nep-dev New Economics Papers
on Development
Issue of 2019‒02‒11
seventeen papers chosen by
Jacob A. Jordaan
Universiteit Utrecht

  1. On synthetic income panels By François Bourguignon; A. Hector Moreno M.
  2. A Governance Dividend for Sub-Saharan Africa? By Amine Hammadi; Marshall Mills; Nelson Sobrinho; Vimal V Thakoor; Ricardo Velloso
  3. Good things come in threes: multigenerational transmission of human capital By A. Hector Moreno M.
  4. African states and development in historical perspective: Colonial public finances in British and French West By Denis Cogneau; Yannick Dupraz; Sandrine Mesplé-Somps
  5. Do higher salaries yield better teachers and better student outcomes? By José María Cabrera; Dinand Webbink.
  6. The Hidden Role of Piped Water in the Prevention of Obesity in Developing Countries. Experimental and Non-Experimental Evidence. By Patricia I. Ritter
  7. Women Officers, Gender Violence and Human Capital: Evidence from Women's Justice Centers in Peru By Guadalupe Kavanaugh; Maria Sviatschi; Iva Trako
  8. Household shocks and utilization of preventive healthcare for children: Evidence from Uganda By Susmita Baulia
  9. The role of conflict in sex discrimination: The case of missing girls By Astghik Mavisakalyan; Anna Minasyan
  10. Fertility and Parental Labor-Force Participation: New Evidence from a Developing Country in the Balkans By Iva Trako
  11. Aid, Terrorism, and Foreign Direct Investment: Empirical Insight Conditioned on Corruption Control By Efobi, Uchenna; Asongu, Simplice; Beecroft, Ibukun
  12. To Pill or Not to Pill? Access to Emergency Contraception and Contraceptive Behaviour By Nuevo-Chiquero, Ana; Pino, Francisco J.
  13. Responsible use of crop protection products and Nigeria’s growth enhancement support scheme By Uduji, Joseph; Okolo-Obasi, Elda; Asongu, Simplice
  14. Program evaluation and ethnic differences: the Pension 65 program in Peru By DECANCQ Koen; OLIVERA Javier; SCHOKKAERT Erik
  15. Quantifying the Coherence of Development Policy Priorities By Omar A. Guerrero; Gonzalo Casta\~neda
  16. The Impact of Migration on Family Left Behind: Estimation in Presence of Intra-Household Selection of Migrants By Murard, Elie
  17. International Migration as Driver of Political and Social Change: Evidence from Morocco By Tuccio, Michele; Wahba, Jackline; Hamdouch, Bachir

  1. By: François Bourguignon (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique); A. Hector Moreno M. (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)
    Abstract: In many developing countries, the increasing public interest for economic inequality and mobility runs into the scarce availability of longitudinal data. Synthetic panels based on matching individuals with the same time-invariant characteristics in consecutive cross-sections have been proposed as a substitute to such data - see Dang and Lanjouw (2014). The present paper improves on the calibration methodology of such synthetic panels in several directions: a) it abstracts from (log) normality assumptions; b) it improves on the estimation of auto-correlation of unobserved determinants of (log) earnings; c) it considers the whole mobility matrix rather than mobility in and out of poverty. We exploit the cross-sectional dimension of a national-representative Mexican panel survey to evaluate the validity of this approach. The income mobility matrix in the synthetic panel calibrated on the former turns out to be very close to the observed matrix in the latter.
    Keywords: Synthetic panel,income mobility,Mexico
    Date: 2018–12
  2. By: Amine Hammadi; Marshall Mills; Nelson Sobrinho; Vimal V Thakoor; Ricardo Velloso
    Abstract: Countries in Sub-Saharan Africa (SSA) tend to lag those in most other regions in terms of governance and perceptions of corruption. Weak governance undermines economic performance through various channels, including deficiencies in government functions and distortions to economic incentives. It thus stands to reason that SSA countries could strengthen their economic performance by improving governance and reducing corruption. This paper estimates that strengthening governance and mitigating corruption in the region could be associated with large growth dividends in the long run. While the process would take considerable time and effort, moving the average SSA country governance level to the global average could increase the region’s GDP per capita growth by about 1-2 percentage points.
    Date: 2019–01–11
  3. By: A. Hector Moreno M. (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)
    Abstract: This paper examines the effect of grandparental education on their children's and grandchildren's educative outcomes. The endogeneity of parental schooling is addressed by the use of a two-fold instrumental variable approach. A natural experimental set up from a regional war that occurred in 1926 is exploited to instrument years of schooling of the "grand-parents" generation whereas labour market indicators serve as an instrument for the education of the "parents" generation. Using a nationally representative Mexican survey that gathers retrospective information on the three generations, the paper first shows that accounting for endogeneity unveils less mobility than ignoring it. This allows documenting more persistence of family background in the older pair of parent-child link than in the younger pair in the three generations at hand. Finally, results also suggest that the influence of the grandparents' educative legacy, conditional on parental education, does not seem to reach the grandchildren's generation.
