nep-dev New Economics Papers
on Development
Issue of 2022‒09‒05
fourteen papers chosen by
Jacob A. Jordaan
Universiteit Utrecht

  1. The Long-Term Impact of High School Financial Education: evidence from Brazil By Miriam Bruhn; Gabriel Garber; Sergio Koyama; Bilal Zia
  2. Uncovering the role of education in the uptake of preventive measures against Malaria in the African population By Kempter, Elisabeth; Upadhayay, Neha Bhardwaj
  3. Fish to fight: does catching more fish increase conflicts in Indonesia? By Lu, Yifan; Yamazaki, Satoshi
  4. Does democracy guarantee the resilience of African economies? Analysis based on a duration model By Koffi, Siméon
  5. Women's Political Representation and Intimate Partner Violence By Anukriti, S; Erten, Bilge; Mukherjee, Priya
  6. Regional Differences in Intersectoral Linkages and Diverse Patterns of Structural Transformation By Paul, Saumik; Raju, Dhushyanth
  7. Socioeconomic impacts of land restoration in agriculture: A systematic review By Malan, Mandy; Berkhout, Ezra; Duchoslav, Jan; Voors, Maarten; van der Esch, Stefan
  8. Duration of Support and Financial Health of Business Support Structures in Burkina Faso, Cameroon, and Ghana: A Micro-Econometric Analysis By Jean C. Kouam; Simplice A. Asongu; Bin J. Meh; Robert Nantchouang; Fri L. Asanga; Denis Foretia
  9. The Mexican drug war: Elections and homicides By García-Ramos, Aixa
  10. Can domestic institutions affect exports and innovation?: Mediation effects of institutional quality on manufacturing sector exports and innovation in developing countries By Achinthya Koswatta
  11. Mobile internet, skills and structural transformation in Rwanda By Caldarola, Bernardo.; Grazzi, Marco.; Occelli, Martina.; Sanfilippo, Marco.
  12. Group-Specific Redistribution, Inequality, and Subjective Well-Being in China By Peihua Deng; Ronnie Schöb
  13. Assessing the Affordability of Nutrient-Adequate Diets By Kate R. Schneider; Luc Christiaensen; Patrick Webb; William A. Masters
  14. The impact of climate change on economic output in Chile: past and future By Karla Hernández; Carlos Madeira

  1. By: Miriam Bruhn; Gabriel Garber; Sergio Koyama; Bilal Zia
    Abstract: In 2011, the impact of a comprehensive financial education program was studied through a randomized controlled trial with 892 high schools in six Brazilian states. Using administrative data, this paper follows 16,000 students for the next nine years. The short-term findings were that the treatment students used expensive credit and were behind on payments. By contrast, in the long-term treatment, students were less likely to borrow from expensive sources and to have loans with late payments than control students. Treatment students were also more likely to own microenterprises and less likely to be formally employed than control students.
    Date: 2022–07
  2. By: Kempter, Elisabeth; Upadhayay, Neha Bhardwaj
    Abstract: In many African countries where malaria is endemic, this life-threatening disease is a leading cause of death. What role does education, in particular numeracy and literacy, play in malaria prevention and treatment-seeking? In this study we apply a birth cohort approach, which allows us to cover a time span of 60 years, and therefore, to provide a comprehensive view on the evolution of malaria prevention and treatment-seeking attitudes adapted among sub-Saharan African cohorts born during the 20th century. We use three different indicators to measure malaria control behavior: the share of respondents using insecticide-treated bednets (ITNs), the share of pregnant women taking antimalarial drugs, and the share of respondents taking their child to a medical facility when suffering from malaria symptoms like fever and cough. Our descriptive results suggest that younger birth cohorts are more likely to adapt malaria control measures than older ones. Based on a sample of 33 African countries, 407 regions, and a total of 1,960 observations, we perform multiple regressions using the pooled OLS estimator. We find that being numerate as well as being literate is positively associated with malaria protection and health-seeking behavior, though the numeracy coefficients are of larger magnitudes indicating that numeracy is at least as important as literacy. While malaria prevention and treatmentseeking behavior is complex and influenced by unobservables, we cannot control for, we account for the most relevant factors like gender, socio-economic status, topology, and urbanrural settings. Our findings show that in addition to education, the involvement of women in health-care decision-making, as well as the exposure to media, is positively correlated with malaria control. On the other hand, we find that a low socio-economic status makes the adaption of adequate malaria prevention and treatment-seeking behavior more difficult. In highly elevated regions and regions with lower precipitation, where malaria is less prevalent, people seem to pay less attention to protection measures. Finally, while malaria is more acute in rural regions, in urban areas antimalarial drugs are also commonly used for protection.
