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SAGA PUBLICATIONS

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Dampare, George A.

Financial Development, Political Institutions and Economic Growth in the ECOWAS Sub-Region: An Empirical Analysis
July 2004
George A. Dampare and Jennifer Piesse
The enormous cross-country differences in economic development and growth in recent years, have led to a resurgence of research interest in the determinants of economic growth, a subject which has been extensively debated. The resultant literature contains competing explanations of economic development and growth and the notable ones are the roles of institutions (Easterly and Levine, 2003; and Rodrik et al 2002), importance of geography, culture and history (Acemoglu et al. 2001) and quality of macroeconomic policies (Frankel and Romer, 1999; Aryeetey and Fosu, 2002; and Berg and Krueger, 2003). A common characteristic of the series of research papers that have examined this issue is that they relate to a combination of developed and developing countries. Interestingly, the results have been very persuasive, but not conclusive and this characterizes the issue as one of continuous research importance.
Presented at the ISSER-University of Ghana-Cornell University International Conference on "Ghana at the Half Century," July 18-20, 2004, Accra, Ghana

Danielson, Anders

Economic Growth without Poverty Reduction: Identifying the Missing Links in Tanzania during Economic Reform
October 2004
Anders Danielson
Studying the relation between economic growth and income poverty reduction without taking changes in the distribution of income into consideration is like setting up Othello without Iago in the play. Without any further references to Shakespeare, this paper examines the relations between poverty levels, economic growth and changes in inequality in Tanzania during the 1990s. It offers four conclusions. First, the efficiency with which growth reduces poverty increases with a country’s income level, so low-income countries should combine growth promotion with redistribution; second, growth in Tanzania during the 1990s, has accelerated, but has also been concentrated in sectors to which the majority of the poor have few links; third, the efficiency with which income growth reduces poverty in Tanzania appears very sensitive to the pattern of growth; fourth, recent poverty reduction strategies do not appear to recognize this fact and rely apparently instead on a strategy in which growth increases tax revenue that can be used to alleviate poverty through an expansion of publicly supplied (social) services. The selected strategy appears particularly ill-chosen, both because of Tanzania’s historical tax collection record and because of the emerging consensus on the state as a facilitator, not a producer, in the development process.
Presented at the DPRU-TIPS-Cornell University Forum on "African Development and Poverty Reduction: The Macro-Micro Linkage," October 13-15, 2004, Cape Town, South Africa

Demombynes, Gabriel

Crime and Local Inequality in South Africa
October 2005
Demombynes, Gabriel and Berk Özler
We examine the effects of local inequality on property and violent crime in South Africa. The findings are consistent with economic theories relating local inequality to property crime and also with sociological theories that imply that inequality leads to crime in general. Burglary rates are 25-43% higher in police precincts that are the wealthiest among their neighbors, suggesting that criminals travel to neighborhoods where the expected returns from burglary are highest. Finally, while we find little evidence that inequality between racial groups fosters interpersonal conflict at the local level, racial heterogeneity itself is highly correlated with crime.
In Poverty and Policy in Post Apartheid South Africa, edited by Haroon Bhorat and Ravi Kanbur. Cape Town, South Africa: HSRC Press, 2006.

De Grauwe, A.

Improving Schools in a Context of Decentralization: Findings from Research in West Africa – Benin, Guinea, Mali and Senegal
November 2005
De Grauwe, A. and C. Lugaz (IIEP); D. Odushina and M. Moustapha (Bénin) ; D. Baldé (Guinée) ; D. Dougnon (Mali); and C. Diakhaté (Sénégal)
Discussions on decentralization have increased in complexity in recent years because of the deepened realization that the ‘school’ as an institutional unit is a core actor in ensuring educational quality. A growing number of studies demonstrate that the management of a school, the relationships between the different actors (the head teacher, the teachers and the community) and the school’s own involvement in defining and evaluating its improvement have a profound impact on the quality of education. This ‘autonomization’ of the school in combination with the more traditional forms of decentralization, has led to greater diversity in the policies implemented in different countries.
Paper prepared for the Regional Conference on “Education in West Africa: Constraints and Opportunities” in Dakar, Senegal, November 1-2, 2005

