Ana Balcão Reis

On the welfare effects of foreign investment

Abstract Modern growth theory emphasizes endogenous technological change as the engine of growth. A policy implication for developing countries that has been drawn from this theory is that foreign direct investment increases growth. However, welfare assessments must recognize that investment returns may be repatriated. In this paper we show that foreign investment may decrease national welfare due to the transfer of capital returns to foreigners. Taking into account all the relevant effects, we show that welfare does not change monotonously with FDI and we characterize the conditions that imply a positive or a negative welfare effect of foreign investment.

Association of enteric parasitic infections with intestinal inflammation and permeability in asymptomatic infants of São Tomé Island

Abstract The cumulative effect of repeated asymptomatic enteric infections on intestinal barrier is not fully understood in infants. We aimed to evaluate the association between previous enteric parasitic infections and intestinal inflammation and permeability at 24-months of age, in asymptomatic infants of São Tomé Island. A subset of infants from a birth cohort, with intestinal parasite evaluations in at least four points of assessment, was eligible. Intestinal inflammatory response and permeability were assessed using fecal S100A12 and alpha-1-antitrypsin (A1AT), respectively. The cutoff <–1SD for weight-for-length and length-for-age was used to define wasting and stunting. Multivariable linear regression analysis explored if cumulative enteric parasitic infections explained variability of fecal biomarkers, after adjusting for potential confounders. Eighty infants were included. Giardia duodenalis and soil-transmitted helminths (STH) were the most frequent parasites. The median (interquartile range) levels were 2.87 μg/g (2.41–3.92) for S100A12 and 165.1 μg/g (66.0–275.6) for A1AT. Weak evidence of association was found between S100A12 levels and G. duodenalis (p = 0.080) and STH infections (p = 0.089), and between A1AT levels and parasitic infection of any etiology (p = 0.089), at 24-months of age. Significant associations between A1AT levels and wasting (p = 0.006) and stunting (p = 0.044) were found. Previous parasitic infections were not associated with fecal biomarkers at 24 months of age. To summarize, previous asymptomatic parasitic infections showed no association with intestinal barrier dysfunction. Notwithstanding, a tendency toward increased levels of the inflammatory biomarker was observed for current G. duodenalis and STH infections, and increased levels of the permeability biomarker were significantly associated with stunting and wasting.

Is retention beneficial to low-achieving students? Evidence from Portugal

ABSTRACT The role of retention as an educational tool to overcome under-achievement is a hotly debated issue, especially given that the results in the literature are not consensual. The Portuguese case is particularly well suited to study this issue: all students must take standardized national exams at specific grades. Moreover, the available dataset tracks the performance of students over time. Therefore, we are able to measure the impact of students’ retention on their subsequent academic performance since we can control for each student’s initial level of ability at the moment of retention. We use a propensity score matching approach, in which retained and promoted 4th grade students are matched according to their socioeconomic characteristics and the scores obtained in national exams. To address potentially remaining endogeneity biases, we also use the culture of retention at school level as an instrumental variable. The results suggest that in some situations retentions may have on average a positive impact on future achievement. However, in the cases where statistically significant impacts are found, the estimated magnitudes are relatively small. Our results are relevant for countries with high retention rates that are considering alternative educational policies to promote students’ achievement.