    Keywords: malaria,sub-Saharan Africa,insecticide-treated bednets (ITNs),numeracy,literacy
    JEL: H75 I12 I15 I18
    Date: 2022
  3. By: Lu, Yifan (Tasmanian School of Business & Economics, University of Tasmania); Yamazaki, Satoshi (Tasmanian School of Business & Economics, University of Tasmania)
    Abstract: To what extent do marine-based economic activities influence the onset of violent conflict? Despite ongoing debate over several decades around the relationship between natural resources and violent conflict, little of the relevant research has addressed the marine environment. Based on satellite data in Indonesia, this paper provides new evidence on the relationship between fisheries and violent conflict. From a sample of 757 cells representing the spatial interaction of conflict and catch landings in 2015 and employing ocean productivity as an exogenous instrument, both industrial and non-industrial catches were found to have a statistically significant positive effect on the number of conflict events. Additionally, increased illegal, unreported and unregulated (IUU) catches are more likely than legal catches to cause violent conflict. An increase in fish catches in Indonesian waters fuels conflict of every kind, among which protests and riots are most sensitive to fisheries while fighting and terrorism are least sensitive. Overall, these empirical findings support the hypothesis that increased competition for common-pool resources contributes to the onset of violent conflict.
    Keywords: conflict, illegal fishing, marine resources, ocean productivity, satellite data, Indonesia
    JEL: D74 O13 Q22
    Date: 2022
  4. By: Koffi, Siméon
    Abstract: Based on a panel of 144 developing countries for the period from 1960 to 2020 and using the duration model, our estimates focused on two (02) groups of countries, namely African countries, and countries outside Africa. For the latter, the results showed that democracy is a factor that strengthens their resilience insofar as it intervenes to support growth spells in the event of negative external shocks. In other words, democracy lengthens the duration of growth spells and promotes more resilient and sustainable growth. For African countries, however, the opposite effect occurs. Indeed, African countries with democratic regimes have a much shorter growth survival rate than autocratic ones.
    Keywords: duration model, resilience, growth spells
    JEL: C10 C18 C4
    Date: 2022–08–01
  5. By: Anukriti, S (World Bank); Erten, Bilge (Northeastern University); Mukherjee, Priya (University of Wisconsin-Madison)
    Abstract: We estimate the impact of female leaders on intimate partner violence experienced by women in districts from which they are elected. Exposure to female leaders in state legislatures in India increases the likelihood that female constituents in rural areas report experiencing physical violence from their husbands. This effect can be explained by an increase in women's modern contraceptive use—resulting from improvements in public provision of health services in exposed districts—which leads to marital conflict, especially when the husband has a stronger preference for sons relative to the wife.
    Keywords: intimate partner violence, female leaders, elections, India, contraception, representation
    JEL: D72 J16 J13
    Date: 2022–06
  6. By: Paul, Saumik (Newcastle University); Raju, Dhushyanth (World Bank)
    Abstract: Intersectoral linkages can act as shock propagation channels and shape the pattern of structural transformation. To our knowledge, no research has examined how subnational differences in intersectoral linkages impact such spillover effects. We hypothesize that regional differences in local economic shocks diversify intersectoral linkages, and, consequently, produce divergent patterns of structural transformation across regions. Using novel regional input-output tables and existing enterprise censuses for Ghana, we test and find support for four predictions related to this hypothesis: (1) a recent, positive mining output shock that occurred in the south of Ghana leads to growing differences in intersectoral linkages between the north and the south of the country, (2) the effect of the mining output shock on output and productivity growth in other sectors differs across regions in line with changes in the patterns of intersectoral linkages, (3) the elasticity of employment in other sectors with respect to the change in employment in mining closely follows the regional patterns of intersectoral linkages, and (4) variation in the mining output shock across time and space explains the variation in the rate of firm entry and average firm-level employment in sectors (such as heavy manufacturing) that largely depend on mining for intermediate inputs.
