Michael A. McPherson

Growth of micro and small enterprises in southern Africa

As policy-makers and members of the donor community have recognized the importance of micro and small enterprises in developing countries, the paucity of information regarding the ways in which MSEs grow and change over time has become glaring. This study examines one issue of small-firm dynamics, namely growth, using new data collected in five southern African countries. The level of human capital embodied in the proprietor, firm location, sector, and proprietor gender are found to be important determinants of growth. The results also indicate an inverse relationship between firm growth and both firm age and firm size.

Determinants of How Students Evaluate Teachers

Abstract: Convincingly establishing the determinants of student evaluation of teaching (SET) scores has been elusive, largely because of inadequate statistical methods and a paucity of data. The author uses a much larger time span than in any previous research—607 economics classes over 17 semesters. This permits a proper treatment of unobserved heterogeneity. Results indicate that instructors can buy higher SET scores by awarding higher grades. In principles classes, the level of experience of the instructor and the class size are found to be significant determinants of SET scores. In upper-division classes, the type of student and the response rate matter. In both types of classes, factors specific to courses, instructors, and time periods are important; adjustments of scores to remove these influences may be warranted.

Small Enterprise Employment Growth in Rural Africa

become increasingly recognized. Earlier empirical studies have indicated that they provide 20% to 45% of full-time employment and 30% to 50% of rural household income (Chuta and Liedholm; Haggblade, Hazell, and Brown). This is also reflected in the agricultural growth linkage literature (e.g., Haggblade and Hazell), where rural enterprise growth is typically a demand-driven spinoff of agricultural growth, as well as in the rural household studies that have

The Hazards of Small Firms in Southern Africa

Small enterprises are a ubiquitous feature of the economies of many developing countries. This study is the first to examine the duration of their survival using economic theory and modern econometric techniques. Using data sets from surveys conducted in four southern African countries, I estimate a proportional hazards model describing the closure rates of a sample of approximately 21,000 firms. There is an inverse relationship between enterprise growth rates and the closure hazard. The sector where it operates influences the hazard, as does its location. In some countries female‐headed firms are at a survival disadvantage compared to their male counterparts.

Determinants of small and micro enterprise registration: Results from surveys in Niger and Swaziland

Abstract The relationship between governmental regulations and small and micro enterprises is the subject of increasing interest in developing countries. This paper examines the determinants of small and micro enterprise registration in Niger and Swaziland using a logit framework. Our surveys show that although virtually all firms in these countries are required to register, many do not. Several firm-specific factors are significant in explaining the probability of registering, including sector, location and size. Although Niger and Swaziland were reputed to possess differing regulatory environments, there is no evidence that the likelihood of registration depends on the country in which the firm is located.

International trade and developing countries: an empirical investigation of the Linder hypothesis

This paper presents empirical evidence in support of the Linder hypothesis for five of the six East African developing countries studied here: Ethiopia, Kenya, Rwanda, Sudan and Uganda. This finding implies that these countries trade more intensively with others who have similar per capita income levels, as predicted by Linder. The contributions of this research are three-fold. First, new information is provided on the Linder hypothesis by focusing on developing countries. Second, this is one of very few analyses to capture both time-series and cross-section elements of the trade relationship by employing a panel data set. Third, the empirical methodology used in the analysis corrects a major shortcoming in the existing literature by using a censored dependent variable in estimation.

Whose fault is it? Assigning blame for grade inflation in higher education

This study attempts to isolate the potential sources of grade inflation and to measure their relative importance. We incorporate existing models of grade inflation into a model of grade inflation at the department level. Our data comprise 1683 separate courses taught in 28 different academic departments by 3176 distinct instructors at a large public university over two decades. Our results suggest that incentives to inflate grades vary according to characteristics of academic departments. However, the vast majority (over 90%) of grade inflation observed in our data is estimated to be a result of either university-level factors or instructor-specific characteristics.

Access to finance and small enterprise growth:evidence from East Java

The widespread acknowledgement of the centrality of micro and small businesses in the development process has led to a proliferation of projects and programs designed to assist and promote these businesses. This research examines the common assumption that access to credit from formal financial institutions is an important determinant of growth at the firm level. Our data are from a recent survey of 858 small businesses in East Java. We employ a full information maximum likelihood approach known as discrete factor method. The results indicate that access to credit is not a significant determinant of small firm growth; instead, other observable and unobservable characteristics of firms appear to cause growth.

African Elephants: The Effect of Property Rights and Political Stability

African elephant populations have declined by more than 50% over the past 20 years. International outrage over the slaughter led to a worldwide ban on ivory sales beginning in 1989, despite the objections of many economists and scientists, and of several southern African countries that have established systems of property rights over elephants. Far from declining, elephant populations in many of these countries have increased to levels at or above the carrying capacity of the ecosystem. This article estimates the determinants of changes in elephant populations in 35 African countries over several time periods. The authors find that, controlling for other factors, countries with property rights systems of community wildlife programs have more rapid elephant population growth rates than do those countries that do not. Political instability and the absence of representative governments significantly lower elephant growth rates.

Teaching the Prisoner's Dilemma More Effectively: Engaging the Students

We introduce a simple but particularly compelling prisoner’s dilemma classroom experiment that can be used in a variety of settings to demonstrate issues surrounding cooperative behavior (e.g., oligopoly, advertising, and public corruption). The prisoner’s dilemma occurs in all 21 class sections in our experiment. This experiment is more likely to engage students in two ways. The “payoff” in the game involves the possibility of students earning a small number of extra points. Also, we find that presenting experimental results to students enhances their interest in the material. For example, we find evidence that female students are less likely to “defect” than are male students, and that international students are more likely and seniors less likely to “defect.” Classroom discussions are greatly enhanced as a result.