nep-dev New Economics Papers
on Development
Issue of 2020‒11‒02
24 papers chosen by
Jacob A. Jordaan
Universiteit Utrecht

  1. Trade Liberalization and Political Violence: Evidence from North-South Preferential Trade Agreements By Francesco Amodio; Leonardo Baccini; Giorgio Chiovelli, and Michele Di Maio
  2. The Peace Baby Boom: Evidence from Colombia’s peace agreement with the FARC By Mari?a Elvira Guerra-Cu?jar; Mounu Prem; Paul Rodríguez-Lesmes; Juan F. Vargas
  3. The Effect of Antimalarial Campaigns on Child Mortality and Fertility in Sub-Saharan Africa By Wilde, Joshua; Apouey, Bénédicte; Coleman, Joseph; Picone, Gabriel
  4. The Evolutionary Origins of the Wealth of Nations By Quamrul H. Ashraf; Oded Galor; Marc P. B. Klemp
  5. Object Recognition for Economic Development from Daytime Satellite Imagery By Klaus Ackermann; Alexey Chernikov; Nandini Anantharama; Miethy Zaman; Paul A Raschky
  6. Unintended Consequences of Alternative Development Programs: Evidence From Colombia's Illegal Crop Substitution By Lucas Marín Llanes
  7. Selecting the Best of Us? Politician Quality in Village Councils in West Bengal, India By Ananish Chaudhuri; Vegard Iversen; Francesca R. Jensenius; Pushkar Maitra
  8. Explaining Firm-Level Gender Productivity Differential in Africa By Amira El-Shal; Hanan Morsy
  9. Ethnic diversity and informal work in Ghana By Sefa Awaworyi Churchill; Michael Danquah
  10. Contraception, Intra-household Behaviour and Epidemic: Evidence from the Zika crisis in Colombia By Cortés, D; Gamboa, L. F.; Rodríguez, P
  11. The Effects of International Scrutiny on Manufacturing Workers: Evidence from the Rana Plaza Collapse in Bangladesh By Bossavie, Laurent; Cho, Yoon Y.; Heath, Rachel
  12. Irrigation and Culture: Gender Roles and Women’s Rights By Fredriksson, Per G.; Gupta, Satyendra Kumar
  13. Social Identity, Behavior, and Personality By Utteeyo Dasgupta; Subha Mani; Smriti Sharma; Saurabh Singhal
  14. Demographic shocks and women’s labor market participation: evidence from the 1918 influenza pandemic in India By Fenske, James; Gupta, Bishnupriya; Yuan, Song
  15. Return Migration and Earnings Mobility in Egypt, Jordan and Tunisia By Vladimir Hlasny; Shireen AlAzzawi
  16. The determinants of the inequality in CO2 emissions per capita between developing countries By Emilio Padilla Rosa; Evans Jadotte
  17. Is sub-Saharan Africa deindustrializing? By Mensah, Emmanuel B.
  18. Electricity Sector Reform Performance in Sub-Saharan Africa: A Parametric Distance Function Approach By Asantewaa, Adwoa; Jamasb, Tooraj; Llorca, Manuel
  19. African Junta and Defense Spending: A Capture Effect or Self-Preservation? By Kodila-Tedika, Oasis; Khalifa, Sherif
  20. Does access to electricity affect poverty? Evidence from Côte d'Ivoire By Arouna Diallo; Richard Kouame Moussa
  21. Civil War Onset, Natural Resource Rents and Social Cohesion By Ibrahim El-Badawi; Hosam Ibrahim; Chahir Zaki
  22. Why are Africa's female entrepreneurs not playing the export game? Evidence from Ghana By Ackah, Charles Godfred; Görg, Holger; Hanley, Aoife; Hornok, Cecília
  23. Does value chain participation facilitate the adoption of industry 4.0 technologies in developing countries? By Delera, Michele; Pietrobelli, carlo; Calza, Elisa; Lavopa, Alejandro
  24. Working Less to Take Care of Parents? Labor Market Effects of Family Long-Term Care in Four Latin American Countries By Stampini, Marco; Oliveri, María Laura; Ibarrarán, Pablo; Londoño, Diana; Rhee, Ho June (Sean); James, Gillinda M.

