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on Development |
| By: | Roberto Bonfatti; Yuan Gu; Steven Poelhekke |
| Abstract: | Africa’s interior-to-coast roads are well suited to export natural resources, but not to support regional trade. Are they the optimal response to geography and comparative advantage, or the result of suboptimal political distortions? We investigate the political determinants of road paving in West Africa across the 1965-2012 period. Controlling for geography and the endogeneity of democratization, we show that autocracies tend to connect natural resource deposits to ports, while the networks expanded in a less interior-to-coast way in periods of democracy. This result suggests that Africa’s interior-to-coast roads are at least in part the result of suboptimal political distortions. |
| Keywords: | political economy, democracy, infrastructure, natural resources, development |
| JEL: | P16 P26 D72 H54 O18 Q32 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7478&r=all |
| By: | Laura Abramovsky (Institute for Fiscal Studies and Institute for Fiscal Studies); Britta Augsburg (Institute for Fiscal Studies and Institute for Fiscal Studies); Melanie Lührmann (Institute for Fiscal Studies and Royal Holloway, University of London); Francisco Oteiza (Institute for Fiscal Studies and EDePo @ Institute for Fiscal Studies); Juan Pablo Rud (Institute for Fiscal Studies and Royal Holloway) |
| Abstract: | We study the effectiveness of a community-level information and mobilization intervention to reduce open defecation (OD) and increase sanitation investments in Nigeria. The results of a cluster-randomized control trial in 246 communities, conducted between 2014 and 2018, suggest that average impacts are exiguous. However, these results hide important community heterogeneity, as the intervention has strong and lasting effects on OD habits in poorer communities. This result is robust across several measures of community socio-economic characteristics, and is not driven by baseline differences in toilet coverage. In poor communities, OD rates decreased by 9pp from a baseline level of 75%, while we find no effect in richer communities. The reduction in OD is achieved mainly through increased toilet ownership (+8pp from a baseline level of 24%). In terms of channels, the intervention appears to have raised the social status attached to toilet ownership among the poorer treated communities, and not in rich communities. Finally, we use data from our study and five other trials of similar interventions and show that estimated impacts on OD are stronger in poorer contexts, rationalizing the wide range of estimates in the literature and providing plausible external validity. |
| Keywords: | External validity, Heterogeneous Treatment Effects, Sanitation, Information, Cluster- Randomized Control Trial. |
| Date: | 2018–11–06 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:ifsewp:18/28&r=all |
| By: | Alberto Alesina; Sebastian Hohmann; Stelios Michalopoulos; Elias Papaioannou |
| Abstract: | We examine intergenerational mobility (IM) in educational attainment in Africa since independence, using census data from 26 countries. First, we map and characterize the geography of IM. There is substantial variation both across and within countries with differences in literacy of the old generation being the strongest correlate of IM. Inertia is stronger for rural, as compared to urban, households and present for both boys and girls. Second, we explore the correlates of mobility across more than 2,800 regions. Colonial investments in the transportation network and missionary activity are associated with upward mobility. IM is also higher in regions close to the coast and national capitals as well as in rugged areas without malaria. Upward mobility is higher and downward mobility is lower in regions that were more developed at independence, with higher urbanization and employment in services and manufacturing. Third, we identify the effects of regions on educational mobility by exploiting within-family variation from children whose families moved during primary school age. While sorting is sizable, there are considerable regional exposure effects. |
| JEL: | I24 J62 P16 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25534&r=all |
| By: | Serge Ky (LAPE - Laboratoire d'Analyse et de Prospective Economique - IR SHS UNILIM - Institut Sciences de l'Homme et de la Société - UNILIM - Université de Limoges); Clovis Rugemintwari (LAPE - Laboratoire d'Analyse et de Prospective Economique - IR SHS UNILIM - Institut Sciences de l'Homme et de la Société - UNILIM - Université de Limoges); Alain Sauviat (LAPE - Laboratoire d'Analyse et de Prospective Economique - IR SHS UNILIM - Institut Sciences de l'Homme et de la Société - UNILIM - Université de Limoges) |
| Abstract: | Access to and usage of formal financial services are important determinants of financial inclusion and yet, informal mechanisms still dominate the financial system in developing countries. In this context, the purpose of our paper is to investigate how the growing effort to harness mobile money may play a role to overcome barriers that prevent people to access formal financial services. Using a unique dataset obtained from an individual-level survey conducted in Burkina Faso, we explore the interplay between mobile money innovation as a deposit instrument and pre-existing formal and informal financial instruments. Our main findings show that, overall, the use of mobile money is not associated with deposits using formal and/or informal financial instruments. However, a closer investigation reveals suggestive evidence that it increases the probability of participants in informal mechanisms to make deposits in a bank account. Moreover, considering disadvantaged groups, we find for women, irregular income and less educated individuals that mobile money may increase their probability to make deposits in a bank and/or credit union accounts. Given the low access to formal financial services in developing countries, our findings taken together indicate how the increasing adoption of mobile money may act as a stepping-stone towards financial inclusion. |