Desta, Solomon

Women’s Groups in Arid Northern Kenya: Origins, Governance, and Roles in Poverty Reduction
June 2006
Coppock, D. Layne, Solomon Desta, Adan Wako, Ibrahim Aden, Getachew Gebru, Seyoum Tezera, and Chachu Tadecha
Collective action can be effective means of local development and risk reduction among rural people, but few examples have been documented in pastoral rangeland areas. We conducted extensive qualitative interviews for 16 women’s groups residing in settlements in northern Kenya during early 2005. Our objectives were to understand how groups were formed and governed and what activities they have pursued. Other questions included to what extent such groups can mitigate drought crises and reduce poverty for their members, and what most threatens group sustainability. At the time of interviews, our groups had existed for an average of 10 years, with two being 18-19 years old. Charter memberships averaged about 24 women, 20 of whom were typically illiterate. Half of the groups had been formed after facilitation by a GO or NGO partner and half formed spontaneously. Groups are governed under detailed constitutional frameworks outlining rights and responsibilities of members. All groups have eventually been registered with the Kenya government. Chairladies of the groups are typically elected to two-year terms. Group applicants and candidates for office are carefully screened. Groups primarily form to improve living standards of the members. Groups undertake a wide variety of social and economic activities founded on savings and credit schemes, income diversification, small business development, and expansion of education, health service, and natural resource management functions. The livestock and non-livestock economies become intermixed—commercialized livestock activities provide capital for small business ventures as well as the reverse. Groups have taken an active role in mitigating drought impacts on their members and the scope of drought mitigation appears to expand as groups mature over time. Interview respondents gave many examples of group members that have lifted themselves up from destitution. Relatively few of the groups we interviewed have experienced abject failure, but many have struggled. The greatest threats to the sustainability of these women’s groups come from external factors such as drought, resource scarcity, poverty, and political incitement as well as internal factors such as unfavorable group dynamics and illiteracy. Principles of good group governance and wisdom in business creation and management were repeatedly stated by respondents as the key ingredients for long-term success; making linkages to external development partners is also vital to secure access to technology and small grants. Groups have ambitious plans to further improve their social and economic circumstances; evidence is shown that rates of group formation in the region appear to be increasing. In a highly risky and poverty-stricken environment such as northern Kenya, such groups help create relatively deep pools of social, human, and diversified economic capital. Many of these processes fill large gaps in public service delivery and should be encouraged by policy makers. At the micro-level groups and their GO and NGO facilitators need continued support to strengthen groups. At a macro-level, investments that lead to broader economic development and greater access to formal education in the rangelands may permit further proliferation of sustainable efforts towards collective action.
Presented at the Policy Research Conference on “Pastoralism and Poverty Reduction in East Africa,” held in Nairobi, Kenya, June 27-28, 2006.

de Wet, Albert

How responsive is capital formation to its user cost? An exploration of corporate tax effects
October 2004
Stephen F. Koch and Albert de Wet
The responsiveness of business investment spending to price changes is central in economic analysis. Despite the key role played by the user cost of capital in economic analysis, there is less supporting evidence for the existence of a substantial user cost elasticity. This study investigates the empirical user cost of capital with specific focus on the contribution that corporate taxes has on the price elasticity of investment in the South African economy. Making use of a disaggregated data set of corporate tax revenues we are able to get better understanding of how firms perceive their tax burden. Using vector auto regression and cointegration techniques we estimate the long run user cost elasticity to be –0.18%. Average total elasticity of companies with respect to effective corporate taxes is estimated at 0.09% implying that taxes plays a very important role in the price determination of capital. We have also shown that additional taxes placed on companies like secondary taxes, are perceived in a different light than normal profit taxes inducing more and bigger changes investment behaviour.
Presented at the DPRU-TIPS-Cornell University Forum on "African Development and Poverty Reduction: The Macro-Micro Linkage," October 13-15, 2004, Cape Town, South Africa

