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on Development |
| By: | AfDB |
| Date: | 2013–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:adb:adbwps:446&r=dev |
| By: | Christophe Muller (Aix-Marseille University (Aix-Marseille School of Economics, EHESS & CNRS.); Marc Vothknecht (German Institute for Economic Research (DIW Berlin)) |
| Abstract: | We study the impact of violent conflict on social capital, as measured by citizen participation in community groups, defined by four activity types: governance, social service, infrastructure development and risk-sharing. Combining household panel data from Indonesia with conflict event information, we find an overall decrease in citizen contributions in districts affected by group violence in the early post-Suharto transition period. However, participation in communities with a high degree of ethnic polarization is less affected, and is even stimulated for local governance and risk-sharing activities. Moreover, individual engagement appears to depend on the involvement of other members from the same ethnic group, which points toward building of intra-ethnic social networks in the presence of violence. Finally, our results show the danger of generalization when dealing with citizen participation in community activities. We find a large variety of responses depending on the activity and its economic and social functions. We also find large observed and unobserved individual heterogeneities of the effect of violence on participation. Once an appropriate nomenclature of activities is used and controls for heterogeneity are applied, we find that the ethnic and social configuration of society is central in understanding citizen participation. |
| Keywords: | Violent Conflict, Citizen Participation, Local Public Goods |
| JEL: | D74 H42 O11 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:1306&r=dev |
| By: | Bussière, M.; Delle Chiaie, S.; Peltonen, T. A. |
| Abstract: | This paper estimates export and import price equations for 40 countries – including 19 emerging market economies (EMEs) – and aims to understand heterogeneity across countries in the degree of exchange rate pass-through to import and to export prices. Results indicate that (i) the elasticities of trade prices are sizeable in EMEs, and higher on average than in advanced economies for export prices; (ii) such elasticities are primarily influenced by macroeconomic factors; (iii) export and import price elasticities tend to be strongly correlated across countries; (iv) lower exchange rate pass-through in the United States, compared to other advanced economies, can be related to the geographical distribution of U.S. imports, more heavily concentrated in countries with high elasticity of export prices. Overall, these results yield an enhanced understanding of exchange rate pass-through, emphasizing the role of external factors. |
| Keywords: | emerging market economies; exchange rate pass-through; terms of trade. |
| JEL: | F10 F30 F41 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:424&r=dev |
| By: | Sanghamitra Bandyopadhyay and Elliott Green |
| Abstract: | Evidence on the pre-modern relationship between wealth and fertility has so far almost entirely relied upon data from Europe. We use British colonial records from early 19th-century India on widow suicides (satis) to show that there is a robust positive relationship between income and fertility. |
| Keywords: | fertility, wealth, early colonial India |
| JEL: | J45 H11 J23 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:cgs:wpaper:41&r=dev |
| By: | Crespi, Gustavo (Competitiveness and Innovation Division, Inter-American Development Bank); Tacsir, Ezequiel (UNU-MERIT/MGSoG) |
| Abstract: | This study examines the impact of process and product innovation on employment growth and composition in Argentina, Chile, Costa Rica, and Uruguay using micro data from innovation surveys. Based on the model put forward by Harrison et al. (1998), employment growth is related to process innovations and to the growth of sales separately due to innovative and unchanged products. Results show that compensation effects are pervasive and that the introduction of new products is associated with employment growth at the firm level. No evidence of displacement effects due to the introduction of product innovations was observed. With respect to the impact of innovation on employment composition, there is scant evidence of a skill bias, although product innovation is more complementary to skilled than to unskilled labour. |
| Keywords: | innovation, employment, developing countries, Latin America, innovation surveys |
| JEL: | O12 O14 O31 O33 O40 J21 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013001&r=dev |
| By: | Aghion, Philippe (Harvard University, NBER, and CIFAR.); Akcigit, Ufuk (University of Pennsylvania and NBER.); Howitt, Peter (Brown University and NBER.) |
| Abstract: | Schumpeterian growth theory has “operationalized” Schumpeter’s notion of creative destruction by developing models based on this concept. These models shed light on several aspects of the growth process which could not be properly addressed by alternative theories. In this survey, we focus on four important aspects, namely: (i) the role of competition and market structure; (ii) firm dynamics; (iii) the relationship between growth and development with the notion of appropriate growth institutions; (iv) the emergence and impact of long-term technological waves. In each case Schumpeterian growth theory delivers predictions that distinguish it from other growth models and which can be tested using micro data. |
| Keywords: | Creative destruction; entry; exit; competition; firm dynamics; reallocation; R&D; industrial policy; technological frontier; Schumpeterian wave; general purpose technology |
| JEL: | O10 O11 O12 O30 O31 O33 O40 O43 O47 |
| Date: | 2013–02–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0298&r=dev |
| By: | Ahlerup, Pelle (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | Natural disasters plague the populations of many countries, and the international community often seeks to alleviate the human suffering by means of humanitarian aid. Do natural disasters also have negative effects on aggregate economic growth? This paper shows that natural disasters on average have a positive association with subsequent economic performance. This overall positive association is driven by the experience of democratic developing countries that receive humanitarian aid.<p> |
| Keywords: | natural disasters; economic growth; humanitarian aid. |
| JEL: | O11 Q54 |
| Date: | 2013–02–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0553&r=dev |
| By: | Pierre-Richard Agénor; Baris Alpaslan |
