nep-dev New Economics Papers
on Development
Issue of 2013‒06‒30
nineteen papers chosen by
Mark Lee
Towson University

  2. Is Formal Employment Discouraged by the Provision of Free. Health Services to the Uninsured ? Evidence From a Natural Experiment in Mexico By Alejandro Del Valle
  4. Lineage and Land Reforms in Malawi: Do Matrilineal and Patrilineal Landholding Systems Represent a Problem for Land Reforms in Malawi? By Berge, Erling; Kambewa, Daimon; Munthali, Alister; Wiig, Henrik
  5. Revisiting Haiti´s Gangs and Organized Violence By Athena R. Kolbe
  6. Urban violence and humanitarian action in Medellin By Liliana Bernal Franco; Claudia Navas Caputo
  7. Local Warming and Violent Conflict in North and South Sudan By Margherita Calderone; Jean-Francois Maystadt; Liangzhi You
  8. Industrial Development through Takeovers and Exits: the Case of the Cut Flower Exporters in Ethiopia By Mano, Yukichi; Suzuki, Aya
  9. Successes and Failures in the Fight against Child Mortality in Sub-Saharan Africa: Lessons from Senegal By Gilles Pison; Laetitia Douillot; Géraldine Duthé; Malick Kante; Cheikh Sokhna; Jean-François Trape
  10. Local governance and the informal economy : experiences in promoting decent work in the Philippines By Indon, Reginald M; Yu, Sandra O
  11. Assessing South Africa's commission for conciliation, mediation and arbitration (CCMA) By Benjamin, Paul
  12. Disabled beggars in Addis Ababa, Ethiopia By Groce, Nora; Murray, Barbara; Loeb, Marie; Tramontano, Carlo; Trani, Jean Francois; Mekonen, Asfaw
  13. Real exchange rates, commodity prices and structural factors in developing countries By Vincent Bodart; Bertrand Candelon; Jean-François Carpantier
  14. Religion, Politician Identity and Development Outcomes:Evidence from India By Sonia Bhalotra; Guilhem Cassan; Irma Clots-Figueras; Lakshmi Iyer
  15. Legal tradition and quality of institutions : is colonization by french law countries distinctive ?. By Kirat, Thierry
  16. Essays on development economics. By Zenthöfer, A.F.
  17. Long-Run Fiscal Multiplier for Autonomous Prefectures in China By Yingxin Shi; Mototsugu Fukushige
  18. The State, Capital and Development in ‘Emerging’ India By Mazumdar, Surajit
  19. Foreign Aid, Legal Origin, Economic Growth and Africa’s Least Developed Countries By Wamboye, Evelyn; Adekola, Abel

  1. By: Ewa Lechman (Gdansk University of Technology, Gdansk, Poland); Anna Okonowicz (Gdansk University of Technology, Gdansk, Poland)
    Abstract: A kind of gender revolution is passing through various countries in various continents. By being offered free access to educational infrastructure, women become better educated, improve their skills and capabilities, gain possibilities to enter the labour market and use financial resources to start up their own businesses. All these bring women to play a role on the labour market and significantly contribute to overall socio-economic development. The women entrepreneurship unfolds various kinds of endowments concerning economic possibilities in wealth creation. The main scope of the paper is to identify and assess the role of gender equity and uniquely women entrepreneurship in the process of socio-economic development. Implying a set of variables, treated as proxies of gender equality and women entrepreneurship, we estimate their coherence with socio-economic development. In the empirical part, we use a cross-country panel data, for 83 economies, which are derived from World Development Indicators 2012 database International Monetary Fund World Economic Outlook Database April 2013. The time coverage is set for 1990-2011.
    Keywords: gender equity, women entrepreneurship, gender gap, economic development
    JEL: J16 J24 O15
    Date: 2013–06
  2. By: Alejandro Del Valle (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales [EHESS] - Ecole des Ponts ParisTech - Ecole normale supérieure de Paris - ENS Paris - Institut national de la recherche agronomique (INRA), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: This article analyzes whether the large scale provision of non-contributory health services encourages workers to move away from jobs that pay contributions to social security (formal employment). Using a difference-in-differences design, that exploits the variation generated by the municipal level roll-out of an intervention of this kind in Mexico, this paper finds that contemporaneous program exposure has no impact on the ratio of formal to total employed and that lagged exposure leads only to a small (0.78 percentage points) decrease. Two proxies of spillover effects further reveal that this estimate is robust and that the upper-bound of program effect is only moderately larger (1.5 percentage points).
