Obstacles in International Development
Paper Session
Saturday, Jan. 7, 2023 2:30 PM - 4:30 PM (CST)
- Chair: Jamein Cunningham, Cornell University
Do Public Transfers Crowd-Out Private Transfers?
Abstract
Over the past few decades, there has been an explosion of formal cash-transfer programs and research assessing their impacts on outcomes such as education, health, and poverty. There has also been a growing literature studying the impacts of informal cash transfers in the form of remittances (i.e., money sent by migrants to family/friends) on similar outcomes. These literatures have evolved in parallel without much attention to their potential interactions. However, the potential relationship between public and private transfers is theoretically and empirically relevant. For policy purposes, it is essential to know whether cash transfers and remittances substitute or complement each other and how strongly, since this could have implications for welfare.In this paper, our contribution lies in providing an empirical exploration of these channels, using the cash transfer literature as the starting point. Specifically, we conduct a detailed review of over 600 cash transfer studies and their associated datasets to identify whether remittance variables (e.g., money sent to and/or received from friends/family) exist in such datasets. We then combine these micro-level datasets to conduct an empirical analysis of the relationship between formal cash transfers (our measure of public transfers) and informal remittances (our measure of private transfers).
Income Inequality Evolution in Nigeria: What Matters?
Abstract
Inequality is extensive in Nigeria and encompasses various dimensions such as income, access to capital and education. Within these dimensions there is past evidence of significant heterogeneity in inequality across gender, ethnicity and location which requires further examination using more recent data and alternative econometric techniques. In addition, Nigeria has been characterized by lopsided patterns of development. Inequality, conflict and slow structural transformation and economic growth are some of the explanations provided for this pattern. In this paper, we attempt to identify the factors contributing to the evolution of inequality at the local government level in Nigeria over time. While existing studies on inequality in Nigeria have examined factors that matter in driving within country inequality, the estimation methods used are only able to identify correlations. Moreover, the past studies do not provide a window into more recent trends. The goal of this paper is to be begun to close this gap. To identify the factors driving inequality across LGA's in Nigeria, we make use of the most recent four waves of the Nigerian Living Standard Measurement Survey (LSMS) panel data set(2010/2011/ 2012/2013 and 2015/2016, 2018/2019) . The panel nature of the dataset will be exploited in the identification of the determinants of changes in inequality across LGA's in Nigeria. To the best of our knowledge, this paper is the first to attempt to gain a better understanding of what factors underlie income inequality at community level. Understanding these factors is important in coming up with effective regional policy solutions.Was Africa Really Spared? Impact COVID 19 on Food Insecurity in Five Countries in SSA
Abstract
COVID 19 affected several aspects of the global economy. However, developing countries were had the most effect economically. Food insecurity has several long term and short term effect on the household and health of the children in the household. In this study we used the World Bank micro data on COVID 19 phone survey to analyze the impact of COVID 19 on food insecurity in 5 countries in sub-Saharan Africa. With more than 1,000 households interviewed we used a fixed-effects model to analyze the factors that contributed to food insecurity as well as the impact of food insecurity on rural households. We find that COVID 19 increased household food insecurity in general. We also find that females and children were more impacted compared to males. Some interesting finding from our study was that more people move from off-farm employment to on-farm employment.Cryptocurrency: Implications as Legal Tender
Abstract
To the extent that currency is a store of value, medium of exchange, and a unit of account to ensure stability in an economy. The recent adpotion of bitcoin as a legal tender by some countries in South America provides us with an opportunity to assess how crtypocurrency satisfies the characteristics of money. The volitality and speculative nature of crytpocurrency may disrupt the economies of these countries, however, the instability of prices may have forced these regions to adopt cryptocurrency as their medium of exchange. This paper considers if Bitcoin, Ethereum, and Ripple may serve as good legal tender around the world. Using the Taylor rule model and data from Yahoo Finance, OECD, and World bank, parameter estimates may reveal that the rate of inflation may not be proportionate to the federal funds rate as projected policies implemented by the central bank of these countries. This suggests that to the extent that a standard and generally acceptable medium of exchange has a speculative component to its demand, crytopcurency such as Bitcoin, Ethereum, and Ripple may not be good candidates as a medium of exhhange of developed economies, but may serve as legal tender for developing economies experiencing high inflation rates.Discussant(s)
Jhacova Williams
,
American University
Caroline Theoharides
,
Amherst College
Gbadebo Odularu
,
Virginia Military Institute
Vidhura Tennekoon
,
Indiana University and Purdue University
John Ned
,
Pepperdine University
JEL Classifications
- O1 - Economic Development
- J1 - Demographic Economics