nep-dev New Economics Papers
on Development
Issue of 2014‒11‒17
fifteen papers chosen by
Jacob A. Jordaan
Universitiet Utrecht

  1. Does access to microfinance affect consumption inequality? :evidence from a randomized controlled trial in Andhra Pradesh, India By Mukhopadhyay, Jyoti Prasad
  2. Assessing the Political Impacts of a Conditional Cash Transfer: Evidence from a Randomized Policy Experiment in Indonesia. By Julia, Tobias; Sumarto, Sudarno; Moody, Habib
  3. Evaluating CCTs from A Gender Perspective: the Impact of Chile Solidario on Women’s Employment Prospect By Scarlato, Margherita; d'Agostino, Giorgio; Capparucci, Francesca
  4. Maintaining Local Public Goods: Evidence from Rural Kenya By Sheely, Ryan
  5. Ex-post Risk Management Among Rural Filipino Farm Households By Murata, Akira; Miyazaki, Suguru
  6. Diet quality, child health, and food policies in developing countries By Bhargava, Alok
  7. Conspicuous Consumption and Peer Effects among the Poor: Evidence From a Field Experiment By Christopher P Roth
  8. Gender and Ethnic Inequalities in LAC Countries. By Carla Canelas; Silvia Salazar
  9. Analysing the Effects of Crop Shocks on Child Work: the Case of the Morondava District in Madagascar By Augendra BHUKUTH; Jérôme BALLET; Bako Nirina RABEVOHITRA; Patrick RASOLOFO
  10. To What Extent Does the Adoption of Modern Variety Increase Productivity and Income? A Case Study of the Rice Sector in Tanzania By Nakano, Yuko; Kajisa, Kei
  11. Agricultural Production performance on Small farm holdings: Some Empirical Evidences from Bihar, India By Singh, R.K.P.; Kumar, Abhay; Singh, K.M.; Kumar, Anjani
  12. Business training plus for female entrepreneurship? Short And medium-term experimental evidence from Peru By Martin Valdivia
  13. Geopolitics, Aid and Growth By Dreher, Axel; Eichenauer, Vera; Gehring, Kai
  14. Determinants of poverty among ethnic minorities in the Northwest region, Vietnam By Quang Tran, Tuyen; Hong Nguyen, Son; Van Vu, Huong; Quoc Nguyen, Viet
  15. Does Infrastructure Facilitate Social Capital Accumulation? Evidence from Natural and Artefactual Field Experiments in a Developing Country By Aoyagi, Keitaro; Sawada, Yasuyuki; Shoji, Masahiro

  1. By: Mukhopadhyay, Jyoti Prasad
    Abstract: This paper examines the impact of access to microfinance on consumption inequality using panel data of 6080 households available from a randomized evaluation conducted by Banerjee et al. (2013) in 104 slums in Andhra Pradesh, India. We find that access to microcredit exacerbates consumption inequality both at the slum-level and the household-level. Further decomposition of inequality indices shows that this difference in consumption inequality is predominantly driven by expenditure on non-food items. However, once all households across treatment and control slums have equal access to microcredit in the long-run, the disparity in consumption inequality between treatment and control slums disappears. Our results also suggest that larger loan size and higher number of loan cycles completed by older microcredit borrowers do not cause any significant divergence in consumption inequality across treatment and control households. These results imply need for targeted livelihood support programmes for those who cannot participate in microcredit programmes.
    Keywords: microfinance, randomized controlled trial, inequality
    JEL: C23 D63 G21
    Date: 2014–07–03
  2. By: Julia, Tobias; Sumarto, Sudarno; Moody, Habib
    Abstract: Several developing nations, including Indonesia, have experimented with conditional cash transfers (CCTs) to poor households during recent years. Since 2007, Indonesia has been carrying out a randomized CCT pilot program (PNPM Generasi) in 1,625 villages where funds are disbursed to communities rather than households, and local councils allocate the funds to public projects following community input. In this paper, we explore political outcomes associated with the program, including electoral rewards for incumbents, and political participation. By comparing regions receiving the program with a control group, we estimate the CCT’s effects on political behavior in the 2009 elections for President and the national legislative assembly, and we also explore its effects on local politics. We find that the CCT program increases vote shares for legislative candidates from the incumbent president’s party, improves households’ satisfaction with district-level government administrative services, and decreases competition among presidential candidates as measured by the Herfindahl- Hirschman Index (HHI). We do not find conclusive evidence to support the hypothesis that the program increases votes for the incumbent President, and we find no evidence that the program significantly increases voter turnout or affects village-level politics.
