Search

Begin New Search Publication Year within 3 Years Publication Year within 5 Years

8561. The impact of COVID-19 on urban informal workers in Maputo

Author:
Nilifer Anaç, Eva-Maria Egger, Sam Jones, Ricardo Santos, and Alex Warren-Rodriguez
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Informal self-employed traders in developing countries are vulnerable to shocks as they often lack access to social insurance or formal finance. This study investigates the impact of the COVID-19 pandemic on these urban traders in the capital of Mozambique, Maputo. Drawing on longitudinal phone survey data over six months, we find they experienced significant negative shocks to earnings, leading to a reduction in savings as well as worsening food security and assets. Individuals simultaneously affected by a municipal policy to remove informal traders from a central market were hit particularly hard as they lost their clients and market stalls. We simulate that a cash transfer equivalent to the government’s proposed COVID-19 response would have significantly buffered these shocks. The findings point to the need for a more shock-responsive social protection system, easy access to liquidity and provision of market infrastructure for informal traders.
Topic:
Urban, Trade, COVID-19, and Informal Economy
Political Geography:
Africa and Mozambique

8562. Trust as state capacity: The political economy of compliance

Author:
Timothy Besley and Sacha Dray
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper explores the link between trust in government, policy-making, and compliance. It focuses on a specific channel whereby citizens who are convinced that a policy is worthwhile are more motivated to comply with it. This in turn reduces the government’s cost of implementing a policy and may also increase the set of feasible policies. Thus, state capacity is greater when citizens trust their government. The paper discusses alternative approaches to modelling the origins of trust, especially the link to the design of political institutions. We then provide empirical evidence consistent with the model’s findings that compliance is increasing in trust using the Integrated Values Survey and voluntary compliance during COVID-19 in the UK. We also show that countries with high levels of citizen trust in government were more likely to implement policies requiring voluntary compliance during the COVID-19 pandemic. The paper suggests that trust in government can play a role in building and expanding state capacities.
Topic:
Government, Political Economy, Capacity, Compliance, and Trust
Political Geography:
Global Focus

8563. The determinants of domestic saving in Kenya

Author:
Rodgers Musamali, Cecilia Mutia, and Rose Ngugi
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The savings–growth nexus is widely acknowledged, both in policy and in the literature. But Kenya’s numerous policy initiatives to encourage savings mobilization are yet to yield the expected outcomes. This paper identifies the key drivers of domestic saving in Kenya, exploiting fintech as an alternative channel for savings mobilization, and drawing lessons from the Kenyan experience so far. Using data from various sources, and employing an autoregressive distributive lag estimation model, we find that in the long run, private saving is positively and significantly influenced by the per capita income growth rate, inflation, and age dependency ratio, and negatively influenced by the public saving rate and terms of trade. National saving is positively and significantly influenced by the per capita income growth rate, inflation, and private sector credit growth rates in the long run. Wealth and deposit rates negatively influence national saving. Based on these findings, we recommend the following interventions to grow savings in Kenya: creating decent employment opportunities to enhance income growth; providing sustained financial development with a focus on savings mobilization; creating an enabling environment for the private sector; taking advantage of Kenya’s young population; exploiting mobile money platforms to boost savings. Moreover, households show targeted saving behaviour where they accumulate financial savings and then transform them into savings in kind. Therefore, accounting for savings should go beyond the traditional focus on bank deposits and incorporate savings held in other forms. Households also use non-formal platforms for saving, and we suggest that existing barriers to formal saving platforms be removed to direct more saving into formal channels.
Topic:
Economic Growth, Saving, Income, and Fintech
Political Geography:
Kenya and Africa

8564. Furthering LGBTIQ+ Inclusion and Rights through Feminist Foreign Policy

Author:
Elise Stephenson, Jack Hayes, and Matcha Phorn-In
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
International Women's Development Agency (IWDA)
Abstract:
The problem with international development is that some human rights defenders are sexist, some feminists are transphobic and homophobic, and some LGBTIQ+ advocates racist
Topic:
Foreign Policy, Feminism, LGBT+, and Inclusion
Political Geography:
Global Focus

