Economics Commons^™

Fdi And Technical Efficiency In Manufacturing Firms: A Stochastic Frontier Approach, Yue Zhou

Master's Theses

In this paper, firm-level data from manufacturing sector in five African countries is obtained to estimate the impact of foreign direct investment (FDI) on firm’s technical efficiency. Unbalanced panel data over period of 1991-2003 shows that the existence of FDI has a significant impact on domestic firms’ technical efficiency. The results remain robust after controlling for country and year fixed effect. Other determinants of technical efficiency are investigated as well and the results show that firm size and export behavior increases efficiency while firm age lowers efficiency

Impact Of Mobile Money Usage On Microenterprise Evidence From Zambia, Laura I. Frederick

Master's Theses

Mobile money payment systems have spread rapidly around the world in the last decade. Given developing countries are powered by informal economies that traditionally have had limited access to information technologies, mobile payment system infrastructure has the potential to transform the way microenterprises conduct business. Through a pilot study in Livingstone, Zambia, I examine the effect of mobile money usage on microenterprise profits. I employ an instrumental variable strategy using the type of mobile operator as the instrument to address the selection bias in adoption, as mobile money services are available to everyone. In this urban context, I find initial …

Typhoons And Lower Birth Weight In The Philippines, Sarah Morrow

Master's Theses

Do typhoons impact birth weights of infants exposed to a typhoon while in utero? This research exploits the exogeneity and randomness of typhoons in the Philippines to estimate the impact of typhoon exposure as determined by wind speed on birth weights. Using four waves of the Demographic and Health Survey (DHS) data from the Philippines combined with temperature, precipitation, and rainfall data from the Philippines, I can empirically estimate the impact of a 1 m/s increase in wind speed on birth weights. I find that for certain subgroups of the population, specifically children born to mothers with primary education or …

Heterogeneous Effects Of Commodity Price Shocks On Inflation Rates. Evidence From A Panel Study., Odbayar Batmunkh

Master's Theses

Do commodity price shocks have heterogeneous effect on countries based on their export and import profiles? I address this question through a panel study of 142 countries using Export and Import Indexes aimed at differentiating the retail pass-through and fiscal balance channel of transmission of Commodity Price shocks on inflation. The results show that an increase in the Export Index leads to a decrease in contemporary inflation while an increase in the Import Index leads to an increase in inflation in the next year. Average causal mediating effect of the Export Index on Inflation through the Fiscal Balance was shown …

How Is Sectoral Fdi Affecting Firms’ Performance In Mozambique?, Nilza A. Abdurramane

Master's Theses

I study the effect of sectoral FDI on firms’ performance in Mozambique from 2007 to 2010 through productivity and efficiency functions, using comprehensive firm level data. Although foreign ownership has a positive effect on firms’ productivity, my results show that in general, sectoral FDI has a negative and statistically significant effect on Mozambican firms’ productivity. The findings of this study are similar to previous studies that argued that positive foreign spillovers were not automatic. Using a stochastic frontier model, to measure efficiency, I find that in general foreign firms tend to be more efficient than domestic firms. However, using this …

Can Community Water Projects Combat Child Diarrhea? Results From The Solomon Islands, Thomas G. Sackman

Master's Theses

There is a vast amount of existing literature that has empirically scrutinized whether or not community water projects have the ability to mitigate diarrheal disease. A strong and persistent belief thinks that community water projects do have the means, however, over the decades empirical work commonly finds this to simply not be true. This study expands the research question to the Solomon Islands. The research tests the hypothesis using a differences-in-differences identification strategy by utilizing the government’s staggered timing rollout of community water subprojects with whether or not a village received a community water subproject to test for a program …

Matrilineal Asset Inheritance, Female Bargaining Power, And Household Welfare In Malawi, Nicholas T. Garcia

Master's Theses

Matrilineal inheritance practices in Malawi exogenously determine female land holdings at the time of marriage, allowing for the identification of the effect of increased female bargaining power on household consumption decisions. I use the matrilineal ethnicity of the head of household as an instrument for the share of total household land inherited by the female head or male head’s wife. I find that child’s height-for-age decreases with female assets, and evidence suggesting increased consumption from households’ own production. Since the food basket from own consumption is high in carbs but not nutritious, long-term child health suffers despite receiving more resources …

The Determinants Of Urban Land And Property Values: The Case Of Rwanda, Pierre Kolowe

Master's Theses

Abstract: The paper seeks to determine the factor of urban housing values and their effects on the well-being of urban residents in terms of access to potable water, quality sanitation and other housing amenities. The study uses a total of 36 variables on structural, environmental and neighborhood attributes from the 2010-2011 survey data on income, expenditures and living conditions for the Rwandan urban households. With the use of the semi-log form of the hedonic price model and the survey data, factors of urban properties are determined and quantitative estimates of the Willingness-to-pay for environmental amenities are determined. The analysis of …