    Keywords: Labor Markets ; Health Provision ; Informality ; Spillover Effects
    Date: 2013–06–24
  3. By: Dhillon, Amrita (Department of Economics, University of Warwik); Iversen, Vegard (Department of Economics, University of Manchester); Torsvik, Gaute (Department of Economics, University of Bergen)
    Abstract: We study an important mechanism underlying employee referrals into informal low skilled jobs in developing countries. Employers can exploit social preferences between employee referees and potential workers to improve discipline. The profitability of using referrals increases with referee stakes in the firm, and, in most cases, with the strength of the social tie between the referee and the new recruit. We provide an empirical counterpart to these results using primary data covering low- and unskilled migrants in India. Consistent with the theoretical predictions, we find a high prevalence of workplace referral and strong kinship ties between referees and new recruits. Finally, workplace intermediaries are different from and typically in more ‘prestigious’ jobs than those recruited.
    Keywords: networks; low- and unskilled jobs; India; moral hazard; employee referrals; efficiency wages; referee incentives; strength of ties
    JEL: D82 D86 J31 J41 O12 O17
    Date: 2013–06–12
  4. By: Berge, Erling (Centre for Land Tenure Studies, Norwegian University of Life Sciences); Kambewa, Daimon (University of Malawi); Munthali, Alister (Research Fellow at CSR); Wiig, Henrik (NIBR)
    Abstract: This paper is about land tenure relations among the matrilineal and patrilineal cultures in Malawi. Data from the National Agricultural and Livestock Census are used to characterize marriage systems and settlement and landholding patterns for local communities. Marriage systems correspond to customary land tenure patterns of matrilineal or patrilineal land holding. The differences between the two major ways of land holding represent a particular challenge for land reforms intending to unify rules for land tenure and land devolution. <p> The paper discusses the problems of formalisation and the idea of maintaining the diversity. If diversity is not respected there is a chance that some sections of society, especially communities with matrilineal land holding, might be victims of formalization. Based on analogy of the resilience of the patrilineal land holding system in Norway it is argued that a democratic system will have difficulty removing the preferential rights of linage members and it is recommended that the existing land rights are formally recognized and circumscribed by fair procedures. In a situation of diversity one goal of a well-designed land holding system should be to ease the transitions of the diverse customary tenure systems towards systems adapted to the requirements of a modern <p> large scale society rather than to a unified national system.
    Keywords: matrilinea; uxorilocal; patrilinea; virilocal; land tenur; inheritance; access rights; use rights; ownership rights; Malawi
    JEL: P48 Q15 Z13
    Date: 2013–06–18
  5. By: Athena R. Kolbe (University of Michigan, Ann Arbor and the Enstiti pou Travay Sosyal ak Syans Sosyal)
    Date: 2013–06
  6. By: Liliana Bernal Franco (CERAC); Claudia Navas Caputo (CERAC)
    Date: 2013–06
  7. By: Margherita Calderone (German Institute for Economic Research (DIW Berlin)); Jean-Francois Maystadt (International Food Policy Research Institute); Liangzhi You (International Food Policy Research Institute)
    Abstract: Weather shocks and natural disasters, it has been argued, represent a major threat to national and international security. Our paper contributes to the emerging micro-level strand of the literature on the link between local variations in weather shocks and conflict by focusing on a pixel-level analysis for North and South Sudan at different geographical and time scales between 1997 and 2009. Temperature anomalies are found to strongly affect the risk of conflict. Compared to the baseline, in the future the risk is expected to magnify in a range of 21 to 30 percent under a median scenario - taking into account uncertainties in both the climate projection and the estimate of the response of violence to temperature variations. Extreme temperature shocks are found to strongly affect the likelihood of violence as well, but the predictive power is hindered by substantial uncertainty. Our paper also sheds light on the vulnerability of areas with particular biophysical characteristics or with vulnerable populations.
    Date: 2013–06
  8. By: Mano, Yukichi; Suzuki, Aya
    Abstract: The exit and takeover of firms influence the structure and economic efficiency of an industry. The existing literature suggests that firms gradually learn about their own productivity. Some stagnate and ultimately exit if they encounter unfavorable prospects; others survive and grow. This selection process implies that the probability of firm exit initially increases with firm age as learning progresses before it eventually falls as learning is completed. We use a firm-level panel of Ethiopia’s cut flower industry to confirm this theoretical implication. The empirical results also suggest that takeover improves productivity and profitability of average firms endowed with a favorable business environment.
