa |
| Date: | 2012–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:jic:wpaper:38&r=dev |
| By: | Todo, Yasuyuki; Takahashi, Ryo |
| Abstract: | This study estimates the effect of farmer field schools in rural Ethiopia on income from agriculture. The farmer field schools were established in association with participatory forest management associations for forest protection funded by Japanese aid. We employ a difference-in-differences propensity score matching approach to correct for possible biases due to selection of participants. We find that by participating in the farmer field schools, agricultural households increased their real income per worker by about 60-160 US dollars on average, which is equivalent to, or even more than, the average income per worker before the project. We also find evidence that the large increase in income is due to the use of new agricultural practices, such as new varieties, taught and promoted in the farmer field schools. |
| Keywords: | impact evaluation , poverty alleviation , farmer field school , Ethiopia |
| Date: | 2011–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:jic:wpaper:30&r=dev |
| By: | Sawada, Yasuyuki; Ishii, Takaharu |
| Abstract: | In this paper, we investigate the role of a School Management Committee (COGES) in facili- tating social capital among community members and teachers. We employ unique data from Burkina Faso, where the COGES project was recently introduced. To determine the individual level of social capital of each community member and teacher, we conduct public goods games, one of the standard artefactual field experiments, with monetary rewards. Using in- strumental variable and propensity score matching methods, we obtain several findings. First, we find that the COGES project increases the level of social capital significantly. This finding is robust across different econometric specifications and methodologies. According to our point estimates, the amount of voluntary contribution to public goods increases by 16% to 27%. Second, the social capital facilitation effect of COGES varies based on the characteristics of the participant: while those who are more educated tended to have a lower level of social capital, Muslims have a higher level of social capital with COGES. Third, our qualitative re- sults are maintained if we use the subjective assessment data of social capital based on the General Social Survey (GSS) questions. |
| Keywords: | School Management Committee (COGES) , community participation , social capital , Burkina Faso , field experiments public goods game |
| Date: | 2012–03–28 |
| URL: | http://d.repec.org/n?u=RePEc:jic:wpaper:42&r=dev |
| By: | Maikel Lieuw-Kie-Song (Independent researcher and consultant) |
| Abstract: | What is the relevance of Africa?s second largest social protection programme, Ethiopia?s Productive Safety Net Programme (PSNP), for other countries and especially for India, Brazil and South Africa (IBSA)? Are there policy lessons to be noted and operational innovations to be learned from? At least in part, this paper sets out to answer these question by reviewing and analysing the employment and social-protection aspects of PSNP. Four aspects of PSNP were considered of potential interest and identified for further analysis, all of them interrelated to some degree. (?) |
| Keywords: | Integrating Public Works and Cash Transfers in Ethiopia: Implications for Social Protection, Employment and Decent Work |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:ipc:wpaper:84&r=dev |
| By: | Letty, Brigid (Institute of Natural Resources, South Africa); Shezi, Zanele (Farmer Support Group, University of KwaZulu-Natal); Mudhara, Maxwell (Farmer Support Group, University of KwaZulu-Natal) |
| Abstract: | The core of this paper consists of two case studies of 'grassroots' innovation led by innovative smallholder farmers in a village in South Africa - one about developing an alternative production practice for growing potatoes, and the other about introducing a new cash crop (cherry peppers) and the establishment of a new marketing relationship. One of the purposes of the study was to explore questions about the development of innovation indicators that might support policy and management concerned with this kind of innovation. The case studies are therefore located in the context of a review of existing science, technology and innovation indicators and their limitations with respect to this area of agricultural innovation. Another purpose was to identify and clarify the position of 'grassroots' innovation within other perspectives on different kinds of innovation system (or mode of innovation) in agriculture in developing countries. The case studies are also therefore set in the context of a review of literature about these other system perspectives, focusing in particular in 'formal' and 'informal' systems, and on 'grassroots' and 'participatory' modes of innovation involving interactions between formal and informal systems. The combination of case studies and broader reviews leads to two main conclusions: (1) grassroots and other participatory modes of agricultural innovation merit much greater policy attention than they have received; but (2) the base of available analysis and indicators about these approaches to innovation and their effectiveness is still inadequate to inform and support policy and management in this area. The paper therefore concludes with a discussion of steps that might be taken to improve the available information, understanding and indicators about these modes of innovation. |
| Keywords: | Agriculture, innovation, grassroots innovation, informal economy |
| JEL: | O13 O17 O33 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2012023&r=dev |
| By: | Naudé, Wim (UNU-MERIT/MGSoG, Maastricht University); Bezuidenhout, Henri (North-West University, Potchefstroom, South Africa) |
| Abstract: | How responsive are remittances to various disasters, both natural and human-made? And would remittances be affected by systemic financial crises (such as the 2008/09 financial crisis)? Using panel data on 23 Sub-Saharan African (SSA) countries over the period 1980 to 2007, we find that remittances are slow to respond to natural disasters, unresponsive to outbreaks of conflict, and will decline, albeit slowly, after a global financial crisis only to the extent that the crisis affects incomes, migration stocks, exchange rates, and the banking system. The relative persistence of remittances suggests that it is a good bulwark against natural disasters and global financial crises in SSA. |
| Keywords: | remittances, migration, disasters, global financial crisis, Africa |
| JEL: | F24 F22 O55 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2012026&r=dev |
| By: | Geraint Johnes; A Aggarwal; R Freguglia; G Spricigo |
| Abstract: | The impact of education on labour market outcomes is analysed using data from various rounds of the National Sample Survey of India. Occupational destination is examined using both multinomial logit analyses and structural dynamic discrete choice modelling. The latter approach involves the use of a novel approach to constructing a pseudo-panel from repeated cross-section data, and is particularly useful as a means of evaluating policy impacts over time. We find that policy to expand educational provision leads initially to an increased takeup of education, and in the longer term leads to an increased propensity for workers to enter non-manual employment. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:lan:wpaper:4355&r=dev |