  1. By: Francesco Amodio; Leonardo Baccini; Giorgio Chiovelli, and Michele Di Maio
    Abstract: This paper explores the micro-foundations of the trade-conflict nexus. We focus on the reduction of tariffs on agricultural imports from South countries to North countries as resulting from Preferential Trade Agreements. We combine the variation in agricultural tariffs over time with differences in crop suitability across districts within South countries. Our analysis covers 27 South countries and all their PTAs signed with major North countries between 1995 and 2014. Our approach rests upon the observation that differences in agro-climatic conditions within the country generate exogenous variation in suitability to produce different crops. Using 9km x 9km cells as unit of observations, we test if the North-South trade liberalization agreement affect levels of political violence and instability differentially in those districts that are more suitable to produce liberalized crops. We find robust evidence that in those cells, PTAs increase economic output and political violence, in line with the rapacity effect mechanism.
    Keywords: Political violence, trade, agriculture, preferential trade agreement.
    JEL: D22 D24 F51 N45 O12
    Date: 2020–06
  2. By: Mari?a Elvira Guerra-Cu?jar; Mounu Prem; Paul Rodríguez-Lesmes; Juan F. Vargas
    Abstract: Violent environments are known to affect household fertility choices, demand for health services and health outcomes of newborns. Using administrative data with a difference-in- differences strategy, we study how the end of the 50 years old Colombian conflict with FARC modified such decisions and outcomes in traditionally affected areas of the country. Results indicate that, after the start of permanent ceasefire in December 2014, the secular reduction of the total fertility rate was slowed down in municipalities traditionally affected by conflict. Total fertility rates increased in 2.6 percent in the formerly conflict-affected areas relative to the rest of the country. However, no impact was found for demand of health care services, neonatal and infant mortality rates, or birth outcomes such as the incidence of low weight at birth or the percentage of preterm births. Instead, our evidence shows that municipalities with landmine victims and that expelled internal refugees before the ceasefire have significantly higher total fertility rates in the four years following the ceasefire. We interpret these results as consistent with an increased optimism to raise children in a better environment, due to the sizable reduction in victimization in areas formerly violent areas.
    Keywords: Fertility, pregnancy, mortality, armed conflict, violence
    JEL: I12 I15
    Date: 2020–10–22
  3. By: Wilde, Joshua (Max Planck Institute for Demographic Research); Apouey, Bénédicte (Paris School of Economics); Coleman, Joseph (University of South Florida); Picone, Gabriel (University of South Florida)
    Abstract: We examine the extent to which recent declines in child mortality and fertility in Sub- Saharan Africa can be attributed to insecticide-treated bed nets (ITNs). Exploiting the rapid increase in ITNs since the mid-2000s, we employ a difference-in-differences estimation strategy to identify the causal effect of ITNs on mortality and fertility. We show that the ITN distribution campaigns reduced all-cause child mortality, but surprisingly increased total fertility rates in the short run in spite of reduced desire for children and increased contraceptive use. We explain this paradox in two ways. First, we show evidence for an unexpected increase in fecundity and sexual activity due to the better health environment after the ITN distribution. Second, we show evidence that the effect on fertility is positive only temporarily – lasting only 1-3 years after the beginning of the ITN distribution programs – and then becomes negative. Taken together, these results suggest the ITN distribution campaigns may have caused fertility to increase unexpectedly and temporarily, or that these increases may just be a tempo effect – changes in fertility timing which do not lead to increased completed fertility.
    Keywords: Malaria, bed nets, child mortality, fertility, Sub-Saharan Africa
    JEL: I15 J13 O10 O15
    Date: 2020–10
  4. By: Quamrul H. Ashraf; Oded Galor; Marc P. B. Klemp
    Abstract: This essay explores the deepest roots of comparative economic development. It underscores the significance of evolutionary processes since the Neolithic Revolution in shaping a society’s endowment of fundamental traits, such as predisposition towards child quality, time preference, loss aversion, and entrepreneurial spirit, that have contributed to differential paths of technological progress, human-capital formation, and economic development across societies. Moreover, it highlights the indelible mark of the exodus of Homo sapiens from Africa tens of thousands of years ago on the degree of interpersonal population diversity across the globe and examines the impact of this variation in diversity for comparative economic, cultural, and institutional development across countries, regions, and ethnic groups.