    Keywords: multigeneration,education,Mexico
    Date: 2018–11
  4. By: Denis Cogneau (IRD - Institut de Recherche pour le Développement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics); Yannick Dupraz (University of Warwick [Coventry]); Sandrine Mesplé-Somps (DIAL - Développement, institutions et analyses de long terme, LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine, PSL - Paris Sciences et Lettres)
    Abstract: Why does it seem so difficultto build a sizeable developmenta state in Africa? Agrowing literature looks at the colonial roots of differences in economic development, often using the French/British difference as asource of variation to identify which features of the colonial pastmattered. We use historical archivestobuildanewdatasetofpublicfinancesin9Frenchand4Britishcoloniesof West Africa from 1900 to in dependence.Though we find some significant differences between French and British colonies, we conclude that over all patterns of public finances were similarin both empires. The most striking fact is the greatin crease in expenditure per capitain the last decades of colonization: it quadrupled between the end o World War II and independence. This increase inexpenditure was made possible partly by an increase incustoms revenue due to rising trade flows, but mostly by policy changes: netsubsidies from colonizers to their colonies became positive, while, within the colonies, direct and indirect taxation rates increased. We conclude that the last fifteen years of colonization area key period tounderstand colonial legacies.
    Keywords: state building,colonization,West Africa,Public finances
    Date: 2018–06
  5. By: José María Cabrera; Dinand Webbink.
    Abstract: We study the effects of a policy aimed at attracting more experienced and better qualified teachers in primary schools in disadvantaged neighborhoods in Uruguay. Teachers in these schools could earn higher salaries. Estimates from regression discontinuity models show that the policy increased experience by two to three years. The policy was especially successful in ‘hiring experience from other schools’, but also increased tenure. However, the effect on student outcomes appears to be small. The distinction between ‘hiring or keeping’ teachers seems important for explaining this result. Keeping teachers appears to be more beneficial for students than hiring experienced teachers. We also find that the effect of the policy is better for schools that replaced teachers with less than five years of experience.
    Keywords: teacher salaries, teacher experience, student performance, disadvantaged students
    JEL: I2 J24
    Date: 2018
  6. By: Patricia I. Ritter (University of Connecticut)
    Abstract: Child obesity in developing countries is growing at an alarming pace. This study investigates whether expanding access to piped water at home can contribute to stopping this epidemic. It exploits experimental data from Morocco and longitudinal data from the Philippines and finds that access to piped water at home reduces childhood obesity rates. This study further shows that the effect seems to be generated by a re-duction in the consumption of food prepared outside the home. Finally, the study shows that the effect of access to piped water on healthy nu-tritional status is hidden, when access to piped water at home reduces diarrhea prevalence, since this in turn increases BMI.
    Keywords: Obesity, diarrhea, piped water, soft drinks, food prepared outside the home
    JEL: I12 I18 H41 O12
    Date: 2019–01
  7. By: Guadalupe Kavanaugh (RUTGERS - Rutgers, The State University of New Jersey [New Brunswick]); Maria Sviatschi (Princeton University); Iva Trako (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Many developing countries have unequal access to justice, especially for women. What are the implications for gender-based violence, intra-household bargaining and investments in children? This paper provides quasi-experimental evidence on all-women's justice centers (WJCs) a community based approach aimed at reducing violence against women in Peru. WJCs are specialized institutions that mostly employ female officers and whose main purpose is to reduce gender-based violence by providing police and legal services. We examine the gradual rollout of these centers and using complaint police data we find that as victims trust women officers more, they increase the reporting of gender-specific crimes by 40%. We also find evidence that this led to the deterrence of gender-based violence: using administrative non-reported data from health providers and district attorney offices, we find a 10% reduction in domestic violence, female deaths due to aggression, femicides and mental health problems with no effects for men and non-gender specific crimes. We argue that these results are driven by an increase in women representation in law and enforcement at the WJCs. Moreover, we find inter-generational effects: WJCs substantially increase human capital investments in children, increasing enrollment, attendance, test scores, while decreasing child labor. These results are consistent with a bargaining model in which the threat point is determined by women representation in law and enforcement. In sum, the evidence in this paper implies that providing access to justice for women is not only important for addressing gender-based violence, but also generates inter-generational benefits.