| Keywords: | developing countries †,financial inclusion,mobile money,formal finance,informal finance,deposit behavior |
| Date: | 2019–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02000982&r=all |
| By: | Simone Bertoli (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Elie Murard (IZA - Institute for the Study of Labor) |
| Abstract: | The migration literature typically assumes that the migration of a household member is not associated with further variations in co-residence choices. We rely on a Mexican panel survey to provide novel evidence on the correlation between the occurrence of an international migration episode and changes in household composition. Migrant households have a higher probability of receiving a new member within one year around the migration episode. Attrition is significantly higher among migrant households, and we provide evidence that this is partly due to the dissolution of the household of origin of the migrant. The endogeneity of co-residence choices induces an undercount of migration episodes, as shown with data from the 2000 Census. This has implications for the analysis of migrant selection and of the effects on the individuals left behind. Dealing with these analytical challenges requires an approach to data collection that is less dependent on variations in household composition. |
| Keywords: | International migration,household composition,data collection,remittances |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01992909&r=all |
| By: | Pierre ANDRE (Université de Cergy-Pontoise); Esther DELESALLE (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)); Christelle DUMAS (University of Fribourg) |
| Abstract: | In developing countries, the opportunity costs of children's time can significantly hinder universal education. This paper studies one of these opportunity costs: we estimate the agricultural productivity of children aged 10 to 15 years old using the LSMS-ISA panel survey in Tanzania. Since child labor can be endogenous, we exploit the panel structure of the data and instrument child labor with changes in the age composition of the household. One day of child work leads to an increase in production value by roughly US$0.89. Children enrolled in school work 26 fewer days than nonenrolled children. Compensating enrolled children for loss in income can be accomplished with monthly payments of $1.92. However, a complete simulation of a hypothetical conditional cash transfer shows that even $10/month transfers would fail to achieve universal school enrollment of children aged 10 to 15 years old. |
| Keywords: | Child labor, Human capital investment, Conditional cash transfer, Farm house-hold, Production function, Tanzania |
| JEL: | D1 O1 J3 |
| Date: | 2019–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2019005&r=all |
| By: | Bonga-Bonga, Lumengo; Kinfack, Emilie |
| Abstract: | This paper assesses the relationship between trade openness and economic growth in Africa by accounting for the heterogeneity of African countries. In addition, the paper contributes to the literature of trade openness and economic growth nexus by applying the instrumental variable panel smooth transition regression (IVPSTR), a methodology that accounts for nonlinearity and endogeneity in the relationship between the two variables. The results of the empirical analysis reveal that the level of investment is a channel through which trade openness affects economic growth in the African continent. In addition, the relationship between trade openness and economic growth varies according to the degree of a country’s development in Africa. For low-income countries, the study finds no significant relationship between openness and growth. Conversely, for middle and upper-income countries, the coefficients of trade indicators are positive and statistically significant. The results indicate that African countries are not homogenous, especially with regard to trade openness and economic growth nexus. |
| Keywords: | economic growth, trade openness, non-linearity, instrumental variable panel smooth transition |
| JEL: | C23 C26 F13 F14 F15 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:92111&r=all |
| By: | Simplice A. Asongu (Yaoundé/Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa) |
| Abstract: | This research assesses the relevance of information and communication technology (ICT) in primary education quality in a panel of 49 Sub-Saharan African countries for the period 2000-2012. The empirical evidence is based on Two Stage Least Squares (2SLS) and Instrumental Quantile regressions (IQR). From the 2SLS: (i) mobile phone and internet penetration rates reduce poor quality education and enhancing internet penetration has a net negative effect of greater magnitude. From the IQR: (i) with the exception of the highest quantile for mobile phone penetration and top quantiles for internet penetration, ICT consistently has a negative effect on poor education quality with a non-monotonic pattern. (ii) Net negative effects are exclusively apparent in the median and top quantiles of internet-related regressions. It follows that enhancing internet penetration will benefit countries with above-median levels of poor education quality while enhancing internet penetration is not immediately relevant to reducing poor education quality in countries with below-median levels of poor education quality. |
| Keywords: | ICT; Primary school education; Development; Sub-Saharan Africa |
| JEL: | F24 L96 O30 O55 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:19/007&r=all |
| By: | Lucía Echeverria (CONICET and University of Mar del Plata); Martina Menon (University of Verona, Department of Economics); Federico Perali (University of Verona, Department of Economics); Miriam Berges (University of Mar del Plata) |