    Keywords: comparative development, human evolution, natural selection, preference for child quality, time preference, loss aversion, entrepreneurial spirit, the “out of Africa” hypothesis, interpersonal diversity
    JEL: O11 N10 N30 Z10
    Date: 2020
  5. By: Klaus Ackermann (SoDa Laboratories, Monash University); Alexey Chernikov (SoDa Laboratories, Monash University); Nandini Anantharama (SoDa Laboratories, Monash University); Miethy Zaman (SoDa Laboratories, Monash University); Paul A Raschky (SoDa Laboratories, Monash University)
    Abstract: Reliable data about the stock of physical capital and infrastructure in developing countries is typically very scarce. This is particular a problem for data at the subnational level where existing data is often outdated, not consistently measured or coverage is incomplete. Traditional data collection methods are time and labor-intensive costly which often prohibits developing countries from collecting this type of data. This paper proposes a novel method to extract infrastructure features from high-resolution satellite images. We collected high-resolution satellite images for 5 million 1km x 1km grid cells covering 21 African countries. We contribute to the growing body of literature in this area by training our machine learning algorithm on ground-truth data. We show that our approach strongly improves the predictive accuracy. Our methodology can build the foundation to then predict subnational indicators of economic development for areas where this data is either missing or unreliable.
    Keywords: satellite data, machine learning, physical capital, economic development, africa
    JEL: C55 O18 R11
    Date: 2020–09
  6. By: Lucas Marín Llanes
    Abstract: While force eradication through aerial spraying has large social costs, there is no evidence of the unexpected consequences of alternative development programs. This paper suggests an unintended effect of the largest crop substitution program in the world on political violence exploiting data on the recent Colombian program. The program¿s community agreements increased the rate of social leaders¿ killings by 546 %. My findings suggest a larger effect on municipalities where leaders oppose the expansion of illicit crops, organized crime does not hold consolidated power, different armed groups are present, and land conflicts exist. This paper contributes by providing empirical evidence in support of the hypothesis that policies aimed at reducing illicit crops have unintended consequences for local communities
    Keywords: Social leaders, Antidrug policies, Political violence, Colombia
    JEL: D72 D74 D78
    Date: 2020–10–06
  7. By: Ananish Chaudhuri; Vegard Iversen; Francesca R. Jensenius; Pushkar Maitra
    Abstract: Who gets elected to political office? The negative selection hypothesis posits that the inherently dishonest run for office, expecting to earn political rent. Alternatively, the positive selection hypothesis suggests that individuals join politics to make a difference. Developing country politicians are frequently stereotyped as embodiments of the negative selection hypothesis. Using survey and experimental data covering village councils in rural West Bengal, we find that inexperienced village council politicians are less dishonest and more pro-social than ordinary citizens. Our findings also suggest that this idealism wears off with time.
    Keywords: selection into politics, politician quality, corruption, experiments, behavioural games
    JEL: C93 O12 O53 Z18
    Date: 2020
  8. By: Amira El-Shal (African Development Bank); Hanan Morsy (African Development Bank)
    Abstract: The gender gap in firm productivity is the widest in Africa, and evidence on the determinants of this variation remains thin. We exploit a harmonized firm-level survey dataset of 46 African countries over the period 2006-2018 to explain the productivity gender differential and identify the association pathways. Special focus is placed on the behavior with respect to innovation and technology adoption and dealing with market inefficiencies and institutional barriers. We construct five composite indices to reflect the categories of productivity determinants and apply mean and quantile decomposition approaches. Our estimates indicate a significant productivity differential by the gender of entrepreneur in Africa, specifically in the Northern and Eastern regions. Interestingly, the differential is not induced by educational nor entrepreneurial abilities but rather by women being more negatively affected by institutional barriers, such as corruption and perceptions about it, and market inefficiencies, such as the lack of access to finance. These results can be explained by gender-based behavioral differences and institutional structures, which can as well affect women’s selection of business activity, making their firms less likely to benefit from some innovation and technology adoption activities.
    Date: 2020–10–20
  9. By: Sefa Awaworyi Churchill; Michael Danquah
    Abstract: We present the first study that examines the effects of ethnic diversity on informal work. Using two waves of data from the Ghana Socioeconomic Panel Survey, we find that ethnic diversity is associated with a higher probability of engaging in informal work. Specifically, our instrumental variable estimates suggest that a unit increase in ethnic diversity is associated with up to a 26.3 percentage point increase in the probability of engaging in informal work. This result is robust to alternative estimation approaches and alternative ways of measuring ethnic diversity.
