Do African Manufacturing Firms Learn from Exporting?

We use firm-level panel data for the manufacturing sector in four African countries to investigate whether exporting impacts on efficiency, and whether efficient firms self-select into the export market. Based on simultaneous estimation of a production function and an export regression, our preferred results indicate significant efficiency gains from exporting, which can be interpreted as learning by exporting. We show that modelling unobserved heterogeneity by a flexible approach is important for deriving this conclusion. A policy implication of our results is that Africa would gain from orientating its manufacturing sector towards exporting.     

Can Information about Local Government Performance Induce Civic Participation? Evidence from the Philippines

The question of whether people are motivated to engage in civic activities once informed of their local government's performance is relevant to many developing countries that adopted decentralisation. Applying propensity score matching technique on a unique household-level dataset from the Philippines, it is found that the knowledge of an index of local government performance has positive and statistically significant effects on the likelihood of membership in local organisations and participation in local projects. Thus, the results support policies for greater transparency in local governance to deepen citizenship.     

Does Education Improve Health? Evidence from Indonesia

I examine the effects of education on health in Indonesia using an exogenous variation in education induced by an extension of Indonesia’s school term length in 1978–1979, a natural experiment that fits a regression discontinuity design. I find the longer school year increases educational attainment and wages, but I do not find evidence that education improves health. I explore some mechanisms through which education may affect health, but education does not seem to promote healthy lifestyles, increase the use of modern healthcare services, or improve access to health insurance; if anything, education improves only cognitive capacity.     

Inverse Productivity or Inverse Efficiency? Evidence from Mexico

Using a unique panel data set from rural Mexico, we find strong evidence of a negative relationship between farm size and both productivity and technical efficiency: large farms not only have a lower value of output per hectare than small farms, they also produce further from the efficiency frontier. Our findings suggest that, in spite of the ongoing transformation of agricultural supply chains and economists’ recommendations for small farmers to exit crop production, there may be sustained advantages for smallholder farms. Our analysis offers new insights into inverse-farm size relationship, the productivity–efficiency relationship, and the use of stochastic frontier techniques.     

Economic transformation through political change? Evidence from Turkey

Turkey recently initiated a political change by replacing its parliamentary model with the presidential governmental system (PGS) to achieve, inter alia, a structural transformation from an efficiency-driven to an innovation-driven model of growth. To investigate the PGS’s potential for mediating such a change, this paper uses four key concepts of institutionalist analysis: systemic governance, credible commitment, institutional fragmentation and institutional traps. In doing so, the paper concludes that the PGS’s potential to unleash a structural transformation towards an innovation-driven and high growth depends on the prospect of its mediating an imperative commitment in political and economic governance. This prospect proves to be weak due to both the PGS’s institutional pillars and the path-dependent dynamics of the country’s trap in efficiency-driven growth that have become embedded under a parliamentary model.     

Actions and Reactions of Russian Manufacturing Companies to the Crisis Shocks from 2008–2009: Evidence from the Empirical Survey

This essay explores the nature of the 2008 crisis and the channels through which it affected the performance of firms in Russia. Based on the findings of a manufacturing industry survey, the evidence suggests that all manufacturing firms were affected by the crisis and that there is no single and dominant transmission channel. Crisis reactions were significantly related to participation in international markets, although participation in trade, in external borrowing or FDI cannot explain recession by themselves. The reversal of growth was mainly caused by demand shock and, following that, by financial constraints. Thus the hypothesis that blames overheating of internal demand in the years prior to the crisis seems to receive statistical backing. Globalised companies, though hit by external shocks, were better prepared to pay the cost and balance the consequences of the crisis.     

Gender Discrimination in Microfinance? Some Evidence from Uganda

Abstract

Microfinance literature has proved the existence of gender discriminatory practices against women in some specific contexts. Discrimination is often explored from the access side (loans approved or denied). Following Agier and Szafarz (2013), we deviate from this practice and use the variable loan size, considering up to four loans for each client. Drawing on data from a microfinance programme in Uganda, we find no evidence of gender discrimination against women clients, even though our results show that the loan size is influenced by personal characteristics and that women, in contrast to men, are rewarded according to their credit history.     

Do Labour Parties Suffer from Declining Turnout? Evidence from Norwegian Local Elections

The argument that declining voter turnout harms social democratic parties has received little support in research on national elections, but partisan consequences of declining turnout in local elections has been less explored. Norwegian local elections – where both turnout and support for the Labour Party have declined since the early 1960s – are used as a test case. Analyses of aggregate data gave no systematic support for the hypothesis that Labour suffers from lower turnout. Declining turnout and declining Labour Party vote were not causally related, and the correlation between the two variables seemed to be the result of other long-term social changes. Analyses of survey data pointed to three flaws in the premises on which the hypothesis was based. First, the effect of declining turnout on the biased class composition of the abstainers was ambiguous. Second, the Norwegian Labour Party suffers less from differential turnout than before as a result of declining class voting. Third, the Labour Party may suffer from a demobilisation of the working class, but the party may also benefit from a demobilisation of the young.     