8565. The intersection of Human Rights and Feminist Foreign Policy

Author:
Leanna Smith
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
International Women's Development Agency (IWDA)
Abstract:
As the failure of long-standing institutions and structures leaves nations and multilateral systems running out of options, a new foreign policy model – one that focuses on local and indigenous knowledge; engages civil society; has a commitment to peace, to empathy over sovereignty; and is serious about justice, and inclusion – may be starting to look viable, even for those reluctant to give up their entrenched systemic and institutional power and the associated privileges.
Topic:
Foreign Policy, Human Rights, Feminism, and Intersectionality
Political Geography:
Global Focus

8566. Tax provisioning by extractive industry multinational subsidiaries

Author:
Khanindra Ch. Das
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Extractive industries are spread across mining of metal and minerals, oil and gas, among others. Multinationals in these sectors are confronted with different challenges ranging from corruption, political risk, economic uncertainty, sunk costs, and the long-gestation periods to execute projects. As a result, tax payment behaviour of subsidiaries in the extractive sector could be dependent not only on these factors, but also on the life cycle of the subsidiary, profitability, and holding structure. Furthermore, emerging economy multinationals in the extractive industries could be state-owned and may invest in foreign subsidiaries for strategic reasons. We examine tax provision in host countries by India’s multinational subsidiaries in the extractive industry. Panel data analysis is carried out for the period 2010–20. It is found that tax provision remains lower in the initial years of subsidiary life and increases with the sustenance of subsidiary in the host country for a longer period. In addition, subsidiaries of public sector enterprises are found to have higher tax provisions than their private counterparts. When it comes to the determinants, economic policy uncertainty, corruption, and political stability are found to significantly affect tax provision.
Topic:
Corruption, Political stability, Multinational Corporations, Tax Systems, Economic Policy, Public Sector, Extractive Industries, and Uncertainty
Political Geography:
South Asia and India

8567. Marriage market responses in the wake of a natural disaster in India

Author:
Shreyasee Das and Shatanjaya Dasgupta
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper examines the impact of the 2001 Gujarat earthquake on age at marriage and other assortative matching outcomes. Using the 2004–05 wave of the India Human Development Survey and employing a difference-in-differences strategy, we document that the earthquake reduced the age at marriage for both men and women and decreased the likelihood of women marrying into wealthier households. Additionally, we find no changes in matching by educational status or in the likelihood of intra-caste and out-of-village marriages. The results are driven by districts that were severely affected by the earthquake in terms of deaths and destruction. Our conjecture is that the negative economic shock pushed parents to marry off their daughters early to save on dowry expenditures. We confirm this underlying mechanism by using a proxy for dowry payments. Our results highlight how the institution of marriage can induce long-lasting demographic changes after a natural disaster.
Topic:
Natural Disasters, Marriage, Earthquake, and Dowry
Political Geography:
South Asia and India

8568. Agricultural risks, the COVID-19 pandemic, and farm household welfare and diversification strategies in Africa

Author:
Abdul Malik Iddrisu, Alhassan Abdul-Wakeel Karakara, and Evans S. Osabuohien
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Agricultural activities in many African countries are bedevilled by a range of risk factors. Using micro-level household datasets from a range of countries in Africa, we examine the drivers of agricultural risks, while exploring the role of context as well as the impact of the COVID-19 pandemic on household welfare, with a focus on farm households relative to their non-farm counterparts. We demonstrate that the probability of experiencing risks related to agriculture is significantly influenced by a range of individual- and farm-level/contextual factors, with these effects showing considerable variations across contexts and countries in Africa. We also find that farm households witnessed important reductions in their incomes during the COVID-19 period in Uganda. The study contributes to the design of evidence-based approaches to reducing farmers’ vulnerabilities to agricultural risks and pandemic-related shocks.
Topic:
Agriculture, Welfare, COVID-19, and Farming
Political Geography:
Africa