    Keywords: Ethnic diversity, informal work, Informality, Trust, Ghana
    Date: 2020
  10. By: Cortés, D; Gamboa, L. F.; Rodríguez, P
    Abstract: We exploit the Zika outbreak in Colombia in 2015 to explore how a negative shock that puts at high risk the newborn’s health affects female behaviours associated with fertility, according to their marital status. The potential endogeneity of behaviours and the outbreak onset is avoided by using instrumental variables strategies in the context of an intensity-of-treatment difference-in-differences at the municipality level. While single women reduce sexual activity (the extensive margin), married women do not; instead, married women increase contraception in both the extensive margin and the intensive margin (they substitute less effective methods for more effective ones). This result is in line with a moral hazard model of fertility decisions within the couple. According to the model, not having a child may aggrieve the husband, and he may, in turn, become a "difficult" husband. In such a model, the ZIKV epidemic increases the use of women’s contraception and reduces the likelihood of men’s retaliation. We find no significant effects on intra-household violence exerted by men (i.e. physical and psychological violence or forced sex) nor reductions in the proportion of expenditures made by women. We do find that husbands of older women are less likely to have other sexual partners. There are heterogeneous effects across age groups and education level.
    Keywords: fertility; intra-household allocation; outbreaks; intimate partner violence
    JEL: D13 I12 I15 J13
    Date: 2020–10–01
  11. By: Bossavie, Laurent (World Bank); Cho, Yoon Y. (World Bank); Heath, Rachel (University of Washington)
    Abstract: After the tragic factory collapse of Rana Plaza in 2013, both the direct reforms and indirect responses of retailers have plausibly affected workers in the Ready Made Garment (RMG) sector in Bangladesh. These responses included a minimum wage increase, high profile but voluntary audits, and an increased reluctance to subcontract to smaller factories. This paper uses six rounds of the Labor Force Survey and adopts a synthetic control approach to evaluate the net effects of these changes on garment workers. While we find that working conditions did improve, we find evidence of adverse effects on several other outcomes for workers. In particular, while the reforms initially increased female workers' wages, their wages had fallen an estimated 20 percent three years after Rana Plaza. We also show suggestive evidence that female workers' contracts displayed a similar short-term increase and ultimate long-term decrease. Male workers, by contrast, if anything experienced only short-term adverse effects.
    Keywords: garment sector, working conditions, gender, minimum wage
    JEL: F16 J16 J31 J32 J81 O12
    Date: 2020–10
  12. By: Fredriksson, Per G.; Gupta, Satyendra Kumar
    Abstract: This paper proposes that ancestral use of irrigation reduces contemporary female labor force participation and female property rights. We test this hypothesis using an exogenous measure of irrigation and data from the Afrobarometer, cross-country data, the European Social Survey, the American Community Survey, and the India Demographic and Household Survey. Our hypothesis receives considerable empirical support. We find negative associations between ancestral irrigation and actual female labor force participation, and attitudes to such participation, in contemporary African and Indian populations, 2nd generation European immigrants, 1.5 and 2nd generation US immigrants, and in cross-country data. Moreover, ancestral irrigation is negatively associated with attitudes to female property rights in Africa and with measures of such rights across countries. Our estimates are robust to a host of control variables and alternative specifications. We propose multiple potential partial mechanisms. First, in pre-modern societies the men captured technologies complementary to irrigation, raising their relative productivity. Fertility increased. This caused lower female participation in agriculture and subsistence activities, and the women worked closer to home. Next, due to the common pool nature of irrigation water, historically irrigation has involved more frequent warfare. This raised the social status of men and restricted women's movement. These two mechanisms have produced cultural preferences against female participation in the formal labor market. Finally, irrigation produced both autocracy and a culture of collectivism. These are both associated with weaker female property rights.