    Keywords: Conditional Cash Transfer, Political behavior, Indonesia
    JEL: H3 H42 I3
    Date: 2014–02–03
  3. By: Scarlato, Margherita; d'Agostino, Giorgio; Capparucci, Francesca
    Abstract: This paper examines the effects of Chile Solidario programme on labour market outcomes from a gender perspective. Chile Solidario was implemented as the main anti-poverty programme in Chile in 2002. The purpose of this conditional cash transfer is to provide poor families with auxiliary social services, including support for employment. We compare the gender impact of Chile Solidario using difference-in-differences and regression discontinuity design estimations based on data from the Chile Solidario Panel Survey. We find that the programme has a strong impact on labour market outcomes, but the positive effects are particularly important for men in the beneficiary families. This analysis suggests that cash transfers should be targeted more specifically to women’s needs to contribute to their empowerment.
    Keywords: Social Protection; Conditional Cash Transfers; Latin America; Gender; Impact Evaluation
    JEL: C10 I38 J16 O15 O54
    Date: 2014
  4. By: Sheely, Ryan (Harvard University)
    Abstract: Political Scientists have produced a substantial body of theory and evidence that explains variation in the availability of local public goods in developing countries. Existing research cannot explain variation in how these goods are maintained over time. I develop a theory that explains how the interactions between government and community institutions shape public goods maintenance. I test the implications of this theory using a qualitative case study and a randomized field experiment that assigns communities participating in a waste management program in rural Kenya to three different institutional arrangements. I find that localities with no formal punishments for littering experienced sustained reductions in littering behavior and increases in the frequency of public clean-ups. In contrast, communities in which government administrators or traditional leaders could punish littering experienced short-term reductions in littering behavior that were not sustained over time.
    Date: 2013–12
  5. By: Murata, Akira; Miyazaki, Suguru
    Abstract: This study investigated the factors affecting the choice of coping strategies by rural Filipino farm households in the face of both covariate (or systemic) and idiosyncratic shocks. The study, conducted by the Japan International Cooperation Agency Research Institute (JICA-RI) in 2010, surveyed farm households in villages from three provinces in the Philippines. Using a multivariate probit model, the effects of shock attributes (i.e. coverage, intensity, and frequency), as well as both household and village characteristics were analyzed. The study found that in general, rural farm households rely mainly on the strategy of dissaving/selling assets regardless of shock attributes. However, in the face of idiosyncratic shocks, there is a greater probability that these households would count on borrowing/transfer as a coping option, while in the case of more frequent covariate shocks, they are more likely to reallocate labor. The findings from this study suggest the importance of the following factors in mitigating vulnerability and enhancing resilience: helping the farmers diversify sources of income and redistributing land ownership, improving agricultural infrastructure, and developing social insurance and social networks. For that purpose, there is a need for continuous agrarian reform including support for improvements in the agricultural infrastructure as well as for the further development of social protection.
    Keywords: Risk , vulnerability , coping strategies , covariate and idiosyncratic shocks , Philippines
    Date: 2014–03–04
  6. By: Bhargava, Alok
    Abstract: Although the importance of diet quality for improving child health is widely recognized, the roles of environmental factors and the absorption of nutrients for children's physical growth and morbidity have not been adequately integrated into a policy framework. Moreover, nutrient intakes gradually affect child health, so it is helpful to use alternative tools to evaluate short-term interventions versus long-term food policies. This article emphasizes the role of diet quality reflected in the intake of nutrients such as protein, calcium, and iron for children's physical growth. Vitamins A and C are important for reducing morbidity. Children's growth and morbidity affect their cognitive development, which is critical for the future supply of skilled labor and economic growth. Evidence on these issues from countries such as Bangladesh, India, Kenya, the Philippines, and Tanzania is summarized. The supply of nutritious foods is appraised from the viewpoint of improving diet quality. Finally, the roles of educational campaigns and indirect taxes on unhealthy processed foods consumed by the affluent in developing countries are discussed.
    Keywords: Health Monitoring&Evaluation,Food&Beverage Industry,Nutrition,Early Child and Children's Health,Population Policies
    Date: 2014–10–01
  7. By: Christopher P Roth
    Abstract: I use a randomised conditional cash transfer program from Indonesia to provide evidence on peer effects in consumption of poor households. I combine this with consumption visibility data from Indonesia to examine whether peer effects in consumption differ by a good’s visibility. In line with a model of conspicuous consumption, I find that the expenditure share of visible (nonvisible) goods rises (falls) for untreated households in treated sub-districts, whose reference group visible consumption is exogenously increased. Finally, I provide evidence on the mechanisms underlying the estimated spillovers using data on social interactions and social punishment norms. In line with Veblen’s (1899) claim that conspicuous consumption is more prevalent in societies with less social capital, I show that the peer effects in visible goods are larger in villages and for households with lower levels of social activities.
