nep-dev New Economics Papers
on Development
Issue of 2013‒08‒16
fourteen papers chosen by
Mark Lee
Towson University

  1. The Value of Democracy: Evidence from Road Building in Kenya By Robin Burgess; Remi Jedwab; Edward Miguel; Ameet Morjaria; Gerard Padro i Miquel
  2. China and India: Reforms and the Response: How Differently have the Economies Behaved By Agarwal, Manmohan; Whalley, John
  3. Per-Unit Duties: Friends or Foes of Developing Country Exporters? By Charlotte Emlinger; Houssein Guimbard
  4. The Importance of Early Conscientiousness for Socio-Economic Outcomes: Evidence from the British Cohort Study By Bas ter Weel; Tyas Prevoo
  5. Typology of farm households and irrigation systems: Some evidence from Nigeria By Takeshima, Hiroyuki; Edeh, Hyacinth
  6. Population density, migration, and the returns to human capital and land: Highlights from Indonesia By Liu, Yanyan; Yamauchi, Futoshi
  7. Targeting technology to reduce poverty and conserve resources: Experimental delivery of laser land leveling to farmers in Uttar Pradesh, India: By Lybbert, Travis J.; Magnan, Nicholas; Spielman, David J.; Bhargava, Anil K.; Gulati, Kajal
  8. Comprehensive food security and vulnerability analysis: Nigeria: By Kuku, Oluyemisi; Mathiassen, Astrid; Wadhwa, Amit; Myles, Lucy; Ajibola, Akeem
  9. Local Warming and Violent Conflict in North and South Sudan: By Calderone, Margherita; Maystadt, Jean-Francois; You, Liangzhi
  10. Organizational and institutional issues in climate change adaptation and risk management: Insights from practitioners’ survey in Bangladesh, Ethiopia, Kenya, and Mali By Ragasa, Catherine; Sun, Yan; Bryan, Elizabeth; Abate, Caroline; Atlaw, Alumu; Keita, Mahamadou Namori
  11. Demand for weather hedges in India: An empirical exploration of theoretical predictions: By Hill, Ruth Vargas; Robles, Miguel; Ceballos, Francisco
  12. Agriculture and adaptation in Bangladesh: Current and projected impacts of climate change: By Thomas, Timothy S.; Mainuddin, Khandaker; Chiang, Catherine; Rahman, Aminur; Haque, Anwarul; Islam, Nazria; Quasem, Saad; Sun, Yun
  13. Socioeconomic Determinants of Child Health - Empirical Evidence from Indonesia By Subha Mani
  14. The heterogeneous effects of a food price crisis on child school enrollment and labor : evidence from Pakistan By Hou, Xiaohui; Hong, Seo Yeon

  1. By: Robin Burgess; Remi Jedwab; Edward Miguel; Ameet Morjaria; Gerard Padro i Miquel
    Abstract: Ethnic favoritism is seen as antithetical to development. This paper provides credible quantifi…cation of the extent of ethnic favoritism using data on road building in Kenyan districts across the 1963-2011 period. Guided by a model it then examines whether the transition in and out of democracy under the same president constrains or exacerbates ethnic favoritism. Across the 1963 to 2011 period, we fi…nd strong evidence of ethnic favoritism: districts that share the ethnicity of the president receive twice as much expenditure on roads and have four times the length of paved roads built. This favoritism disappears during periods of democracy.
    Date: 2013–08
  2. By: Agarwal, Manmohan (entre for International Governance Innovation); Whalley, John (University of Western Ontario)
    Abstract: The relative performance of China and India is compared using two different methods and they provide a very different picture of their relative performance. We compare the average absolute values of indictors for the decade of the 1980s, 1990s and the 2000s. We use indicators such as the current account balance (CAB), exports of goods and services (XGS), foreign direct investment inflow (FDI), gross domestic savings, gross fixed capital formation (GFCF), aid, private capital inflows (PrK) and workers’ remittances, all as a percentage of GDP. We also look at the growth rate of per capita GDP, exports of goods and services and of gross fixed capital formation. Using a two tailed- test we find that China does better than India for most of these indicators. For instance, China has a higher growth rate of per capita income, XGS and GFCF as also a higher share of XGS, GFCF etc in GDP than does India. We also find that China usually has a lower CV, namely a more stable performance. But over the three decades the CV falls in India so it is approaching that in China, namely the two economies are becoming more similar. We also compare the dynamic performance of the two economies since their reforms. We form index numbers for the indicators. So for example, we from an index number for share of exports in GDP with year 1 of reform in China being 100, i.e. the index for the share in 1979 is 100. Year 2 would be the index number for 1980, namely the value of the share in 1980 with the share in 1979 being 100, etc. In the case of India year 1 would be 1992 once the reforms started, year 2 would be 1993 and so on, so the index would have 1992 as the base year. We find that the indices behave very similarly in the two economies for many of the indicators, namely the pattern of change in China after 1979 is the same as in India after 1992.
