Hidden Inequalities and Preparedness Interventions from Gender, Labor and Environmental Perspectives
Sunday, Jan. 7, 2024 8:00 AM - 10:00 AM (CST)
Evelyn Wamboye, Pennsylvania State University
- Fafanyo Asiseh, North Carolina A&T State University
Gender and Firm-Level Corruption: New Evidence from Egypt
AbstractThis study provides the first evidence of diminished gender differences in bribery incidence but significant gaps in bribery magnitude in North Africa. We incorporate the gender of firm top managers in theoretical frameworks explaining the incidence, magnitude, demands, and perceptions of corruption. Using a panel data set on informal payments by firms in North Africa during 2013-2020 and a battery of conditional fixed effects, ordered logit, and Tobit models, we show that gender differences in bribery incidence diminish in settings with weak control of corruption. Hence, women are not less likely to pay bribes but pay smaller amounts. However, female managers are more requested to provide informal payments, with stronger evidence for Egypt. By providing this evidence, we are able to refute the argument that smaller levels of bribery among women may be due to women being asked for bribes less often. We also show that female managers perceive corruption as a bigger obstacle to their firms’ operations in North Africa but not in Egypt. Diverging from the prevalent evidence, we find that the incidence and magnitude of corruption are not driven by entirely different processes when control over corruption is weak. A firm's need to pay bribes is more explained by the control maintained by public officials over it and its visibility. While a firm’s bargaining strength, especially its ability to pay, explains a large part of the variation in the bribe’s magnitude, control rights continue to be effective. Anti-corruption measures will benefit from adopting a gender-sensitive approach.
Interrogating the Inflation-Corruption Nexus for Developing Countries: The Case of Ghana - Stephen Armah
AbstractThis paper examined the corruption-inflation nexus for Ghana using the Bounds Test for cointegration and the Non-Linear Autoregressive Distributed Lag (NARDL) Model. Results confirm cointegration in the presence of asymmetry depending on the time horizon. The analysis revealed that although there is an asymmetry in the magnitude response of inflation to corruption in the long run, the same cannot be confirmed for the short run. In the long run, when lagged inflation increases by a unit, corruption increases by 0.028. When the lag of inflation decreases by a unit, corruption falls by 0.021. The Wald test confirms the difference is significant. In comparison, the exchange rate has no asymmetric relationship with corruption in the long run. Further, asymmetry cannot be confirmed in the short run for both inflation and the exchange rate. Even though the NARDL does accommodate simultaneity bias, VAR was estimated and compared to the (N) ARDL results because of the possible simultaneity bias. VAR results confirmed the existence of a positive relationship between inflation and corruption. Granger causality also runs from inflation to corruption. The result is consistent with empirical findings confirming a positive relationship between corruption and inflation, with causality running from inflation to corruption. Since inflation undermines purchasing power, distorts economic planning, and encourages corruption in Ghana, the government must redouble efforts to tackle inflation to reduce corruption.
Pathways to Sustenance: Exploring the Effect of Input Subsidies on Food Security in Zambia through Causal Mediation Analysis
AbstractFood security is a pressing issue for smallholder farmers in Zambia. The government has implemented input subsidies to improve agricultural productivity and food security, but there is insufficient empirical evidence on their impact on food security outcomes. This research aims to fill this gap by examining the link between input subsidies and dietary diversity, as well as the mechanisms through which subsidies affect food security outcomes. We use instrumental variable-based mediation analysis and a nationally representative sample of 7,733 smallholder farmers from Zambia. Preliminary results reveal positive effects of input subsidies on household dietary diversity, with crop seed quantity and basal/top dressing amounts of fertilizer as input packages being significant pathways. These results offer recommendations for improving the distribution and effectiveness of input subsidies. By identifying factors that mediate the impact of input subsidies on food security outcomes, this study can help policymakers design more impactful policies and interventions to combat food insecurity among smallholder farmers in Zambia and other similar contexts.
Analysis of Staple Food Price Volatility in Sub-Saharan Africa: Evidence from the GARCH Model
AbstractHousehold access to food is determined primarily by income and market factors such as food price volatility. Understanding factors that affect food price volatility is important in reaching food security. The study aimed to investigate the price volatility of two major staple crops, corn and rice in 20 sub-Saharan African countries. Data for this study were from the World Bank Monthly Food Prices Estimates and the World Development Indicators. We looked at 10 years of data from 2013:1 to 2023:4. We used the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model to measure the volatility of the food commodity prices and estimate the factors that drive these prices. Control variables that were used include the share of staples in food consumption, exchange rate, GDP per Capita, and crude oil price. Preliminary findings indicate that crude oil prices, previous food prices, and the share of staples in food consumption had a positive significant effect on food prices. Policymakers should support farmers with inputs and subsidies needed for the production of these staple food.
Gender, Small Businesses and Financial Accessibility: A Case Study of Sub Saharan African Countries
AbstractAre firms with females as top managers less likely to get access to finance compared to firms with males as top managers? What factors contribute to access to finance by these firms? Did COVID-19 change access to finance across genders? Our study uses the COVID-19 WBES and the World indicators to analyze how gender affects firms' access to financial services. Our study focused on Somalia, Zambia, and Zimbabwe. Preliminary results from our study showed that there were differences across gender in access to finance. Female-headed firms had a lower chance of accessing financial services compared to their male counterparts. We also find that the age of the firm, size, and firm location all influenced access. Comparing pre and post-COVID -19 eras we find that more women-led businesses are engaged in applying for financial support for their businesses. The results of this study imply that women-led businesses should be provided with the resources needed to ensure the success of their firms.
- I3 - Welfare, Well-Being, and Poverty