    Keywords: Conspicuous Consumption, Peer Effects, Relative Concerns, Spillovers,Social Interactions, Social Norms
    JEL: D12 C21 I38
    Date: 2014
  8. By: Carla Canelas (Centre d'Economie de la Sorbonne - Paris School of Economics); Silvia Salazar (Centre d'Economie de la Sorbonne - Paris School of Economics)
    Abstract: This article examines the structure of gender and ethnic wage gaps and the distribution of both paid and unpaid work in LAC countries. Its main contribution is to expose the double discrimination endured by women in the région. Indeed, the results indicate that women are highly discriminated in the job market and undertake most of the domestic activities in the household, allocating in average 40 hours per week to paid market activities and another 40 hours to in-home unpaid activities. The indigenous population also suffers from discrimination, but the wage gap in mainly explained by the difference in endowments, highlighting their limited access to education and their concentration in rural areas. The wage quantile decomposition results suggest the presence of sticky floor effects for both women and indigenous workers.
    Keywords: Inequality, ethnicity, gender, time-use.
    JEL: J22 J31 J71
    Date: 2014–03
  9. By: Augendra BHUKUTH; Jérôme BALLET; Bako Nirina RABEVOHITRA; Patrick RASOLOFO
    Abstract: In a context where credit is squeezed, the shocks to which household are exposed impact on child work. This article analyses the impact of a drought on the Morondava rural district in Madagascar in 2006. This is a rice growing area. We used data from the surveys conducted by the Réseau des Observatoires Ruraux (ROR) to test the validity of the effect of the shock on child labour, and to explore the impact of the credit squeeze and the relevance of buffer-stock hypothesis.
    Keywords: Child work, Buffer stocks, credit constraints, consumption smoothing.
    JEL: J82 J22 G20 O16
    Date: 2014
  10. By: Nakano, Yuko; Kajisa, Kei
    Abstract: Although high-yielding modern rice varieties (MVs) have been gradually disseminating over Sub-Saharan Africa, little is known about how their adoption influences agriculture productivity and household income. To fill this research gap, we analyzed two kinds of data sets in Tanzania: a national representative cross-sectional data and a two-year panel data of irrigated farmers in one district. The most important finding is a strong complementary relationship between MVs and water control; high yield is achieved when MVs are grown with improved bunds in paddy fields of irrigated areas. We also find that the use of chemical fertilizer and the practice of transplanting in rows increase yield and income of both the adopters and nonadopters of MVs in the irrigated areas. In rain-fed areas, we observe a limited impact of MVs. These findings suggest that introducing MVs as a package of technologies with agronomic practices is effective to fully achieve their potential. In the long run, development of irrigation would be important to realize a rice Green Revolution in Sub-Saharan Africa.
    Keywords: Modern Variety , Technology Adoption , Green Revolution , Sub-Saharan Africa , Tanzania
    Date: 2014–03–20
  11. By: Singh, R.K.P.; Kumar, Abhay; Singh, K.M.; Kumar, Anjani
    Abstract: Immediately after the green revolution period, there was an intense debate on the observed inverse relationship between farm size and per hectare agricultural productivity in India. It was subsequently argued that the higher productivity of small holdings would disappear with the adoption of superior technology, modernisation and growth in general. Recently, National Sample Survey data show that small holdings in Indian agriculture still exhibit a higher productivity than large holdings. This article contributes to the limited literature on farm size and productivity in small land holder's agriculture in Bihar, India. Plot wise panel data of VDSA project are used to reach at precise conclusion. The results provide evidence for a positive relationship between farm size and productivity in case of small land holders’ agriculture and hence, an inverse relationship does not seem to apply within small landholders’ agriculture. A strong positive relationship between farm size and output per hectare is a result of higher use of fertilizer, modern seeds and irrigation sources on comparatively larger land holders than small land holders in Bihar, India. It is mainly due to more uneconomic land holdings of sub-marginal and marginal farmers to have limited access to water resources, quality input and credit. Access to resources and technology must be considered together for any agricultural development programmes for small land holder's agriculture. It is therefore needed to look for ways of improving their access to resources for farming through increased opportunities for earning off farms and off season income or through improved credit market. Hence, small size and land fragmentation are key bottlenecks for the growth of agriculture in Bihar, India. The crop productivity of tiny landholders can be increased through improving their access to institutional financing system, agricultural extension network and farm technology centres. However, promotion of non-farm rural employment seems to be the most appropriate option for increasing crop productivity and improving livelihoods of small landholders in Bihar.