Can a developing democracy benefit from labour repression? Evidence from Sri Lanka

While a growing body of academic literature casts doubt on the wisdom of authoritarian responses to labour in developing democracies, few empirical studies demonstrate the adverse effects of excluding organised labour from the policy arena or repressing trade unions in the industrial relations arena. This paper draws on the recent history of state–labour relations in Sri Lanka to help fill this gap. Beginning in the late 1970s, the Sri Lankan government adopted a labour-repressive export-oriented strategy of development. The author shows how the repression of private sector unions during this period destroyed the legitimacy of traditional left unions and the structure of institutionalised bargaining that was in place prior to Sri Lanka's authoritarian period. This erosion of the system of institutionalised bargaining eventually led workers to shift their support to more radical, ‘new left’ unions and culminated in a wave of extreme and violent forms of protest that chased away much needed foreign direct investment. The chaotic consequences of the labour repression suggest two primary conclusions: (a) that prior democratic mobilisation may make labour repression untenable over the long term; and (b) that repression may backfire, creating bursts of highly visible and destabilising protest that undermine the developmental objectives of neoliberal reforms.     

Who votes for mayor? Evidence from midsized American cities

Who, or what, governs the mosaic of the almost 39,000 general purpose local governments across the United States? While the determinants of voter turnout in both national and sub-national elections have been well studied, there is a dearth of empirical literature examining voter turnout at the municipal level. Utilizing an original dataset of 356 midsized US cities drawn from the Midwest, South, and Northeast regions, this paper ponders the drivers of mayoral turnout, and asks if electoral timing, competitiveness, or characteristics of the electorate best predict turnout. Sequenced hierarchical linear models and OLS regressions are employed to control for sub-national effects, and model results indicate that election timing greatly dictate who governs midsized American cities. While local competitiveness and characteristics of the electorate also matter, their explanatory value is greatly over-shadowed by timing.     

Is Corruption Really Bad for Inequality? Evidence from Latin America

This article presents new evidence on the relationship between corruption and income inequality. Using a panel data methodology, we find that lower corruption is associated with higher income inequality in Latin America. This result is in contrast to other empirical studies but it makes sense in Latin America for a number of reasons. The finding of an inverse relationship between inequality and corruption suggests that institutional reform policies by themselves may be misguided.     

Does Land Fragmentation Increase the Cost of Cultivation? Evidence from India

To appreciate overall impacts of fragmentation, underlying channels, and potential heterogeneity by holding size, we distinguish average fragment size and mean inter-fragment distance as two aspects of this phenomenon. Estimating a cost function with associated input demand equations on a large nationally representative Indian survey, robust to endogeneity, suggests that fragmentation’s main impact is to reduce mean plot size below the threshold for mechanisation. Higher inter-fragment distances increase costs for larger holdings, but by a much smaller magnitude. Implications as to when programmes to consolidate holdings may make sense and ways to ensure their sustainability are discussed.     

Will REDD+ Safeguards Mitigate Corruption? Qualitative Evidence from Southeast Asia

High levels of faith and finance are being invested in REDD+ as a promising global climate change mitigation policy. Since its inception in 2007, corruption has been viewed as a potential impediment to the achievement of REDD+ goals, partly motivating ‘safeguards’ rolled out as part of national REDD+ readiness activities. We compare corruption mitigation measures adopted as part of REDD+ safeguards, drawing on qualitative case evidence from three Southeast Asian countries that have recently piloted the scheme: Indonesia, the Philippines, and Vietnam. We find that while REDD+ safeguards adopt a conventional principal-agent approach to tackling corruption in the schemes, our case evidence confirms our theoretical expectation that REDD+ corruption risks are perceived to arise not only from principal-agent type problems: they are also linked to embedded pro-corruption social norms. This implies that REDD+ safeguards are likely to be at best partially effective against corruption, and at worst will not mitigate corruption at all.     

Do Formulas Reduce Political Influence on Intergovernmental Grants? Evidence from Tanzania

Sub-national governments usually depend on the central government for a large share of their revenues. Therefore, a fair allocation of intergovernmental grants is essential for financing vital local services like education and healthcare. In Tanzania, and many other countries, regions that are better represented in the national parliament receive significantly more funds than others. Recently, Tanzania replaced the previously existing discretionary method of grant allocation by allocation formulas. We study whether this has reduced the effect of malapportionment on grant allocation. Surprisingly, we find that formula allocation does not significantly change this effect. This has important policy implications.     

Does democratic local governance facilitate local economic development? Evidence from Bangladesh

ABSTRACT

This paper tests whether the improvement of democratic local governance (DLG) positively impacts local economic development (LED). Based on a nationally representative citizen perception survey of 3,024 households across 56 Union Parishads (UPs) in Bangladesh, the results suggest that, although the UP governance program (UPGP) has improved the administrative governance of UPs, functional governance involving citizens remains weak. Thus, due to partial improvement of DLG, UPGP does not appear to have a significant impact on the overall local economic development and service delivery of UPs. A significant gap can be seen to exist between the claims of UPs and the perceptions of citizens around UPs’ governance performance, which may result from the poor awareness building structures of the UPGP. However, our results suggest that providing training to UP officials can partially offset the shortfalls of DLG in its pursuit of LED.     

Does transformational leadership stimulate user orientation? Evidence from a field experiment

While doing good for specific citizens and users is often considered a powerful motivator among public service employees, little research has rigorously evaluated how public managers can promote individualized prosocial motivation. We follow recent studies on the behavioural implications of ‘user orientation’ to explore how public managers can use a specific leadership strategy—transformational leadership—to reinforce employees' individualized prosocial motivation. Combining a field experiment with 80 childcare centre managers and survey reports from their 590 preschool teachers, we assess the effect of a transformational leadership training programme on user orientation. The results show a positive effect on user orientation three months after the training programme but no persistent effect 15 months after the intervention. This implies that, at least in the short term, public managers can use transformational leadership behaviours to stimulate user orientation.