Dia, Abdoul Alpha

L’impact des niveaux de qualification de la main d’oeuvre sur la productivité des enterprises: analyse appliquée au secteur industriel sénégalais
November 2005
Dia, Abdoul Alpha
Sur la question des effets du capital humain, les études consacrées aux pays africains sont relativement rares, et en grande majorité, il s’agit d’ailleurs soit d’analyses macroéconomiques, soit d’études consacrées au secteur agricole. Dans le cadre de cette étude, nous nous proposons d’analyser l’impact des niveaux de qualification de la main d’oeuvre industrielle sur les performances productives des entreprises. Plus particulièrement, quatre catégories de main d’oeuvre sont ici prises en compte : (i) les cadres, (ii) les techniciens supérieurs, (iii) les techniciens et agents de maîtrise, et enfin (iv) les employés ouvriers et manoeuvres. Les résultats obtenus ici n’indiquent globalement pas un impact considérable de la structure des qualifications (et plus particulièrement des catégories de main d’oeuvre les plus qualifiées) sur les performances productives, et ce quelle que soit la spécification retenue (Cobb-Douglas ou Translog). Assurément, il s’agit ici d’un résultat très largement contre-intuitif, qui s’oppose autant aux postulats de la théorie économique qu’aux résultats de la recherche internationale consacrée à cette question (cf. plus particulièrement les études conduites en France, aux Etats Unis ou en Grande Bretagne). En ce qui concerne les facteurs en mesure d’expliquer un tel résultat, ils sont de plusieurs ordres : la faible qualité des formations dispensées (et donc la forte inadéquation formation/emploi), le poids très minime de la main d’oeuvre qualifiée au sein des entreprises (on serait donc en présence d’un effet de seuil), la répartition très inégale de la main d’oeuvre industrielle (et plus particulièrement l’hypertrophie des services administratifs au détriment des services “productifs”), et enfin les caractéristiques structurelles du secteur industriel sénégalais (cf. notamment le faible niveau de progrès technique caractérisant la plupart des entreprises, lequel aurait donc globalement tendance à limiter le potentiel productif du capital humain).
Paper prepared for the Regional Conference on “Education in West Africa: Constraints and Opportunities” in Dakar, Senegal, November 1-2, 2005

Diakhaté Cheikh

Djongoue, Caroline Mongue

Access to Schooling and Employment in Cameroon: New Inequalities and Opportunities
April 2004
Eloundou-Enyegue, Parfait M., Ngoube Maurice, Okene Richard, V.P Onguene,Serge Bahoken, Joseph Tamukong, Moses Mbangwana, Joseph Essindi Evina, and Caroline Mongue Djongoue
This report is about recent trends in education and access to employment in Cameroon. It focuses on five questions about (1) current levels of schooling, (2) recent trends in enrolment, (3) recent trends in schooling inequalities, (4) access to employment, and (5) risks and opportunities to improve education and employment outcomes. Based on these analyses, the report discusses several challenges and opportunities in improving education and employment outcomes.

Djurfeldt, Göran

Food Security, Agricultural Technology and Policy - The Case of Maize in Sub-Saharan Africa
October 2004
Göran Djurfeldt and Rolf Larsson
This paper deals with the importance of agricultural policy and technology for farmers’ food security and market integration. We draw on data recently collected in interviews with over 3000 farmers in eight sub-Saharan African countries. The results indicate that the food production among African smallholders is highly responsive to increased use of industrial inputs and to marketing opportunities for food crops. In the absence of a favourable macro environment enhancing increased use of inputs, however, the majority of farmers remain stuck in poverty and are barely able to meet their own food needs. In the following we will use maize as an example to demonstrate the crucial role of the African state in providing the necessary macro conditions for realising the production potential inherent in increased technology adoption and increased commercialisation of staple production. This conclusion suggests that development options in African agriculture are different from those often surmised in the general development debate. Hence, we argue that policy makers in governments and among donors often work from assumptions that badly fit existing realities in African agriculture. We criticise a number of tendencies that recur in debates on agricultural development in sub-Saharan Africa. They are not internally consistent, and they seldom occur together, since they typically are associated with different types of actors.
Presented at the DPRU-TIPS-Cornell University Forum on "African Development and Poverty Reduction: The Macro-Micro Linkage," October 13-15, 2004, Cape Town, South Africa