8569. The effect of wage subsidies on job retention: Evidence from South Africa during the COVID-19 pandemic

Author:
Timothy Köhler, Robert Hill, and Haroon Bhorat
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Wage subsidies have served as a primary labour market policy used around the world to mitigate job losses in response to the COVID-19 pandemic. In South Africa, where unemployment is among the highest globally, the Temporary Employer–Employee Relief Scheme supported millions of workers in a far-reaching and progressive manner. We make use of unique labour force panel data to estimate the causal effect of the policy on short-term job retention among formal private sector workers, who represent the majority of workers in the country, by exploiting a temporary institutional eligibility detail and estimating a difference-in-differences model. We find that the policy increased the probability of remaining employed by 16 percentage points in the short-term. This finding holds when subjected to several robustness tests. We further estimate heterogeneous and progressive effects across the wage distribution with larger effects observed for lower-wage workers, against a backdrop of regressively distributed job loss in the country. Our analysis provides evidence on the role of wage subsidies in the mitigation of job loss during crises in developing countries.
Topic:
Employment, Wage Subsidies, COVID-19, Labor Market, and Job Loss
Political Geography:
Africa and South Africa

8570. Unravelling Africa’s raw material footprints and their drivers

Author:
Albert Kwame Osei-Owusu, Michael Danquah, and Edgar Towa
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper applies an environmentally extended input–output analysis, leveraging the Eora database, to estimate the global raw material footprints of 51 African nations from 1995 to 2015. It employs least absolute shrinkage and selection operator and panel regression models to quantify the effects of diverse variables on Africa’s raw material footprints. The findings show that the raw material footprints of Africa’s production and consumption soared by 41 per cent and 38 per cent, respectively, from 1995 to 2015, mainly driven by biomass and construction materials. They show that Africa outsources 25 per cent of its raw material footprints from consumption, while over 60 per cent of its footprints from production arise from its exports. Our findings beckon African governments to reduce the excessive focus on exploitation and concentrate on combatting corruption and extreme rent-seeking while decoupling Africa’s raw material footprints from rising public debt, carbon emissions, income levels, and population.
Topic:
Economics, Carbon Emissions, Public Debt, Income, Raw Materials, and Input-Output Analysis
Political Geography:
Africa

8571. So close and yet so far: the ability of mandatory disclosure rules to crack down on offshore tax evasion

Author:
Elisa Casi, Mohammed Mardan, and Rohit Reddy Muddasani
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We study the short-term effect of the introduction of the mandatory disclosure programme for aggressive tax arrangements by focusing on the one introduced in May 2018 under Council Directive 2018/288/EU (or DAC6). Employing bilateral data on cross-border deposits, we study the effect of this new disclosure requirement on cross-border tax evasion. Our results show a reduction of cross-border deposits in EU countries with strong enforcement, captured by large monetary penalties for misreporting. At the same time, we document a relocation of income and wealth to countries with limited intermediary reporting obligations. Finally, we detect a shortterm increase of US$14 billion in cross-border deposits held in countries offering citizenship/residence by investment programmes, suggesting the use of these schemes as regulatory arbitrage to circumvent the disclosure mandated under DAC6. We provide timely and relevant evidence contributing to the debate on international administrative cooperation to reduce cross-border tax evasion.
Topic:
European Union, Finance, Banking, Tax Evasion, and Administrative Cooperation
Political Geography:
Europe and Global Focus

8572. A model to explain the impact of government revenue on the quality of governance and the SDGs

Author:
Stephen G. Hall and Bernadette O'Hare
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper empirically investigates the link between the level of government revenue per capita and six indicators of quality of governance in an unbalanced panel data set consisting of all countries in the world (217) using data from 1980 to 2020. It uses single-equation GMM techniques and a VAR and VECM approach to investigate this link. The results show a strong effect over time whereby an increase in government revenue leads to a steady improvement in governance. These findings suggest an important virtuous circle between government revenue and governance, indicating that additional government revenue can significantly impact the Sustainable Development Goals more than our previous work has suggested.
Topic:
Corruption, Governance, and Sustainable Development Goals
Political Geography:
Global Focus