    Keywords: farm size, productivity, small landholders’ agriculture, Bihar, livelihood, adoption of modern technology
    JEL: O3 O33 Q0 Q12 Q15
    Date: 2014–08–15
  12. By: Martin Valdivia
    Abstract: With millions of women around the developing world thrown into self-employment but with low productivity, the question about how to increase the profitability and growth potential of their businesses is increasingly relevant for poverty reduction and gender equity. This study evaluates the impacts of a business development services program serving female microentrepreneurs in Lima using an experimental design, that included two treatment groups: One received only general training (GT), albeit more time-intense than previous studies, and delivered by experts, while the other received in addition technical assistance (TA). Results show the existence of room for efficiency gains and growth, as all treated showed increased sales revenues and self-reported adoption of recommended business practices, although timing differed. Those that received full treatment (GT+TA) were the only ones reporting increased sales 4-7 months after the end of the treatment, but GTonly treated were able to catch up about a year later. Low take up of the training may suggest some space to improve recruitment and delivery of good general business practices.
    Keywords: entrepreneurship, business training, gender equity
    JEL: C93 D1 D22 J24 O12
    Date: 2014
  13. By: Dreher, Axel; Eichenauer, Vera; Gehring, Kai
    Abstract: We investigate the effects of short-term political motivations on the effectiveness of foreign aid. Specifically, we test whether the effect of aid on economic growth is reduced by the share of years a country has served on the United Nations Security Council (UNSC) in the period the aid has been committed, which provides quasi-random variation in aid. Our results show that the relationship of aid with growth is significantly lower when aid has been committed during a country’s tenure on the UNSC. We derive two conclusions from this. First, short-term political favoritism reduces growth. Second, political interest variables are inadequate as instruments for overall aid, raising doubts about a large number of results in the aid effectiveness literature.
    Keywords: aid effectiveness; economic growth; politics and aid; United Nations Security Council membership; political instruments
    Date: 2014–10–21
  14. By: Quang Tran, Tuyen; Hong Nguyen, Son; Van Vu, Huong; Quoc Nguyen, Viet
    Abstract: This paper investigates both community and household determinants of poverty among ethnic minorities in the Northwest region, Vietnam. Results of a fractional logit and a logit model show that some household factors such as fixed assets, education, land and off-farm employment have a reducing effect on both poverty intensity and incidence. Furthermore, some commune characteristics were found to be closely linked to poverty. Notably, the presence of means of transportation and post offices reduces both the poverty intensity and incidence. However, other commune and household factors affect only the poverty incidence or intensity, but not both. This suggests that previous studies that focused only on the determinants of poverty incidence using a logit/probit approach might not adequately evaluate or even ignored the impact of some factors on the poverty intensity. We draw both socio-economic household and commune level implications for poverty alleviation in the study area.
    Keywords: shortfall, poverty incidence, poverty gap, poverty intensity, logit, fractional logit, national target program.
    JEL: I32 J15 O12
    Date: 2014–09–19
  15. By: Aoyagi, Keitaro; Sawada, Yasuyuki; Shoji, Masahiro
    Abstract: While social capital in general has been recognized as essential for economic activities, its accumulation mechanisms are largely unexplored. How does people’s trust toward others, one of the core dimensions of social capital, emerge? To shed new light on this largely unanswered question, we investigate the impact of physical infrastructure on social capital accumulation by comparing two hypotheses: the habit formation hypothesis and the repeated interaction hypothesis. We use a unique dataset from an irrigation project in Sri Lanka under a natural experimental situation where a significant portion of irrigated land was allocated through a lottery mechanism. Also, we look at the level of social capital using artefactual field experiments by a strategy method based on a within-subject design. By combining these two instruments, we find that physical distance embedded by irrigation systems explain variations in trust across irrigation communities, suggesting that the level of particularized trust is significantly higher than that of general trust. Also, within-community variation in particularized trust is driven largely by each individual’s years of access to irrigation and is not necessarily affected by social distance or repeated interaction among farmers. Our results indicate that social preference emerges from a technological environment set by physical access to irrigation, suggesting habit formation of pro-social behavior.
    Keywords: ural and artefactual field experiments , trust , social capital , irrigation
    Date: 2014–02–12

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