Dorosh, Paul

Rice Price Stabilization in Madagascar: Price and Welfare Implications of Variable Tariffs
November 2005
Dorosh, Paul and Bart Minten
Given the large share of major staples in the budgets of the poor, governments in many developing countries intervene in food markets to limit variation in the prices of staple foods. This paper examines the recent experience of Madagascar in stabilizing prices through international trade and the implications of adjustments in tariff rates. Using a partial equilibrium model, we quantify the overall costs and benefits of a change in import duties for various household groups, and compare this intervention to a policy of targeted food transfers or security stocks.

Dorward, Andrew

pdfModelling pro-poor agricultural growth strategies in Malawi: lessons for policy and analysis
October 2004
Andrew Dorward and Jamie Morrison
This paper pulls together insights from related farm-household and CGE modelling for Malawi to suggest wider methodological and policy lessons for pro-poor policy analysis in poor agrarian economies. The farm-household and CGE models and the principal results are summarised, and their strengths and weaknesses discussed. The discussion demonstrates the potential benefits of greater integration between farm household and economy wide models, and suggests ways in which this should be achieved. A number of conclusions also emerge regarding policies promoting pro-poor economic growth.
Presented at the DPRU-TIPS-Cornell University Forum on "African Development and Poverty Reduction: The Macro-Micro Linkage," October 13-15, 2004, Cape Town, South Africa

Doss, Cheryl

Interpersonal, Intertemporal and Spatial Variation in Risk Perceptions: Evidence from East Africa
August 2008
Doss, Cheryl, John McPeak, and Barrett, Christopher B.
This study investigates variation over time, space and household and individual characteristics in how people perceive different risks. Using original data from the arid and semi-arid lands of east Africa, we explore which risks concern individuals and how they assess their relative level of concern about these identified risks. Because these assessments were gathered for multiple time periods, sites, households and individuals within households, we are able to identify the degree to which risk perceptions vary across time, across communities, across households within a community, and across individuals within a household. We find the primary determinants of risk rankings to be changing community level variables over time, with household specific and individual specific variables exhibiting much less influence. This suggests that community based planning and monitoring of development efforts that address risk exposure should be prioritized. We also find that individuals throughout this area are most concerned about food security overall, so that development efforts that directly address this problem should be given the highest priority.
In World Development 36(8): 1453-68 2008

Dougnon, D.

Drucker, Adam

Pastoralists Preferences for Cattle Traits: Letting Them Be Heard
June 2006
Ouma, Emily, Awudu Abdulai and Adam Drucker
This paper investigates preferences for cattle traits among a pastoral community in a trypanosomosis prevalent area in Kenya. Choice experiments and mixed logit models are employed to estimate economic values of preferred traits which could be introduced through systematic breeding in breed improvement programs that utilise trypanotolerance trait. The findings suggest preference for traits linked to drought tolerance, high live weight, trypanotolerance and fecundity. Identification and estimation of preferred traits provides useful information for breeding policy and provides a framework for promoting conservation of breeds that possess adaptability traits, critical for arid and semi-arid areas.
Presented at the Policy Research Conference on “Pastoralism and Poverty Reduction in East Africa,” held in Nairobi, Kenya, June 27-28, 2006.