    Keywords: China
    Date: 2013
  3. By: Charlotte Emlinger; Houssein Guimbard
    Abstract: Protectionist instruments such as tariffs can distort the prices of traded goods. This paper explores the impact of specific (per-unit) duties on patterns of agricultural trade. Specific duties may encourage countries to export higher priced products, leading to an “Alchian-Allen effect” on unit values. Their restrictive effect on trade values is smaller for developed compared to developing countries. It can be explained by the specialization of these countries on low-priced products and by the low level of quality differentiation among their exports. Our results highlight the discriminating nature of specific duties for low-income countries.
    Keywords: specific duties;agricultural trade;developing countries;trade unit values
    JEL: F13 F14 F15
    Date: 2013–07
  4. By: Bas ter Weel; Tyas Prevoo
    Abstract: This research estimates models of the importance of conscientiousness for socio-economic outcomes. We use measures of conscientiousness at age 16 to explain adult wages and other outcomes, such as crime, health and savings behaviour. <span style="font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: 'Times New Roman'; mso-bidi-theme-font: minor-bidi; mso-ansi-language: NL; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;"><span style="color: #000000;"><span style="font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: 'Times New Roman'; mso-bidi-theme-font: minor-bidi; mso-ansi-language: NL; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;">We use several waves from the 1970 British Cohort Study. Our estimates suggest a significant and sizeable correlation between early conscientiousness and adult outcomes. Measurement error is corrected for by applying IV-techniques, errors-in-variables estimators and structural equation modelling. Investigation of the lower-order structure of conscientiousness suggests that facets related to reliability, decisiveness and impulse control are most strongly correlated with outcomes. We also investigate changes in early conscientiousness and find that persons who experience declines in the personality distribution between the ages 10 and 16 seem to be worse off in terms of a variety of socio-economic outcomes.</span></span></span>
    JEL: J24
    Date: 2013–08
  5. By: Takeshima, Hiroyuki; Edeh, Hyacinth
    Keywords: Irrigation, household models, Typology, households, Farm households, Farm household model, Cluster analysis, Living Standard Measurement Survey (LSMS), rice, Grain, Vegetable products, legumes,
    Date: 2013
  6. By: Liu, Yanyan; Yamauchi, Futoshi
    Abstract: Rapid population growth in many developing countries has raised concerns regarding food security and household welfare. To understand the consequences of population growth on in the general equilibrium setting, we examine the dynamics of population density and its impacts on household outcomes using panel data from Indonesia. More specifically we explicitly highlight the importance of migration to urban sectors in the analysis. Empirical results show that human capital in the household determines the effect of increased population density on per capita household consumption expenditure. The effect of population density is positive if the average educational attainment is high (above junior high school), while it is negative otherwise.
    Keywords: Population growth, Migration, Land ownership, Rural economy, economic growth, Education, High value agriculture, Land rights, rural areas,
    Date: 2013
  7. By: Lybbert, Travis J.; Magnan, Nicholas; Spielman, David J.; Bhargava, Anil K.; Gulati, Kajal
    Abstract: Demand heterogeneity often makes it profitable for firms to price and promote goods and services differently in different market segments. When private consumption brings public benefits, this same heterogeneity can be used to target public subsidies. We explore the design of public–private targeting and segmentation strategies in the case of a resource-conserving agricultural technology in India. To understand farmers’ heterogeneous demand for laser land leveling (LLL), we conducted an experimental auction for LLL services with an integrated randomized controlled trial to estimate the private benefits of the technology. We use graphical and econometric approaches to characterize farmer demand for LLL. We then add detailed cost data from LLL providers to simulate and evaluate several potential targeted delivery strategies based on measures of (1) the cost-effectiveness of expanding LLL dissemination, (2) water savings, and (3) market surplus in a welfare framework. These simulations demonstrate inherent tradeoffs between increasing the amount of land that is leveled and expanding the number of farmers who adopt the technology, and between adoption and water savings. While segmenting and targeting are popular elements of many public–private partnerships to develop and disseminate agricultural technologies, formulating and implementing effective delivery strategies requires a rich understanding of costs, benefits, and demand. Our experimental approach generates such an understanding and may be relevant in other contexts.
    Keywords: conservation agriculture, resource management, demand heterogeneity, Market segmentation, Laser land leveling, technology targeting,
    Date: 2013
  8. By: Kuku, Oluyemisi; Mathiassen, Astrid; Wadhwa, Amit; Myles, Lucy; Ajibola, Akeem
    Abstract: The Nigerian Comprehensive Food Security and Vulnerability Analysis (CFSVA) provides an in-depth assessment of the food security situation within Nigeria. This is very important as it equips policymakers with timely and relevant information that will aid the targeting of interventions.
    Keywords: food security, Vulnerability, Nutrition, Livelihoods, Development strategies,
    Date: 2013
  9. By: Calderone, Margherita; Maystadt, Jean-Francois; You, Liangzhi
    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. 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.