8573. Does aid fragmentation affect tax revenue dynamics in developing countries? Observations with new tax data

Author:
Ali Compaoré and Abrams M. E. Tagem
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
There exists a burgeoning empirical literature on the impact of aid fragmentation on development outcomes in aid-receiving countries, with it being widely recognized that aid fragmentation is deleterious. This paper adds to the existing literature by estimating the impact of aid fragmentation on tax revenue mobilization in developing countries. Drawing on the popular system generalized method of moments technique to counter endogeneity issues, this study focuses on a sample of 90 developing countries covering the period from 2000 to 2020. We show that aid fragmentation, measured by the Herfindahl index, has a significant negative impact on recipient countries’ tax revenue ratios, an impact that is not mitigated by the level of institutional quality. The paper also explores the impact of aid fragmentation on tax structure and finds convincing evidence that direct taxes, particularly corporate income taxes, are the most affected. Value-added tax is the only indirect tax affected by aid fragmentation.
Topic:
Development, Tax Systems, Institutions, and Revenue
Political Geography:
Global Focus

8574. Employer power and employment in developing countries

Author:
Nancy H. Chau, Ravi Kanbur, and Vidhya Soundararajan
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The issue of employer power is underemphasized in the development literature. The default model is usually one of competitive labour markets. This assumption matters for analysis and policy prescription. There is growing evidence that the competitive labour markets assumption is not valid for employment in developing countries. Our objective in this paper is to review this evidence, to present theoretical and policy perspectives that follow from it, and to highlight areas for further research.
Topic:
Development, Employment, and Labor Market
Political Geography:
Global Focus

8575. Fintech in sub-Saharan Africa

Author:
Njuguna Ndung'u
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper traces the development of fintech in sub-Saharan Africa, its evolution over time, and the unfolding benefits attained at each stage of its adoption and market evolution. From the onset, fintechs have revolutionized retail electronic payment systems—a revolution that has evolved into a technological platform to manage micro-savers’ accounts, virtual savings and credit systems, public financial management, and cross-border remittances, and has led to the adoption of new monetary policy frameworks. The uptake of fintech products has led to increased financial inclusion for underserved and unserved populations, improvement of welfare, and the efficient and cost-effective provision of services across all sectors of the economy. The paper also outlines the challenges that persist and need to be addressed to allow the rapid uptake of fintech products and solutions in sub-Saharan Africa. The paper concludes that the fourth Industrial Revolution, driven by fintech, has the potential to propel the continent to higher levels of savings, investments, employment, and inclusive growth, provided an appropriate legal and regulatory framework is put in place and resources are channelled for sufficient infrastructural development.
Topic:
Science and Technology, Inclusion, Savings, and Fintech
Political Geography:
Africa and Sub-Saharan Africa

8576. Gender preference at birth: A new measure for son preference based on stated preferences and observed measures of parents’ fertility decisions

Author:
Mehwish Ali, Ashton de Silva, Sarah Sinclair, and Ankita Mishra
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Investigating preference for sons is a continuing focal area of development economics and demographic research. Son preference presents a challenge in achieving the United Nations Sustainable Development Goals of ‘no poverty’, ‘good health and wellbeing’, and ‘gender equality’ by 2030. It is thus important to investigate son preference to inform policy-makers of the potential challenges in achieving these goals. Inaccurate interpretation of the mechanisms of son preference could misinform policy analysis and result in unintended consequences. Existing measures including sex ratios and gender composition of children do not reflect the true extent of son preference in high fertility countries such as Pakistan, where the success of policy action is limited and significant barriers to sex-selective technologies exist. Given the likely impact of son preference on fertility behaviour in Pakistan, accurate measurement of the forms this gender bias can take is necessary to appropriately gauge the influence of son preference on the fertility outcomes. The limited capacity of existing measures to accurately depict son preference in countries with high fertility combined with limited demarcation between pre- and post-birth son preference warrants development of a new measure for son preference to evaluate its effects. In this paper, a new measure of son preference called ‘gender preferences at birth’ (GPB) is presented. GPB combines stated fertility preferences and observed fertility outcomes to acknowledge that households in countries with high fertility and low contraception usage have less control over their fertility decisions.
Topic:
Economics, Sustainable Development Goals, Welfare, Family Planning, Fertility, and Gender
Political Geography:
Pakistan, South Asia, and Global Focus