Duclos, Jean-Yves

Robust Multidimensional Spatial Poverty Comparisons in Ghana, Madagascar, and Uganda
April 2006
Duclos, Jean-Yves, David E. Sahn, and Stephen D. Younger
We investigate spatial poverty comparisons in three African countries using multidimensional indicators of well-being. The work is analogous to the univariate stochastic dominance literature in that we seek poverty orderings that are robust to the choice of multidimensional poverty lines and indices. In addition, we wish to ensure that our comparisons are robust to aggregation procedures for multiple welfare variables. In contrast to earlier work, our methodology applies equally well to what can be defined as "union", "intersection," or "intermediate" approaches to dealing with multidimensional indicators of well-being. Further, unlike much of the stochastic dominance literature, we compute the sampling distributions of our poverty estimators in order to perform statistical tests of the difference in poverty measures. We apply our methods to two measures of well-being, the log of household expenditures per capita and children’s height-for-age z-scores, using data from the 1988 Ghana Living Standards Survey, the 1993 Enquête Permanente auprès des Ménages in Madagascar, and the 1999 National Household Survey in Uganda. Bivariate poverty comparisons are at odds with univariate comparisons in several interesting ways. Most importantly, we cannot always conclude that poverty is lower in urban areas from one region compared to rural areas in another, even though univariate comparisons based on household expenditures per capita almost always lead to that conclusion.
In World Bank Economic Review 20(1):91-113

Duff, Patrick

The dynamics of job search and the microfoundations of unemployment: Evidence from Duncan village
October 2004
Patrick Duff and David Fryer
There is significant consensus that unemployment and more generally, exclusion from the labour market, is the central socio-economic problem in South Africa. Joblessness is strongly implicated in such socio-economic problems as crime, poverty, alcoholism, HIVAIDS, and even poor educational outcomes and low skill levels (see for example Bhorat et al. 2001; Fryer and Vencatachellum, 2004; Nattrass, 2003). The literature flowing from household survey data has however tended to confine itself to measuring unemployment and its consequences. In doing this, it tends to treat unemployment as something that happens to individuals and communities. However, factors such as unemployment and poverty will have obvious feedback effects on the current capabilities of individuals, on the intergenerational transmission of capital (and especially human capital) and on social and market structure. Below critical threshold levels, such factors can generate market and coordination failures. The distortions generated by unemployment can become endogenized in the sense that they become part of the cause of unemployment. To date, there is no clear understanding in the South African literature as to whether such endogenous factors are important and how they interact with other factors such as so-called imposed distortions (caused, for example by labour legislation and union wage premia) and other macroeconomic causes of unemployment.
Presented at the DPRU-TIPS-Cornell University Forum on "African Development and Poverty Reduction: The Macro-Micro Linkage," October 13-15, 2004, Cape Town, South Africa

Dumas, Christelle

Progression through School and Academic Performance in Senegal: Descriptive Survey Results
July 2004
Dumas, Christelle, Peter Glick, Sylvie Lambert, David E. Sahn, and Leopold Sarr
This report provides a preliminary descriptive analysis of some of the data from The Progression through School and Academic Performance in Senegal Study, a joint research project of Cornell University, Centre de Recherche en Economie Appliquée (CREA), and INRA. This project is based around a nation-wide household survey with a special focus on schooling, complimented by academic and life skills tests and additional surveys of local schools and communities. The topics covered in this report focus on the household survey and test score data and include: enrollment rates; school attainment; grade repetition; dropouts and progression to secondary school; academic and life skills test scores; and perceptions about education and schooling.

Duret, Elsa

La dimension économique de l’efficacité externe de l’éducation en Afrique de l’Ouest
November 2005
Duret, Elsa, Mathias Kuepie, Christophe Nordman, and François Roubaud
Les analyses ciblant l’efficacité externe1 des systèmes éducatifs s’intéressent à l’influence de l’éducation reçue par les individus après qu’ils sont sortis des écoles et établissements de formation pour mener à bien leur vie d’adulte au sein de la société. Ces effets sont de deux ordres, économiques dans un sens étroit, sociaux dans une conception plus large, et peuvent être lus à travers deux dimensions complémentaires : individuelle d’une part, collective d’autre part. Le croisement de ces deux perspectives offre un tableau synthétique des différentes analyses qui peuvent être conduites dans ce domaine...
Paper prepared for the Regional Conference on “Education in West Africa: Constraints and Opportunities” in Dakar, Senegal, November 1-2, 2005

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