    Keywords: Irrigation,agriculture,culture,gender,norms,labor force participation,property rights
    JEL: J16 J21 N50 O10 P14 Q15 Z13
    Date: 2020
  13. By: Utteeyo Dasgupta; Subha Mani; Smriti Sharma; Saurabh Singhal
    Abstract: Hierarchies in social identities have been found to be integrally related to divergences in economic status. In India, caste is one such significant social identity where continued discriminatory practices towards the lower castes have resulted in poor outcomes for them. While there is considerable work on such divergence on many economic outcomes along caste lines, there is no work on behavioral preferences and personality traits that can also be adversely affected by such identity hierarchies, and that are important determinants of educational attainments and labor market performances. We combine rich data from incentivized tasks and surveys conducted among a large sample of university students in a Seemingly Unrelated Regression framework and find that the historically marginalized Scheduled Castes and Scheduled Tribes (SCSTs) and Other Backward Classes (OBCs) fare worse than the upper castes along several dimensions of economic behavior such as competitiveness and confidence and personality traits such as grit, locus of control, and conscientiousness. Further, we find that parental investments only have limited compensatory effects on these gaps. This suggests a need for redesigning the structure of affirmative action policies in India as well as targeting interventions with an aim to improving soft skills among the disadvantaged.
    Keywords: Behavioral Preferences, Personality, Caste, Experiments, India
    JEL: I23 C9 C18 J24 O15
    Date: 2020
  14. By: Fenske, James (University of Warwick); Gupta, Bishnupriya (University of Warwick); Yuan, Song (University of Warwick)
    Abstract: How did the 1918 influenza pandemic affect female labor force participation in India over the short run and the medium run? We use an event-study approach at the district level and four waves of decadal census data in order to answer this question. We find that districts most adversely affected by influenza mortality saw a temporary increase in female labor force participation in 1921, an increase that was concentrated in the service sector. By 1931, this increase had been reversed. We find suggestive evidence that distress labor supply by widows and rising wages help account for these results
    Keywords: JEL Classification:
    Date: 2020
  15. By: Vladimir Hlasny (UN ESCWA); Shireen AlAzzawi (Santa Clara University)
    Abstract: We examine the role of cross-border return migration in the intertemporal and intergenerational transmission of status across seven surveys from Egypt, Jordan and Tunisia. We use transition matrices and instrumental variable regressions to link prime-age men’s present outcomes to those in prior years and to their fathers’ outcomes. Earnings in prior years are inferred using job-type and occupation-group cell means. We find that return migrants land higher-earning jobs and are more inter-generationally mobile. However, they outperform non-migrants not only currently but even in past years. Controlling for mitigating factors, the role of migration disappears, suggesting that individual-level effects and demographics are responsible.
    Keywords: Return migration, intergenerational socioeconomic mobility, MENA
    JEL: F22 O15 R23 J61 J62
    Date: 2020–10
  16. By: Emilio Padilla Rosa (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Evans Jadotte (World Bank, Macro Economics, Trade and Investment Global Practice)
    Abstract: We analyze the differences in CO2 emissions per capita between developing countries and how these are influenced by a series of affluence, structural, demographic and climatic variables. We first perform a regression analysis to ascertain the determinants of CO2 emissions, providing new evidence for the case of developing countries. The results indicate an N-shaped relationship with GDP per capita and a negative impact of the agriculture share and average daily minimum temperatures, while urbanization and the share of potentially active population would be positively correlated with emissions per capita. By using the regression-based inequality decomposition method, our analysis indicates the weight of each significant determinant in explaining the inequality in CO2 emissions per capita between developing countries. The main contributor to this inequality is economic affluence, while the potentially active population factor is the second main contributor. We study their change over time and the relevance of each factor in the changes experienced by inequality. Some of our results contrast with similar studies for more heterogeneous samples including developed countries. We derive some implications for environmental policy in developing countries.
    Keywords: CO2 emission drivers; CO2 emission inequality drivers; CO2 inequality; developing countries; regression-based inequality decomposition.
    Date: 2020–10
  17. By: Mensah, Emmanuel B. (UNU-MERIT, Maastricht University)
    Abstract: There is a general view that Africa is deindustrializing. We examine the extent to which the existing result is sensitive to sample size and new sectoral indicators. In addition to the usual linear fixed effect model, we use nonlinear panel data method that recognizes the fractional nature of manufacturing share of employment and output. We do not find convincing and robust evidence in support of the general view that Africa is deindustrializing prematurely. Manufacturing employment shares do not follow an inverse U-shape relationship. Conditional on income, population, and country-specific fixed effects, manufacturing output shares show positive and statistically significant trends over time. When we increase the coverage of countries to almost all countries in Africa, the results suggest that Africa is not deindustrializing, although there has not been any significant industrial development since the 1970s. This result masks important regional differences. A sub-regional analysis shows that East Africa is industrializing, whereas Southern Africa is the only region that seems to be deindustrializing. We examine the underlying drivers of manufacturing performance and discuss the implication for data collection and industrial policy in Africa.