8577. Determinants of corporate cash holdings in South Africa

Author:
Ewa Karwowski, Hanna Szymborska, Keagile Lesame, and Tlhologelo Thoka
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Globally, corporate cash holdings have risen since the 1980s. In South Africa, some commentators have accused corporations of engaging in an ‘investment strike’, while others see corporate liquidity as a precaution against systemic uncertainty. We use the unique South African Revenue Service/National Treasury firm-level dataset to scrutinize corporate liquidity, using panel analysis. Relative to GDP, corporate cash and liquidity holdings have not increased between 2010 and 2017. However, corporate cash is high in international comparison and has grown at the firm level. We do not find evidence for the hypothesis that companies are engaging in an investment strike. Cash and liquidity are shaped by idiosyncratic and sectoral risk factors. In the short run, heightened uncertainty might reduce corporate cash and liquidity as firms struggle to adjust to an unexpected economic situation. In the medium run, we find a strong association between political uncertainty and corporate cash and liquidity holdings.
Topic:
Economics, Corporations, Liquidity, and Cash
Political Geography:
Africa, South Africa, and Global Focus

8578. Standardization and ethnocracy in Sri Lanka

Author:
Neil DeVotta
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Standardization was the scheme that replaced meritocracy in Sri Lanka education, with positive discrimination to increase the majority Sinhalese community’s university enrolment. It did so by minimizing better-qualified minority Tamils’ university entry, even as the quest for Tamil separatism was gaining ground. The government claimed the scheme was justified to create a more balanced representation in science-based university fields, but it was among the policies that contributed to the island becoming an ethnocracy. While standardization was later discarded, its legacy continues thanks to the district quota system it fostered and the inequalities it helped to cement between ethnic groups. Ultimately, standardization did not merely complicate existing inequalities; it also contributed to anomie and substandard professionalism within the educational and governmental sectors. A path dependence explanation helps us to better understand why the policy was instituted, and why district quotas continue to operate.
Topic:
Education, Inequality, Ethnicity, Separatism, Standardization, Path Dependency, and Ethnocracy
Political Geography:
South Asia and Sri Lanka

8579. Reigniting labour productivity growth in developing countries: Do structural reforms matter?

Author:
Kwamivi Gomado
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
While the negative effects of the 2008 global financial crisis on labour productivity are still fresh in people’s minds, the COVID-19 pandemic raises concerns that productivity will continue to decline. To boost labour productivity and regain economic performance, there is an empirical consensus on the role of structural reforms that allows an efficient reallocation of resources such as labour by reducing rigidities in markets. This study analyses the role of certain structural reforms in improving labour productivity in 35 developing countries over the period of 1990–2014. From the local projection method, our results show that structural reforms have a positive impact on productivity growth in the short and medium terms. The results also illustrate that reforms induce an efficient reallocation of resources within but not between sectors. Taking the business cycle into account in estimates shows that structural reforms stimulate labour productivity growth better in periods of low economic growth.
Topic:
Labor Issues, Financial Crisis, Reform, Business, Economic Growth, and Productivity
Political Geography:
Global Focus

8580. Inclusion amid ethnic inequality: Insights from Brazil’s social protection system

Author:
Natasha Borges Sugiyama
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Policy frames in Brazil have long run up against conflicting visions and understandings about the causes and consequences of group-based inequality. This paper argues that a class-based lens has dominated the social protection framework. In recent years, political leaders have framed social policy measures along ‘universal’ class lines with the aim of improving poverty and wellbeing. This framing is reflective of Brazil’s national narrative on race relations and the idea that class and employment status have been the most salient barriers to social welfare protections. Brazil’s widely well-regarded anti-poverty conditional cash transfer programme, Bolsa Família (2003–21), is emblematic of the country’s universal and ‘race-blind’ approach to social policy. But given the strong correlation in Brazil between ethnicity and income, social protection policies such as the Bolsa Família have indirectly targeted vulnerable black and brown citizens. The analysis addresses how social policy has contributed advances to wellbeing in general and for Afro-Brazilians. A comparative perspective on social welfare systems offers important lessons on how poverty relief can further human development and enhance agency. Future reformers can learn from Brazil’s pursuit of poverty reduction alongside administrative procedures that identify vulnerable groups, as a strategy to address intersectional inequalities of ethnicity and class.
Topic:
Poverty, Race, Inequality, and Welfare
Political Geography:
Brazil and South America