    Keywords: Weather, Shocks, Conflict, Vulnerability,
    Date: 2013
  10. By: Ragasa, Catherine; Sun, Yan; Bryan, Elizabeth; Abate, Caroline; Atlaw, Alumu; Keita, Mahamadou Namori
    Abstract: This report provides some reflections and insights on the level of awareness, practices, and organizational and institutional issues being faced by countries as they adapt to climate change, based on interviews with 87 practitioners working in government agencies, local organizations, international organizations, and think thanks reporting involvement in climate change adaptation. Data were collected in Bangladesh, Ethiopia, Kenya, and Mali using both an e-survey platform and face-to-face interviews.
    Keywords: Climate change, analysis, Gender, Women, Risk, Resilience,
    Date: 2013
  11. By: Hill, Ruth Vargas; Robles, Miguel; Ceballos, Francisco
    Abstract: This paper analyzes the demand for rainfall-based weather hedges among farmers in rural India. We explore the predictions of a standard expected utility theory framework on the nature of demand for such products, in particular testing whether demand behaves as predicted with respect to price, the basis of the hedge, and risk aversion using data from a randomized control trial in which price and basis risk was varied for a series of hedging products offered to farmers. We find that demand behaves as predicted, with demand falling with price and basis risk, and appearing hump-shaped in risk aversion. Second, we analyze understanding of and demand for hedging products over time, examining the impact of increased investments in training on hedging products as well as evidence for learning by doing among farmers. We find evidence that suggests that learning by doing is more effective at increasing both understanding and demand.
    Keywords: index insurance, Economic theory, expected utility, weather index insurance, Risk, randomized experiment,
    Date: 2013
  12. By: Thomas, Timothy S.; Mainuddin, Khandaker; Chiang, Catherine; Rahman, Aminur; Haque, Anwarul; Islam, Nazria; Quasem, Saad; Sun, Yun
    Abstract: The goal of this research was to examine the likely impacts of climate change on agriculture in Bangladesh, and develop recommendations to policymakers to help farmers adapt to the changes. In this study, we use climate data from four general circulation models (GCMs) to evaluate the impact of climate change on agriculture in Bangladesh by 2050. We use the DSSAT (Decision Support System for Agrotechnology Transfer) crop modeling software to evaluate crop yields, first for the 1950 to 2000 period (actual climate) and then for the climates given by the four GCMs for 2050. We evaluate crop yields at 1,789 different points in Bangladesh, using a grid composed of roughly 10 kilometer (km) squares, for 8 different crops in 2000 and 2050. For each crop, we search for the best cultivar (variety) at each square, rather than limiting our analysis to a single variety for all locations. We also search for the best planting month in each square. In addition, we explore potential gains in changing fertilizer levels and in using irrigation to compensate for rainfall changes. This analysis indicates that when practiced together, using cultivars better suited for climate change and adjusting planting dates can lessen the impacts of climate change on yields, especially for rice, and in some cases actually result in higher yields. In addition, the analysis shows that losses in yield due to climate change can be compensated for, for many crops, by increasing the availability of nitrogen in the soil.
    Keywords: Climate change, Impact model, Adaptation, Agricultural productivity, Crop yields, Varieties,
    Date: 2013
  13. By: Subha Mani (Fordham University)
    Abstract: This paper characterizes the socioeconomic determinants of child health using height-for-age z-score (HAZ) - a long-run measure of chronic nutritional deficiency. We construct a panel data set that follows children between 3 and 59 months in 1993 through the 1997 and 2000 waves of the Indonesian Family Life Survey. We use this data to identify the various child level, household level and community level factors that affect children’s health. Our findings indicate that household income has a large and statistically significant role in explaining improvements in HAZ. We also find a strong positive association between parental height and HAZ. At the community level, we find that provision of electricity and availability of a paved road is positively associated with improvements in HAZ. Finally, in comparison to community level factors, household level characteristics have a large role in explaining the variation in HAZ. These findings suggest that policies that address the demand side constraints will have a greater potential to improve children's health outcomes in the future.
    Keywords: Child health, Panel data, Indonesia, Height
    JEL: I R D
    Date: 2013
  14. By: Hou, Xiaohui; Hong, Seo Yeon
    Abstract: Using a panel survey, this paper investigates how the increase in food prices in Pakistan in 2008-2010 affected children's school enrollment and labor. The causal identification relies on geographical variations in the price of food (wheat). The results show that the negative impacts of food price increase on school enrollment differ by gender, economic status, and the presence of siblings. The negative effects on school do not directly correspond to the increase in child labor because the transition from being idle to labor activity or from school to being idle are significant, particularly among the poor girls. The results also show that children in households with access to agricultural land are not affected by higher food prices. The analyses reveal a more dynamic picture of the impact of food price increase on child status and contribute to broader policy discussion to mitigate the impact of crises on children's education.
    Keywords: Food&Beverage Industry,Markets and Market Access,Youth and Governance,Street Children,Primary Education
    Date: 2013–08–01

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