    Keywords: Africa, de-industrialization, industrialization, industrial development, manufacturing, economic growth
    JEL: O14 O55
    Date: 2020–10–09
  18. By: Asantewaa, Adwoa (World Bank Group and Durham University Business School, Durham University, UK); Jamasb, Tooraj (Department of Economics, Copenhagen Business School); Llorca, Manuel (Department of Economics, Copenhagen Business School)
    Abstract: Since the late 1980s, electricity sector reforms have transformed the structure and organisation of the sector in many countries across the world. While the outcomes of reforms in developed and some developing countries have been extensively examined, there is limited analysis on the outcomes of the reforms in sub-Saharan Africa (SSA). This paper analyses the performance of electricity sector reforms in 37 SSA countries between 2000 and 2017. We use a Stochastic Frontier Analysis approach to estimate a multi-input-multi-output distance function to assess the impact of reform steps and institutional features on sector-level performance. The results indicate that reforms in SSA increased the installed generation capacity per capita and plant load factor but did not reduce technical network losses. Also, the presence of an electricity law, sector regulator, vertical unbundling, and private participation in the management of assets have a positive impact on reform performance. Perceptions of non-violent institutional features such as corruption, regulatory quality and governance effectiveness do not seem to have significant effect on reform performance, but perceptions of political stability, violence and terrorism influence reform outcomes. The effects of hydroelectric capacity on reform performance was found to be negligible while larger electricity systems were found to be more efficient reformers. We conclude that a workable reform in SSA involves vertical unbundling with an electricity law, a regulator and private ownership and management of assets where desirable. However, the positive outcomes go hand in hand with an increase of technical network losses, and hence emphasis should be placed on decoupling these losses from generation capacity and plant load factor.
    Keywords: Electricity Sector Reform; Sub-Saharan Africa; Institutions; Stochastic Frontier Analysis; Distance Function
    JEL: H54 L94 O13 P11 Q48
    Date: 2020–08–06
  19. By: Kodila-Tedika, Oasis; Khalifa, Sherif
    Abstract: This paper examines the effect of the presence of a military ruler on military expenditure using a panel of sub-Saharan Africa countries. The paper also explores whether the relationship reflects a capture effect, is an outcome of the confrontational climate of the cold war, or is an effort by military rulers for self-preservation. The Pooled OLS and fixed effects OLS estimations show that the presence of a military ruler has a statistically significant negative effect on military spending as a percentage of GDP. The coefficients are also not significantly different before or after the end of the cold war era. This implies that the negative relationship is driven by an effort by military rulers to preempt the ability of their peers to overthrow them from power. We also attempt to deal with potential endogeneity, and consider the possibility of persistence in military spending. The paper uses the Arellano and Bond (1991) estimation technique that shows a negative but insignificant effect of the presence of a military ruler on military expenditure, while military spending shows a high degree of persistence.
    Keywords: military rule, military spending
    JEL: H11 H56
    Date: 2020–10–16
  20. By: Arouna Diallo (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Richard Kouame Moussa (ENSEA - Ecole nationale supérieure de statistique et d'économie appliquée [Abidjan])
    Abstract: This paper investigates the effect of household's access to electricity on poverty in Côte d'Ivoire and how it has varied over the last two decades. The study shows a positive and significant effect of access to electricity on household consumption per capita. Access to electricity increases household consumption per capita by 5.2 to 23.3 percent. The results also highlight that the lower the regional rate of access to electricity, the higher the regional poverty rate. Policy should be designed to expand the access to electricity. Promoting renewable energy, improving the institutional framework, spreading the access to Solar Home System in off-grid areas and implementing incentive measures such as the reduction of customs and tax taxes on renewable energy equipment are measures that might help to combat energy and monetary poverty.