| By: | Dang, Duc Anh |
| Abstract: | In this paper, I provide a new empirical evidence that natural environment can shape individual risk preferences. By combining historical data on climate variation and contemporary survey questions on risk aversion, I find that risk aversion is significantly different for people who live in areas that have suffered high frequency of natural disaster. In particular, individuals highly affected by climate volatility show a long term risk aversion. |
| Keywords: | Climate variation; risk aversion; Vietnam |
| JEL: | D03 O53 Q54 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38058&r=dev |
| By: | Simplice A, Asongu |
| Abstract: | This paper examines three relevant hypotheses on the incidence of health worker migration on human development and economic prosperity (at macro and micro levels) in Africa. Owing to lack of relevant data on Health Human Resource(HHR) migration for the continent, the subject matter has remained empirically void over the last decades despite the acute concern of health professional emigration. Using quantile regression, the following findings have been established. (1) The effect of HHR emigration is positive (negative) at low (high) levels of economic growth. (2) HHR emigration improves (mitigates) human development (GDP per capita growth) in low (high) quantiles of the distribution. (3)Specific differences in effects are found in top quantiles of human development and low quantiles of GDP per capita growth where the physician (nurse) emigration elasticities of development are positive (negative) and negative (positive) respectively. As a policy implication blanked health-worker emigration control policies are unlikely to succeed across countries with different levels of human development and economic prosperity. Hence the policies should be contingent on the prevailing levels of development and tailored differently across the most and least developed African countries. |
| Keywords: | Welfare; Health; Human Capital; Migration |
| JEL: | F22 O15 J24 D60 I10 |
| Date: | 2012–04–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38189&r=dev |
| By: | Simplice A, Asongu |
| Abstract: | This paper integrates two main strands of the aid-development nexus in providing additional information as to why institutional benchmarks (thresholds) matter for the effectiveness of aid in institutional development. Using seven government-quality dynamics (rule of law, regulation quality, government-effectiveness, political-stability, voice & accountability, corruption-control and democracy), we provide a thorough assessment of the aid-development nexus when existing institutional development levels matter. Results which are consistent across specifications and conditional distributions of institutional variables have three broad implications (with respect to three tested hypotheses). (1) Institutional benefits of foreign-aid are contingent on existing institutional levels in Africa. (2) But for a thin exception, foreign-aid is instrumental in institutional development for countries with low levels of institutional quality. (3) Institutional quality benefits of development assistance are questionable in countries with high levels of institutional development. As a policy implication, blanket policies based on the aid-development nexus are unlikely to be appropriate; therefore policy measures should be contingent on prevailing levels of institutional development and tailored differently across best and worst countries in terms of institutional development. |
| Keywords: | Foreign Aid; Political Economy; Development; Africa |
| JEL: | F35 F50 O55 O10 B20 |
| Date: | 2012–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38095&r=dev |
| By: | Simplice A , Asongu |
| Abstract: | Purpose – This paper examines whether initial levels in GDP growth, GDP per capita growth and inequality adjusted human development matter in the impact of aid on development. In substance its object is to assess if threshold development conditions are necessary for the effectiveness of foreign-aid in Africa. Design/methodology/approach – The panel quantile regression technique enables us to investigate if the relationship between development dynamics and development assistance differs throughout the distributions of development dynamics. Findings – Two main findings are established. (1) The effectiveness of aid in economic prosperity (at micro and macro levels) increases in positive magnitude across the distribution. This implies high-growth countries are more likely to benefit from development assistance (in terms of economic prosperity) than their low-growth counterparts. (2) Existing levels of human development do not affect the manner in which foreign-aid negatively affects human emancipation. Thus the negative incidence of aid on human emancipation is almost similar across the human development distribution. Practical implications – Two policy implications result. (1) Blanket policies on the aid-economic prosperity nexus are unlikely to succeed in Africa; thus policy measures should be contingent on prevailing levels of economic growth and tailored differently across high and low growth countries. (2) Common policies could be applied within the framework of the aid-human development nexus regardless of country-specific (existing) human emancipation levels. Originality/value – This paper contributes to existing literature on the effectiveness of foreign-aid by focusing on the distribution of the dependent variables (development dynamics). It is likely that high and low growth countries respond differently to development assistance. |
| Keywords: | Foreign Aid; Political Economy; Development; Africa |
| JEL: | F35 F50 O55 O10 B20 |
| Date: | 2012–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38094&r=dev |
| By: | d'Agostino, Giorgio; Dunne, Paul J.; Pieroni, Luca |
| Abstract: | This paper considers the effects of corruption and government spending on economic growth. It starts from an endogenous growth model and extends it to account for the detrimental effects of corruption on the potentially productive components of government spending, namely military and investment spending. The resulting model is estimated on a sample of African countries and the results show, first, that the growth rate is strongly influenced by the interaction between corruption and military burden, with the interaction between corruption and government investment expenditure having a weaker effect. Second, allowing for the cyclical economic fluctuations in specific countries leaves the estimated elasticities close to those of the full sample. Third, there are significant conditioning variables that need to be taken into account, namely the form of government, political instability and natural resource endowment. These illustrate the cross country heterogeneity when accounting for quantitative direct and indirect effects of key variables on economic growth. Overall, these findings suggest important policy implications. |
| Keywords: | corruption; military spending; development economics; panel data; Africa |
| JEL: | D73 H5 O57 |
| Date: | 2012–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38109&r=dev |