    Keywords: structural transformation, intersectoral linkages, propagation of productivity shock, subnational areas, mining, Ghana
    JEL: D24 F15 F43 N10 O11 O14 O47 D57 E32 L14 Q54
    Date: 2022–07
  7. By: Malan, Mandy; Berkhout, Ezra; Duchoslav, Jan; Voors, Maarten; van der Esch, Stefan
    Abstract: At the onset of the United Nations' decade of ecosystem restoration, lessons from well-designed impact evaluations on land restoration programs are crucial for improving policymaking. This study presents findings from a systematic review of research on the socioeconomic impact of such interventions, namely within agroforestry, conservation agriculture, integrated soil fertility management and soil and water conservation. We focus on identifying rigorous impact assessments, and after careful methodological assessment select only 29 relevant publications. We identify three key knowledge gaps. First, we retained no studies on agroforestry, suggesting a need for impact evaluations in this domain. Second, most studies look solely at farm-level outcomes instead of socioeconomic outcomes. Third, two-thirds of studies report positive on farm- or socioeconomic outcomes, but impact does not appear ubiquitous and may emerge under certain circumstances only. Overall, we conclude that there is a lack of well-designed impact assessments in this field. Promises on land restoration leading to improvements in the socioeconomic situation of households cannot yet be backed up by existing studies and it remains unclear which interventions work under which conditions.
    Keywords: Land restoration,systematic review,impact evaluation,rural development
    JEL: O13 O33 Q15 Q24 Q32
    Date: 2022
  8. By: Jean C. Kouam (Yaoundé, Cameroon); Simplice A. Asongu (Yaoundé, Cameroon); Bin J. Meh (Yaoundé, Cameroon); Robert Nantchouang (Yaoundé, Cameroon); Fri L. Asanga (Yaoundé, Cameroon); Denis Foretia (Yaoundé, Cameroon)
    Abstract: Access to finance is perceived as one of the major problems facing businesses in Sub-Saharan Africa, as well as the structures that support them in their development. This paper aims to measure the probability that a support structure with given characteristics, specific services to entrepreneurs and some technical capacities will face large-scale financial problems. We estimate a multinomial logistic model using a pool of disaggregated data collected by the Nkafu Policy Institute in a survey of 79 business support structures in Burkina Faso, Cameroon and Ghana in 2021. Our results show that the financial health of a business support structure is not fundamentally dependent on the duration of support, but rather on other factors related to the quality of services offered to entrepreneurs.
    Keywords: Duration of support; Financial Health of Businesses; Sub-Saharan Africa, Multinomial logit model
    JEL: C13 C25 M20 O10 O30 O55
    Date: 2022–01
  9. By: García-Ramos, Aixa
    Abstract: Mexico has experienced a dramatic increase in violence during the last decade. This increase has been associated with turf wars among Drug Trafficking Organisations (DTOs) for the control of strategic territories. This paper examines whether these territorial disputes are higher during the lame duck period, when incumbent DTOs might be relatively weaker. Using homicides as a proxy for turf wars, my results show support for this hypothesis. The increase in homicides is concentrated on municipalities in which the PRI wins the election. In contrast, those in which the PAN wins experience a decrease.
    Keywords: Organised crime,violence,elections
    JEL: D72 K42
    Date: 2022
  10. By: Achinthya Koswatta
    Abstract: Studies show that when exports go up, innovation goes up as well. But what is the mediating effect of domestic institutions in the association between exports and innovation? If any, which institutions are more likely to improve exports and innovation in developing countries, and how? To address this lacuna, this study employs estimations of industry fixed effects for 22 two-digit manufacturing industries in the period from 1996 to 2018. The first estimation includes 57 developing countries, and the second estimation excludes extreme outliers or unusual countries from the sample.
    Keywords: Innovation, Mediation analysis, Institutions, Fixed effects, Manufacturing industries, Exports
    Date: 2022
  11. By: Caldarola, Bernardo.; Grazzi, Marco.; Occelli, Martina.; Sanfilippo, Marco.
    Abstract: This paper examines the relationship between mobile internet, employment and structural transformation in Rwanda. Thanks to its ability to enable access to a wide range of ICT technologies, internet coverage has the potential to affect the dynamics and the composition of employment significantly. To demonstrate this, we have combined GSMA network coverage maps with individual-level information from national population censuses and labour force surveys, creating a district-level dataset of Rwanda that covers the period 2002 to 2019. Our results show that an increase in mobile internet coverage affects the labour market in two ways. First, by increasing employment opportunities. Second, by contributing to changes in the composition of the labour market. Education, migration and shifts in demand are all instrumental in explaining our findings.