| Abstract: | This paper develops a three-period, gender-based overlapping generations model of endogenous growth with endogenous intra-household bargaining and child labor in home production by girls. Improved access to infrastructure reduces the amount of time parents find optimal for their daughters to spend on household chores, thereby allowing them to allocate more time to studying at home. The model is calibrated for a low-income country and various quantitative experiments are conducted, including an increase in the share of public spending on infrastructure, an increase in time allocated by mothers to their daughters, and a decrease in fathers' preference for girls' education. Our analysis shows that poor access by families to infrastructure may provide an endogenous explanation for the persistence in child labor at home and gender inequality in low-income countries. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:man:cgbcrp:181&r=dev |
| By: | Paul Collier; Tony Venables |
| Abstract: | In many African countries a market for private provision of formal sector mass housing is largely absent. This is not inevitable, but is the consequence of policy failure surrounding five key issues. The affordability of housing, with costs often inflated by inappropriate building regulations and inefficient construction sectors; lack of clarity in land titling and legal enforcement; lack of innovation in supply of housing finance; failure to supply supporting infrastructure and to capture development gains to finance this; and failure to plan cities in a manner conducive to employment creation. Since responsibility for these policies is divided between different parts of government, a coordinated push is needed to secure reform and activate this market. |
| Date: | 2013–01–09 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:wpaper:wps/2013-01&r=dev |
| By: | Cristina Bodea; Adrienne LeBas |
| Abstract: | How do social contracts come into being? This paper argues that norm adoption plays an important and neglected role in this process. Using novel data from urban Nigeria, we examine why individuals adopt norms favoring a citizen obligation to pay tax where state enforcement is weak. We find that public goods delivery by the state produces the willingness to pay tax, but community characteristics also have a strong and independent effect on both social contract norms and actual tax payment. Individuals are less likely to adopt pro-tax norms if they have access to community provision of security and other services. In conflict-prone communities, where "self-help" provision of club goods is less effective, individuals are more likely to adopt social contract norms. Finally, we show that social contract norms substantially boost tax payment. This paper has broad implications for literatures on state formation, taxation, clientelism, and public goods provision. |
| Date: | 2013–01–24 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:wpaper:wps/2013-02&r=dev |
| By: | Charlot, Olivier (THEMA, University of Cergy-Pontoise); Malherbet, Franck (CREST, Ecole Polytechnique, IZA and fRDB); Ulus, Mustafa (Galatasaray University Economic Research Center) |
| Abstract: | This paper studies the effects of the introduction of unemployment compensation (UC) in countries characterized by pervasive informality. We provide a simple framework to analyze the impact of UC on the allocation of workers between formal and informal activities, as well as the allocation of workers between sectors featuring different incentives to go informal. We show that a reasonable amount of UC may reduce informality, while larger amounts of UC induce large disincentives to go formal because of the level of taxation involved. We also argue that the financing of UC should be part and parcel of a well- conceived UC system. We show that UC finance based on payroll taxes is likely to entail an excess level of informality resulting from cross-subsidies between heterogenous sectors. The introduction of a simple layoff tax meant to finance the UC system is then shown to reduce informality, hence highlighting how a well-designed financing scheme may be used as a supplementary instrument to curb informality. |
| Keywords: | Informality; Labor Market Imperfections; Unemployment Insurance |
| JEL: | E24 E26 J60 L16 O10 |
| Date: | 2013–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:ris:giamwp:2013_003&r=dev |
| By: | Cameron, Lisa; Shah, Manisha; Olivia, Susan |
| Abstract: | Lack of sanitation and poor hygiene behavior cause a tremendous disease burden among the poor. This paper evaluates the impact of the Total Sanitation and Sanitation Marketing project in Indonesia, where about 11 percent of children have diarrhea in any two-week period and more than 33,000 children die each year from diarrhea. The evaluation utilizes a randomized controlled trial but is unusual in that the program was evaluated when implemented at scale across the province of rural East Java in a way that was designed to strengthen the enabling environment and so be sustainable. One hundred and sixty communities across eight rural districts participated, and approximately 2,100 households were interviewed before and after the intervention. The authors found that the project increased toilet construction by approximately 3 percentage points (a 31 percent increase in the rate of toilet construction). The changes were primarily among non-poor households that did not have access to sanitation at baseline. Open defecation among these households decreased by 6 percentage points (or 17 percent). Diarrhea prevalence was 30 percent lower in treatment communities than in control communities at endline (3.3 versus 4.6 percent). The analysis cannot rule out that the differences in drinking water and handwashing behavior drove the decline in diarrhea. Reductions in parasitic infestations and improvements in height and weight were found for the non-poor sample with no sanitation at baseline. |
| Keywords: | Health Monitoring&Evaluation,Hygiene Promotion and Social Marketing,Housing&Human Habitats,Disease Control&Prevention,Early Child and Children's Health |
| Date: | 2013–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6360&r=dev |
| By: | Hartmann, Dominik; Pyka, Andreas |
| Abstract: | In this paper we bridge a gap between innovation economics and the human development approach by analyzing positive and negative effects of different types of economic diversification on social welfare. Economic variety is a driver and outcome of economic development. However, diversification leads to ambiguous effects on the well-being of human agents: on the one hand, increasing variety augments the freedom of human agents to choose. On the other hand, it can overburden their capabilities to make economic decisions and can deteriorate their well-being. It becomes clear that human development policy has to go hand in hand with an industrial policy that promotes qualitative economic diversification. Depending on its dynamics, this diversification can be achieved via related and unrelated variety. We can expect a better design of development policies from a better understanding of the co-evolutionary development of variety, freedom of choice and well-being. -- |
| Keywords: | innovation,economic diversification,human development |
| JEL: | O10 O54 E11 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fziddp:652013&r=dev |