    Keywords: gender-based violence,access to justice,children,household bargaining
    Date: 2018–06
  8. By: Susmita Baulia (University of Turku)
    Abstract: With four waves of panel data from the Uganda National Panel Survey, this paper investigates how households trade off investment in their children's preventive healthcare in times of income and health shocks. By using decrease in market price of agricultural output as proxy for negative income shock, and by measuring negative health shocks by illness of household members, I find evidence that probability of taking the child to get Vitamin A supplementation, as a part of immunization schedule, increases significantly if the household is hit by an income shock; similar evidence is obtained in case of health shock too. For health shock, the channel through which the effect takes place is the reduced opportunity cost of out-of-labour-market time; for income shock, buffer stock mechanism is instrumental in smoothing out of the shock and thus facilitating time investment in health-promoting activities for children. The main findings remain consistent under several robustness checks.
    Keywords: household shocks, preventive healthcare, child immunization, Uganda
    JEL: I12 I30 J13 O15
    Date: 2018–10
  9. By: Astghik Mavisakalyan (Bankwest Curtin Economic Centre, Curtin University); Anna Minasyan (Faculty of Economics and Business, University of Groningen)
    Abstract: Recent evidence shows that highly skewed sex ratios at birth are observed not only in China and India, but also for a number of countries in the Southeast Europe and South Caucasus - a region that has seen eruptions of conflicts following the collapse of communist regimes. Yet, the role of conflict has been largely overlooked in the relevant literature on ?missing girls?. We argue that conflict and group survival concerns can exacerbate the initial son bias and lead to relatively more male births once low fertility levels and access to ultrasound technology are given. We test our hypotheses in the context of Nagorno Karabakh conflict between Armenia and Azerbaijan. First, individual-level survey analysis from Armenia shows that relatively stronger concern over national security and territorial integrity is significantly associated with son preference. Second, difference-in-difference panel analysis of community-level census data shows that once ceasefire breaches between Armenia and Azerbaijan intensified, Armenian communities closer to the conflict region exhibited relatively higher sex ratios at birth.
    Keywords: discrimination, sex ratios, conflict
    JEL: D74 J13 J16 O15
    Date: 2018–06
  10. By: Iva Trako (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper examines the effect of fertility on parental labor-force participation in a developing country in the Balkans, with particular attention to the intervening role of childcare provided by grandparents in extended families. In order to address the potential endogeneity in the fertility decision, I exploit Albanian parental preference for having sons combined with the siblings sex-composition instrument as an exogenous source of variation. Using a repeated cross-section of parents with at least two children, I find a positive and statistically significant effect of fertility on parental labor supply for those parents who are more likely to be younger, less educated or live in extended families. In particular, IV estimates for mothers show that they increase labor supply, especially in terms of hours worked per week and the likelihood of working off-farm. Similarly, father's likelihood of working off-farm and having a second occupation increase as a consequence of further childbearing. The heterogeneity analysis suggests that this positive effect might be the result of two plausible mechanisms: childcare provided by non-parental adults in extended families and greater financial costs of maintaining more children.
    Keywords: fertility,parental labor-force participation,instrumental variables
    Date: 2018–07–03
  11. By: Efobi, Uchenna; Asongu, Simplice; Beecroft, Ibukun
    Abstract: This paper examines the effect of foreign aid in the terrorism-FDI nexus while considering the extent of domestic corruption-control (CC). The empirical evidence is based on a sample of 78 developing countries. The following findings are established: the negative effect of terrorism on FDI is apparent only in countries with higher levels of CC; foreign aid dampens the negative effect of terrorism on FDI only in countries with high levels of CC. The result is mixed when foreign aid is subdivided into its bilateral and multilateral components. Our findings are in accordance with the stance that bilateral aid is effective in reducing the adverse effect of terrorism on FDI. Multilateral aid also decreases the adverse effect of other forms of terrorism that can neither be classified as domestic nor as transnational. Policy implications are discussed.
    Keywords: Conflict; Developing countries; Foreign investment; Foreign aid; Terrorism
    JEL: D74 F21 F35
    Date: 2018–01
  12. By: Nuevo-Chiquero, Ana (University of Edinburgh); Pino, Francisco J. (University of Chile)
    Abstract: We examine the effects of free-of-charge availability of emergency contraception on contraceptive behaviour in Chile. Using a survey of individuals 15 to 29, we exploit variation in availability at the municipality level as a consequence of legal and judicial decisions in the late 2000s. We find an increase in the use of emergency contraception in municipalities in which it was available through the public health system, but also an increase in the use of other methods of hormonal, pre-coital contraception, and a decrease of more traditional contraceptive methods. This effect is concentrated among groups with a low starting use of contraceptives, who may benefit from the contact with the health services. Unlike previous results for developed countries, our results indicate that there is scope for an effect of emergency contraception in settings with low starting levels of contraceptive use, and a significant potential for policies to increase adoption of regular contraception.