    Keywords: Internet, technological change, employment, labour force survey, electronic network, labour market analysis, case study
    Date: 2022
  12. By: Peihua Deng; Ronnie Schöb
    Abstract: Using survey data from the China Family Panel Studies (CFPS) from 2010 to 2018, this paper analyzes the relationship between income inequality, group-specific income redistribution, and subjective well-being among China’s urban, rural, and migrant populations. Using narrowly defined reference groups, our findings suggest that within-group inequality does not significantly impact Chinese people. By contrast, a larger income gap between urban and rural residents is positively correlated with the rural residents’ subjective well-being, which we interpret as a tunnel effect, i.e. a positive signal concerning their own future income. Compared to migrants, however, our results hint at a negative status effect for the rural residents. More importantly, the group-specific redistribution inherent in the Hukou system that widens the income gap between urban and rural residents makes rural residents worse off. The existing Hukou system thus fails to lend support to the ‘harmonious society’ development strategy of the Chinese government.
    Keywords: income inequality, income redistribution, subjective well-being
    JEL: D31 D63 I31
    Date: 2022
  13. By: Kate R. Schneider; Luc Christiaensen; Patrick Webb; William A. Masters
    Abstract: The cost and affordability of least-cost healthy diets by time and place are increasingly used as a proxy for access to nutrient-adequate diets. Recent work has focused on the nutrient requirements of individuals, although most food and anti-poverty programs target whole households. This raises the question of how the cost of a nutrient-adequate diet can be measured for an entire household. This study identifies upper and lower bounds on the feasibility, cost, and affordability of meeting all household members' nutrient requirements using 2013-2017 survey data from Malawi. Findings show only a minority of households can afford the nutrient-adequate diet at either bound, with 20% of households able to afford the (upper bound) shared diets and 38% the individualized (lower bound) diets. Individualized diets are more frequently feasible with locally available foods (90% vs. 60% of the time) and exhibit more moderate seasonal fluctuation. To meet all members' needs, a shared diet requires a more nutrient-dense combination of foods that is more costly and exhibits more seasonality in diet cost than any one food group or the individualized diets. The findings further help adjudicate the extent to which nutritional behavioral change programs versus broader agricultural and food policies can be relied upon to improve individual access to healthy diets.
    Date: 2022–07
  14. By: Karla Hernández; Carlos Madeira
    Abstract: We study the impact of some weather variables (precipitation and temperatures) on GDP by using a region-industry panel data for Chile over the period 1985-2017. We find no effect of precipitation changes on GDP, but the results confirm a negative impact of higher summer temperatures on Agriculture-Silviculture and Fishing. An increase of one Celsius degree in January implies a 3% and 12% GDP reduction in Agriculture and Fishing, respectively, plus a negative effect on Construction, Electricity, Gas, and Water. Substantial uncertainty can be argued around these results due to the unavailability of region-industry GDP at a quarterly or monthly frequency and the assumption of fixed-coefficients over time. Stress test exercises for 2050 and 2100 that use all the industry coefficients estimated from our model or from an USA model imply a small effect of climate change on the overall Chilean GDP relative to a scenario without further climate change. However, these results should be taken with caution due to the overall fitness of the model. Indeed, under some parameter settings of the model, our stress test implies that the Chilean GDP would fall between -14.8% and -9% in 2050 and between -29.6% and -16.8% in 2100 relative to a scenario without further climate change. t further climate change. We also review several studies for the future impact of climate change during the 21st century. Some studies suggest that Chile is likely to suffer mild effects in terms of GDP growth, labor productivity and mortality costs. However, the studies of Kahn et al. (2019), Kalkuhl and Wenz (2020) and Swiss Re (2021) predict that Chile may suffer significant GDP costs due to the adaptation difficulties in a warmer weather. Furthermore, several studies find that Chile is facing non-GDP related problems from climate change, such as air pollution, drought, water stress, migration and changes in land classification.
    Date: 2021–12

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