    Date: 2013–06
  9. By: Gilles Pison (Ined); Laetitia Douillot (Ined); Géraldine Duthé (Ined); Malick Kante (Ined); Cheikh Sokhna (Ined); Jean-François Trape (Ined)
    Abstract: Child mortality has declined in Sub-Saharan Africa over the last 60 years but the decrease has not been regular: it has accelerated over some periods, as during the last decade, and slowed down in others. This is not solely attributable to HIV/AIDS. This paper examines in detail the trends observed in Senegal, an example of a country with low HIV prevalence but where trends in mortality have resembled those of the whole region. Both national and local level data are used, in particular the data on mortality and causes of deaths produced by the demographic surveillance systems (DSS) in the three rural areas of Bandafassi, Mlomp and Niakhar. Although Senegal experienced an appreciable fall in under-five mortality from the end of World War II, the country experienced a fifteen year stagnation in child mortality in the late 1980s and 1990s. This halt was due to a slowdown in vaccination efforts and a resurgence of malaria mortality linked to the spread of chloroquine resistance. The decrease in malaria and other infectious diseases thanks to renewed vaccination efforts and investment in anti-malaria programmes appears to be the main factor responsible for the return to a very rapid decline in under-five mortality observed during the 2000s.
    Date: 2013
  10. By: Indon, Reginald M; Yu, Sandra O
    Keywords: local economic development, informal economy, Philippines, développement économique local, économie informelle, Philippines, desarrollo económico local, economía informal, Filipinas
    Date: 2012
  11. By: Benjamin, Paul
    Keywords: labour dispute settlement, conciliation, mediation, arbitration, labour legislation, comment, South Africa R, règlement des conflits du travail, conciliation, médiation, arbitrage, législation du travail, commentaire, Afrique du Sud R, arreglo de conflicto de trabajo, conciliación, mediación, arbitraje, legislación del trabajo, comentario, República de Sudáfrica
    Date: 2013
  12. By: Groce, Nora; Murray, Barbara; Loeb, Marie; Tramontano, Carlo; Trani, Jean Francois; Mekonen, Asfaw
    Keywords: begging, disabled person, disability, rights of disabled people, poverty, urban area, Ethiopia, mendicité, handicapé, incapacité, droits des personnes handicapées, pauvreté, zone urbaine, Ethiopie, mendicidad, persona con discapacidad, discapacidad, derechos de las personas con discapacidad, pobreza, zona urbana, Etiopia
    Date: 2013
  13. By: Vincent Bodart (University of Maastricht); Bertrand Candelon (IRES, Université catholique de Louvain); Jean-François Carpantier (CREA, University of Luxembourg)
    Abstract: This paper provides new empirical evidence about the relationship that may exist between real exchange rates and commodity prices in developing countries that are specialized in the export of a main primary commodity. It investigates how structural factors like the exchange rate regime, the degree of financial and trade openness, the degree of export concentration and the type of the commodity exports affect the strength of the commod- ity price-real exchange rate dependence.
    Keywords: Real exchange rates; commodity prices; exchange rate regime; financial openness; dynamic panel analysis;
    Date: 2013
  14. By: Sonia Bhalotra (University of Bristol); Guilhem Cassan (Center for Research in the Economics of Development, University of Namur); Irma Clots-Figueras (Universidad Carlos III de Madrid); Lakshmi Iyer (Harvard Business School)
    Abstract: This paper investigates whether the religious identity of state legislators in India influences development outcomes, both for citizens of their religious group and for the population as a whole. To control for politician identity to be correlated with constituency level voter preferences or characteristics that make religion salient, we use quasi-random variation in legislator identity generated by close elections between Muslim and non-Muslim candidates. We find that increasing the political representation of Muslims improves health and education outcomes in the district from which the legislator is elected. We find no evidence of religious favoritism: Muslim children do not benefit more from Muslim political representation than children from other religious groups.
    Keywords: religion, politician identity, infant mortality, primary education, India, Muslim
    JEL: I15 J13 H41 P16
    Date: 2013–06
  15. By: Kirat, Thierry
    Abstract: La littérature récente soutient que les traditions juridiques des nations, telles que leur appartenance au monde du droit civil ou de common law, ne sont pas neutres en termes de performances économiques ou institutionnelles, en particulier en ce qui concerne les principales opportunités dans les pays en développement à sortir de la pauvreté. Nous présentons les résultats d’une exploitation exploratoire de la «base de données des profils institutionnels» fourni par la DGTPE (Ministère français de l’Economie et des Finances) et l’Agence française de développement (enquête 2009) et des données sur l’origine légale et d’autres variables de La Porta et al. Nous mettons en évidence les spécificités des pays en développement ayant hérité de la loi française (par rapport à celles du droit anglais). Une réflexion sur le pouvoir politique et l’Etat trouve un fort contraste entre le modèle idéal-typique de la loi française et les résultats empiriques. Ce contraste est conforme à l’état réel de la notion plutôt que dans les anciennes colonies françaises.