    Keywords: emergency contraception, youth, contraceptive behaviour, risky behaviour
    JEL: I15 I18 J13
    Date: 2019–01
  13. By: Uduji, Joseph; Okolo-Obasi, Elda; Asongu, Simplice
    Abstract: We examine the impact of the federal government of Nigeria’s (FGN) growth enhancement support scheme (GESS) on responsible use of crop protection products (CPPs) in rural Nigeria. Results from the use of logistic regressions show that GESS significantly impact on farmers’ access to CPPs, but does not significantly impact on farmers’ knowledge and skill of CPP application, and in several cases the misuse has led to deterioration of soil fertility. Findings suggests that embracing information on recommended CPPs, dose rates, dilutions, timing, frequency of applications and precautions should form the foundation of GESS activity attributable to CPPs in sub-Saharan Africa.
    Keywords: Growth enhancement support scheme; crop protection products; Mobile technology; Smallholder farmers; Rural Nigeria
    JEL: L96 O40 O55 Q10 Q14
    Date: 2018–01
    Abstract: We show that the introduction of a non-contributory pension program (Pension 65) in Peru had remarkably different effects for its three main ethnic groups, i.e., Mestizo, Quechua, and Aymara. The Aymara beneficiaries of the program have experienced larger increases in health and life satisfaction compared to other Peruvians. Using a panel life satisfaction regression, we find evidence for preference heterogeneity between the Aymara and the other ethnic groups that is consistent with the observed differences. Finally, we turn to the question of how the pension program can be evaluated in a robust manner while respecting the preference heterogeneity between the ethnic groups. We propose the natural criterion that a program benefits a recipient if she is lifted to a higher indifference curve. We show that the pension program was beneficial for all groups, but that more Aymara beneficiaries were lifted to a higher indifference curve compared to other Peruvians. Our proposed criterion can be useful to evaluate programs in all cases where preference differences matter.
    Keywords: Program Evaluation; Ethnicity; Preferences; Pensions; Peru
    JEL: D12 I30 I38 O12
    Date: 2018–12
  15. By: Omar A. Guerrero; Gonzalo Casta\~neda
    Abstract: Over the last 30 years, the concept of policy coherence for development has received especial attention among academics, practitioners and international organizations. However, its quantification and measurement remain elusive. To address this challenge, we develop a theoretical and empirical framework to measure the coherence of policy priorities for development. Our procedure takes into account the country-specific constraints that governments face when trying to reach specific development goals. Hence, we put forward a new definition of policy coherence where context-specific efficient resource allocations are employed as the baseline to construct an index. To demonstrate the usefulness and validity of our index, we analyze the cases of Mexico, Korea and Estonia, three developing countries that, arguably, joined the OECD with the aim of coherently establishing policies that could enable a catch-up process. We find that Korea shows significant signs of policy coherence, Estonia seems to be in the process of achieving it, and Mexico has unequivocally failed. Furthermore, our results highlight the limitations of assessing coherence in terms of naive benchmark comparisons using development-indicator data. Altogether, our framework sheds new light in a promising direction to develop bespoke analytic tools to meet the 2030 agenda.
    Date: 2019–02
  16. By: Murard, Elie (IZA)
    Abstract: This paper reexamines the literature on the impact of migration on household members left behind at origin. The empirical problem previous studies address is the self-selection of households into migration, i.e. the endogenous decision as to whether or not send a migrant. Yet, the subsequent selection of which family members migrate and which stay behind generates additional identification problems that have remained largely ignored. To tackle this second form of selectivity within the households, I model the behavior of families using latent stratification and potential outcome (Imbens and Angrist, 1994; Rubin, 1974). I show that the point-identification of the causal impact of migration requires strong behavioral assumptions rarely satisfied even with ideal experimental data. As a practical solution, I derive non parametric bounds under different sets of weaker assumptions. Using Mexican panel data, I show that standard estimates ignoring the intra-household selection into migration may suffer from substantial bias.
    Keywords: selectivity, migration, sample selection, bounds, principal stratification
    JEL: C21 F22 J61 O15
    Date: 2019–01
  17. By: Tuccio, Michele; Wahba, Jackline; Hamdouch, Bachir
    Abstract: This paper focuses on the impact of international migration on the transfer of political and social norms. Exploiting recent and unique data on Morocco, it explores whether households with return and current migrants bear different political preferences and behaviours than non-migrant families. Once controlling for the double selection into emigration and return migration, findings suggest that having a returnee in the household increases the demand for political and social change, driven by returnees mostly from Western European countries, who have been exposed to more democratic norms at destination. However, we find a negative impact of having a current migrant on the willingness to change of the left-behind household, driven by migrants to non-West countries, where the quality of political and social institutions is lower. Our results are robust to also controlling for destination selectivity.
    Keywords: International migration,Political change,Transfer of norms,Morocco
    JEL: D72 F22 O15 O55
    Date: 2019

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