| Abstract: | Are two parents and single parents allocating household resources to children in the same way? Which factors affect intra-household inequality? Do mothers re-distribute more income to children as they are more empowered? We focus on child welfare in the context of two parent and single parent families, which is relevant for policy recommendation. We model households behavior in a collective framework, which allows us to understand the rule governing the allocation process between adults and children. Using consumption data from Argentina from three consecutive expenditures surveys (1996, 2004 and 2012) we analyze intra-household behavior over three different socio-economic contexts. We estimate a collective quadratic demand system following a structural approach to identify the fraction of total household expenditure that is devoted to children and adults, exploiting the observability of assignable goods. We provide the first evidence of intra-household inequality and individual poverty levels for Argentina. Our results indicate that family structure matters in the intra-household distribution. We find a positive gender bias in expenditure when children are females for both types of families, and we document that children fare better when mothers have a higher bargaining power in the allocation process, measured by their employment status. Further, we find several features of intra-household behavior which are persistent in time. |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:dls:wpaper:0241&r=all |
| By: | Tanvir Pavel (Department of Economics, Florida International University, Miami, USA); Syed Hasan (School of Economics and Finance, Massey University, Palmerston North, New Zealand); Nafisa Halim (Department of Global Health, Boston University, Boston, USA); Pallab Mozumder (Department of Earth and Environment and Department of Economics, Florida International University, Miami, USA) |
| Abstract: | We analyse internal migration triggered by natural disasters in Bangladesh. We conducted a survey in nine coastal districts and two major cities in Bangladesh to investigate whether floods and cyclones, which can be considered as transient shocks, affect interregional migration differently compared to riverbank erosion that causes loss of lands and thus generates shocks that are permanent in nature. Our findings suggest that transient shocks induce households to move to nearby cities while permanent shocks push people to big cities with more opportunities. Comparing income and expenditure of migrants and non-migrant households, we find that the former group is better-off relative to their counterpart, indicating that welfare can be improved\ by facilitating migration. Rising exposure to climate change induced natural disasters around the world imply that our findings will be increasingly relevant for designing policies to address vulnerability, particularly for disaster prone countries with weak social safety nets. |
| Keywords: | Climate change, Natural disaster, Coastal area, Permanent shock, Transient shocks, Internal migration |
| JEL: | I38 Q54 Q56 R23 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:mas:dpaper:1805&r=all |
| By: | Alex Armand (Institute for Fiscal Studies and University of Navarra (Spain)); Alexander Coutts (Institute for Fiscal Studies); Pedro C. Vicente (Institute for Fiscal Studies); Ines Vilela (Institute for Fiscal Studies) |
| Abstract: | The political resource curse is the idea that natural resources can lead to the deterioration of public policies through corruption and rent-seeking by those closest to political power. One prominent consequence is the emergence of conflict. This paper takes this theory to the data for the case of Mozambique, where a substantial discovery of natural gas recently took place. Focusing on the anticipation of a resource boom and the behavior of local political structures and communities, a large-scale field experiment was designed and implemented to follow the dissemination of information about the newly-discovered resources. Two types of treatments provided variation in the degree of dissemination: one with information targeting only local political leaders, the other with information and deliberation activities targeting communities at large. A wide variety of theory-driven outcomes is measured through surveys, behavioral activities, lab-in-the-field experiments, and georeferenced administrative data about local conflict. Information given only to leaders increases elite capture and rent-seeking, while information and deliberation targeted at citizens increases mobilization and accountability-related outcomes, and decreases violence. While the political resource curse is likely to be in play, the dissemination of information to communities at large has a countervailing effect. |
| Date: | 2019–01–22 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:ifsewp:19/01&r=all |
| By: | Patrick Plane (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Marie-Ange Veganzones-Varoudakis (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We study the interactions between firm-level innovation, productivity and exports in the case of the Indian manufacturing sector. To differentiate the incentives to innovate from the ability to innovate, we distinguish the inputs of innovation (R&D and training), from the outputs. Our findings highlight a virtuous circle between the three components of innovation, as well as between firm-level R&D, innovation and exports. The results suggest a positive effect of R&D on innovation (product innovation in particular), of innovation on exports (product and marketing innovation especially), and of exports on R&D. Furthermore, it seems that training and R&D reinforce each other in the Indian firm-level innovation process: doing R&D incites firms to train their workforce, and training stimulates R&D in return. Productivity of the Indian manufacturing firms seems to benefit from that dynamics, as exporting and innovating would improve firm-level TFP. As for the investment climate, our results suggest that the differences in the Indian firm-level environment participate in the firms' performance gaps. These results are all the more important in the context of the Make in India campaign and the business environment deficiencies. |
| Keywords: | Innovation,Productivity,Exports,Investment climate,Manufacturing,Firm-level data. |
| Date: | 2019–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01990327&r=all |