    Date: 2020–09–24
  21. By: Ibrahim El-Badawi (Economic research forum); Hosam Ibrahim (International Food Policy Research Institute); Chahir Zaki (Cairo University and ERF)
    Abstract: This paper examines the nexus between civil war onset, natural resource rents, and social cohesion. Indeed, the main hypothesis is centered on the role of the hydrocarbon resource in promoting conflicts, especially in societies characterized by discrimination. Hence, using a comprehensive dataset, this paper’s contribution is twofold. First, we test the non-linear effect of institutions and rents on the likelihood of civil war onset. Second, we introduce several measures of social cohesion and institutions. Our main findings show that both political institutions and rents have a non-linear effect on the outbreak of civil wars. Moreover, social cohesion variables measured by the share of discriminated population increases the probability of a civil war onset. These results remain robust in different econometric specifications, various estimation techniques and diverse measures.
    Date: 2020–09–20
  22. By: Ackah, Charles Godfred; Görg, Holger; Hanley, Aoife; Hornok, Cecília
    Abstract: We explore the export performance of Africa's underperforming female entrepreneurs, using the Ghanaian ISSER-IGC panel, a comprehensive dataset of manufacturing firms for 2011-2015. Uniquely, the data provides information about the severity of key business constraints, across both male and female entrepreneurs. We find that females are less likely to export (and optimize their exporting) than their male peers. Although reduced access to finance seriously constrains the exports of female entrepreneurs, this limitation does not explain their relative inability to leverage value from exports. Consistent with related work, we find that certain social and cultural constraints, in particular constraints linked to bribes and security concerns, are more deeply felt by female entrepreneurs. This may hint at the exclusion of Africa's females (voluntarily or involuntarily) from male-dominated networks or business practices.
    Keywords: female entrepreneurship,business constraints,productivity,exporting,Africa,Ghana
    JEL: D22 F14 J16
    Date: 2020
  23. By: Delera, Michele (UNU-MERIT, Maastricht University); Pietrobelli, carlo (UNU-MERIT, Maastricht University, and University Roma Tre); Calza, Elisa (UNU-MERIT, Maastricht University, and UNIDO); Lavopa, Alejandro (UNIDO)
    Abstract: The adoption of new technology is a key driver of firm performance and economic development. In this paper, we develop a framework for the firm-level analysis of the adoption of digital technology in developing economies. We investigate whether firms' participation to global value chains (GVCs) can facilitate the adoption of digital technologies. Using a novel database on the adoption of different generations of technology by manufacturing firms in Ghana, Vietnam, and Thailand, we document that the adoption of Industry 4.0 technologies remains extremely limited. We also find that firms' participation to GVCs is an important driver of digital technology adoption, and that adoption is positively associated with firm-level performance.
    Keywords: Value Chain, GVCs, Industry 4.0, Technology adoption, Economic development, Capabilities
    JEL: O12 O14 O33
    Date: 2020–10–12
  24. By: Stampini, Marco (Inter-American Development Bank); Oliveri, María Laura (Inter-American Development Bank); Ibarrarán, Pablo (Inter-American Development Bank); Londoño, Diana (University of Rosario); Rhee, Ho June (Sean) (Middlebury College); James, Gillinda M. (Middlebury College)
    Abstract: We use data from time-use surveys and the Mexican Health and Aging Study (MHAS) to analyze the relationship between family long-term care (LTC) and female labor supply in four Latin American countries. Time-use survey data from Chile, Colombia, Costa Rica and Mexico shows that: (i) women provide the vast majority of family LTC; (ii) consistently across countries, women who provide LTC are less likely to work, and those who do work less hours per week and have a double burden of work and LTC. Multivariate analysis of longitudinal MHAS data shows that, after accounting for both individual and time fixed effects, parents' need for LTC is associated with both a significant drop in the likelihood of working (by 2.42 percentage points) and a reduction in the number of hours worked among women ages 50–64 who remain employed (by 7.03%). This finding has important gender equality implications. Also, in a region that is aging faster than any other in the world, social trends make this family provision of LTC unsustainable, increasing the need for policy action.
    Keywords: female labor supply, Long-Term Care (LTC), elderly care, care dependence, time-use surveys, Mexican Health and Aging Study (MHAS), Latin America, Chile, Colombia, Costa Rica, Mexico
    JEL: J14 J16 J18 J21 J22
    Date: 2020–10

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