    Abstract: Recent literature argues that legal traditions of nations, i.e. their belonging to the world of common law or civil law, are not neutral in terms of economic or institutional performance, especially with regard to key opportunities in developing countries out of poverty. We present the results of an exploratory exploitation of the “institutional profiles database” provided by DGTPE (French Ministry of Economy and Finance) and French Development Agency (survey 2009) supplemented by data on legal origin and other variables from La Porta et al. We highlight specificities of developing countries having inherited the French law (relative to those of English law). A reflection on political power and the state finds a strong contrast between the ideal-typical model of French law and the empirical findings. This contrast is consistent with the notion rather than real state in the former French colonies.
    Keywords: Colonisation; Pays en voie de développement; Influence française; Droit;
    JEL: O52 F54 B52
    Date: 2013
  16. By: Zenthöfer, A.F. (Tilburg University)
    Abstract: Abstract: The studies in this thesis investigate some of the effects of humanitarian aid and the production of natural resources in developing countries. The studies suggest that these “free lunches” can have negative (unintended) consequences. Even though it achieves its goal of increasing food consumption and life expectancy, humanitarian aid can have adverse effects on government expenditure for education, health, and military purposes. Commodity exports can negatively influence the rule of law, corruption, and political stability and can crowd out other economic activities. But if properly managed windfalls resulting from aid and natural resources can improve economic conditions.
    Date: 2013
  17. By: Yingxin Shi (Department of Economics & Management, Dalian Nationalities University); Mototsugu Fukushige (Graduate School of Economics, Osaka University)
    Abstract: We overcome the problems of data availability and investigate the fiscal multipliers in autonomous prefectures in China. We first estimate the long-run elasticity of gross regional production with respect to fiscal expenditure in autonomous prefectures, using autoregressive distributed lag models. The estimated long-run elasticity is much less than unity, however, and the estimated fiscal multipliers for prefectures are between 0.61 and 4.93, with an average of 1.93. These results indicate that additional fiscal expenditure is still effective in increasing local income and promoting economic growth for most of the autonomous prefectures.
    Keywords: Fiscal Multiplier; Autonomous Prefecture; China; autoregressive distributed lag model
    JEL: O11 E62 H72
    Date: 2013–06
  18. By: Mazumdar, Surajit
    Abstract: India’s story of the last two decades since the country made a transition to a liberal economic policy regime has many sides to it that may be considered somewhat remarkable in the light of her historical legacy. India has in this period certainly been an important part of the story of the ‘rise of the rest’ and appears to be one of the most successful cases of increased integration into the global economy despite her less remarkable history of industrialization. Instead of losing ground in global competition, Indian big business which till then had grown in the sheltered environment provided by protectionism has experienced a growth more rapid than in the past and stepped on to the global stage. Two decades of development under liberalization, however, has also had a very exclusive character, its narrow social base precluding the possibility of any broad social consensus on liberalization. The durability of such a process in the background of India’s long and stable history of having a formal political structure of representative democracy based on universal adult suffrage is then another of its remarkable features. This paper tries to explain how these phenomena that may appear surprising at first sight, are mutually interrelated and linked up with the process of liberalization itself.
    Keywords: 'Emerging' India, State and Capital, Liberalization and Development
    JEL: O1 O11 O14 O2 O53 P16
    Date: 2012–09
  19. By: Wamboye, Evelyn; Adekola, Abel
    Abstract: The issue of foreign aid dependency in African countries remains controversial among policy makers. So far, there is no consensus on aid effectiveness and the resulting policy prescriptions have been conflicting. The Euro zone which provides the bulk of foreign aid to developing countries, is currently implementing fiscal consolidation and some austerity programs. It is against this background that this study raises the question: What effects will such fiscal consolidation have on foreign aid flows? Therefore, the value of this study is the investigation of what really matters: The quantity or quality of foreign aid to support economic growth? We assess these issues within the framework of a country’s legal origin. The quantity effects are proxied by the quadratic term on the aid variable. Source-based proxies are used to measure the quality of aid effects. Our findings suggest that both quality and quantity of aid matters and that these effects differ based on a country’s legal origin.
    Keywords: Foreign aid; Economic growth; Legal origin; Least Developed Countries; Africa
    JEL: F35 F43 O1 O11 O19
    Date: 2013–04–01

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