John Rand

On the Causal Links between FDI and Growth in Developing Countries

We analyse the Granger causal relationships between foreign direct investment (FDI) and GDP in a sample of 31 developing countries covering 31 years. Using estimators for heterogeneous panel data we find bi-directional causality between the FDI-to-GDP ratio and the level of GDP. FDI has a lasting impact on GDP, while GDP has no long-run impact on the FDI-to-GDP ratio. In that sense FDI causes growth. Furthermore, in a model for GDP and FDI as a fraction of gross capital formation (GCF) we also find long-run effects from FDI to GDP. This finding may be interpreted as evidence in favour of the hypotheses that FDI has an impact on GDP via knowledge transfers and adoption of new technology.

Does Gender Influence the Provision of Fringe Benefits? Evidence from Vietnamese SMEs

Abstract This contribution studies the provision of fringe benefits using a unique survey of small and medium-sized enterprises (SMEs) in Vietnam. Analysis of the survey reveals that women who own SMEs are more likely than men who own similar firms to provide employees with fringe benefits such as annual leave, social benefits, and health insurance. This gender effect exists especially with regard to mandatory social insurance and is robust to the inclusion of standard determinants of wage compensation. The study also explores whether this finding is linked to gender differences in social networks and workforce structure, worker recruitment mechanisms, and the degree of unionization. However, these factors cannot fully account for the observed differences in fringe benefits along the “gender of owner” dimension. There remains a sizable and unexplained fringe benefits premium paid to employees in women-owned firms.

The Myth of Female Credit Discrimination in African Manufacturing

Abstract We examine credit constraint differentials between male and female manufacturing entrepreneurs using firm data from 16 sub-Saharan Africa countries. Small enterprises owned by female entrepreneurs are less likely to be credit constrained compared to their male counterparts, while this is reversed for medium-sized enterprises. A generalised Oaxaca–Blinder decomposition shows that the gap is predominantly a pure gender effect. We argue that this finding is mainly due to female favouritism in loans to micro and small firms because the gap is reversed for medium-sized enterprises and because we find no sign of superior female entrepreneurial performance in observable indicators.

Evaluating the employment-generating impact of rural roads in Nicaragua

This paper analyses the employment-generating impact of a tertiary road project in Nicaragua, applying a matched double-difference approach to control for initial conditions and time variant factors that simultaneously influence the placement of roads and subsequent employment growth rates. Results are promising. The authors estimates indicate an increase in hours worked per week attributable to the intervention of around 9.5–12.3 hours. Moreover, he observes tendencies of a graduation process taking place in the labour market: individuals moving out of unemployment predominately achieve employment in the agricultural sector (self-employment), whereas newly created service sector jobs primarily are taken by workers previously working in agriculture. Finally, the analysis suggests that the employment-generating effect comes through a combination of reduced travel time and better access to markets and larger, more integrated road networks.

Economic structure and development in an emergent Asian economy: evidence from a social accounting matrix for vietnam

Vietnam started a wide-ranging process of economic reform in 1986 and is presently opening up its economy to regional and global economic forces. As a result, Vietnam faces significant challenges in the area of economic policy analysis in spite of a remarkable growth performance in recent years. This paper reviews insights emerging from a detailed social accounting matrix (SAM), compiled for the year 2000. The SAM reflects Vietnam’s heavy reliance on primary sector activities, but we also find that agricultural potential could be expanded significantly. In other sectors, the critical importance of sustained commitments to human capital development is apparent. In this context, the international donor community can support the ongoing transformation process through concerted training and capacity building initiatives that have proven successful elsewhere in the region.

From Monobank to Commercial Banking : Financial Sector Reforms in Vietnam

1. Introduction 2. Executive Summary 3. Central Planning and the First Phase of Reforms 4. The East Asian Financial Crisis and its Aftermath, 1997-2003 5. A Regional Comparison of Bank Supervision and Regulation 6. The State Bank of Vietnam 7. Financial Services to the Agricultural Sector 8. Conclusion Appendix A. The State Owned Commercial Banks Appendix B. Important Events 1988-2003 Appendix C: Bank Supervision and Regulation Indicators References Index

Network ties and survival: A study of small commercial poultry farms in Ghana

Poultry farming has been touted as one of the major ways by which poverty can be reduced in low-income economies like Ghana. Yet, anecdotally there is a high failure rate among these poultry farms. This current study seeks to understand the relationship between network ties and survival chances of small commercial poultry farms (SCPFs). We utilize data from a 2-year network survey of SCPFs in rural Ghana. The survival of these poultry farms are modelled using a lagged probit model of farms that persisted from 2014 into 2015. We find that network ties are important to the survival chances of the SCPFs in Ghana. Distribution ties are associated with negative survival chances and this is not even reversed if the human capital of the owner increases although managers with higher human capital and higher distribution ties experience positive effects. Industry ties are associated with positive ties but this probability reduces as the number of industry ties increases but moderation with dynamic capability of the firm reverses this trend. Our findings show that not all network ties aid survival and therefore small commercial poultry farmers need to be circumspect in the network ties they cultivate and develop.

Branding and outcomes in small and medium-sized enterprises (SMEs): a resource–capability approach

The study investigates the relationships of enterprise resources and branding capabilities with branding efforts and branding benefits. It examines the differential effect of physical resources and branding capabilities on enterprises’ branding efforts and outcomes. Empirical data for the study were drawn from 304 small and medium-sized enterprises (SMEs) in Ghana. The hypothesized relationships were analyzed using Structural Equation Modeling. The study found that resources and capabilities possessions might not be enough to produce the optimum branding benefits for enterprises. A better result, however, emerges when these resources and capabilities are integrated with well-coordinated branding efforts of the enterprises. The study offers several implications for managers of small businesses based on the findings of the study.

Early life malaria exposure and academic performance

Malaria is a major cause of morbidity and mortality in sub-Saharan Africa. It is also a dynamic contributor to poverty through its effects on children’s cognitive development. This paper examines the degree to which malaria in early childhood impacts on educational achievement in later childhood. The substantial decline in malaria in the region over recent years allows an assessment of its impact to be made. Focusing on Tanzania, we combine data from the Malaria Atlas Project and the 2010–2014 Uwezo household surveys (N = 246,325). We relate the district-level risk of malaria in a child’s year of birth to his/her performance in tests of acquired cognitive skills (literacy and numeracy). For causal identification, we rely on differences across districts in the pace of decline in malaria prevalence occurring over the last 15 years. We control for time-invariant district level, age, birth cohort and survey year effects, as well as district-level trends and individual and household-specific factors. In addition, we use sibling variation in birth-year exposure to malaria to strengthen our identification. A ten percentage-point decrease in malaria prevalence in birth year is associated with a 0.06 standard deviation (p = 0.000) increase in English literacy achievement. This estimate is comparable in magnitude to education intervention programs with very large effects. Our results are robust to a large number of sensitivity analyses. We find no statistically significant effects of birth-year malaria exposure on attainments in numeracy and Kiswahili, and we argue that this is probably attributable to strong ceiling effects in these test scores. We conclude that in Tanzania malaria is an important factor in geographical variation in English literacy. This indicates that malaria is a significant public health challenge to educational achievement in this country, and probably in other regions with malaria.