Impact Of Typhoons On Children's Human Capital Investments In Filipino Households, Kate Zitelli

Master's Theses

Typhoons are a unique type of natural disaster affecting both developing and developed countries, causing both short and long-term destruction. Typhoons are random both in intensity and frequency, making them difficult to predict their strength and when they will strike. With global climate change, typhoons are expected to increase in both frequency and magnitude, making it important to understand their impacts. This study uses DHS data from the Philippines and a unique Filipino typhoon data set covering they years 1989-2008 to explore how typhoons affect household allocation of basic human capital investments, such as breastfeeding duration. Using OLS estimation and …

Early Life Rainfall And Later Life Human Capital Outcomes In Bangladesh, Thomas Dreesen

Master's Theses

How does early life rainfall impact later life human capital outcomes in Bangladesh? This paper examines the effect of exogenous rainfall shocks that occur during individuals early-life on later life health, wealth and education outcomes of Bangladeshi women born between 1952-1988. I link historical rainfall for each woman’s birth year and Demographic and Health Survey (DHS) cluster of birth with current outcomes from the 1999/2000, 2004 and 2007 survey rounds of the DHS. This study finds that rural women with 20% higher than mean rainfall in their year and cluster of birth are on average 0.24 cm taller and score …

Women’S Empowerment And Community-Driven Development: Evidence From The Solomon Islands, Erin M. Steffen

Master's Theses

The study evaluates the impact to-date of a community-driven development (CDD) program on women’s empowerment in the Solomon Islands. Originally launched in 2008, the CDD program is known as the Rural Development Program (RDP). The RDP aims to foster employment and income growth by focusing on participatory development, demand-responsive provisions of government services, and the creation of a supportive economic environment for small-scale rural development. The RDP process mandates female involvement, which manifests predominately in the selection of community infrastructure projects and by participation in a RDP subcommittee known as the Sub-Implementation Committee (SIC). Members of the SIC are in …

Typhoons And Temperature Impact Crime Rates: Evidence From The Philippines, Emily Wetherley

Master's Theses

This study assesses the impact of typhoons and temperature on interpersonal, property, and non-index crime rates using a novel data set from the Philippines. Distributed lag OLS regression analysis shows that in the concurrent year of increased precipitation, theft rates decrease, but in the year following high average wind-speeds, theft rates increase again. The only significant result of impacts crimes against persons is the rate of physical injury which decreases in years of higher precipitation. These results are defended by interview and focus group information. This study also shows that higher average temperatures cause significantly higher rates of murder, index …

Impact Of Natural Disaster Exposure On Prosocial Preferences And Public Goods Provision: Evidence From The Solomon Islands, Heather Belfor

Master's Theses

Natural disaster exposure can impact prosocial preferences, which indicate the level of social capital, as well as create a shift in investments from public to private goods. Both are important mechanisms to study in order to create optimal climate change adaptation policies. This study evaluates the impact of natural disaster exposure on prosocial preferences and public goods provision in the evaluated communities. The data used in this research comes from a process evaluation that was carried out in the Solomon Islands on the Rural Development Program (RDP) and a Structured Community Activity (SCA) experiment, which took place in 80 villages …

Handling Risk: Testosterone And Risk Preference, Evidence From Dhaka, Bangladesh, Tobias Sytsma

Master's Theses

The relationship between testosterone and risk aversion is of increasing interest in the experimental economics. Using the ratio of the second digit to the fourth digit (2D:4D) as a rough indicator of level of prenatal testosterone exposure, this study attempts to replicate recent results from Garbarino et al., (2011), which found that individuals with digit ratios above the sample average were significantly more risk averse, and individuals with digit ratios one standard deviation below the sample average were significantly more risk seeking in a subject pool of male and female Caucasian students. Here, a subject pool from Dhaka, Bangladesh, is …

Land As Power, An Analysis Of Female Land Inheritance And Intrahousehold Bargaining In Rwanda, Eric Adebayo

Master's Theses

Do increased levels of female land inheritance lead to increases in female intrahousehold bargaining power? Analysis of an expansive Rwandan household survey dataset from 2010-2011 suggests that female land inheritances are positively associated with female intrahousehold bargaining power. The results support the relative efficacy of intrahousehold bargaining models over that of unitary household models. The findings have implications for Rwandan lawmakers debating changes to the country's “Succession law” which makes gender discrimination in land inheritance illegal. This is the first paper of its kind to estimate female land inheritance's effect on bargaining power in Rwanda.

Forecasting Short-Term Stock Returns Using Irregular Pricing Behavior In The Options Market, Thomas W. Sampson

Master's Theses

This paper uses regression analysis to examine the relationship between today's implied volatility on AMD stock options with tomorrow's return on the underlying. An economic analyis of the options markets' micro-structure is discussed to establish the intuition and the basis behind the relationship. Four seperate models are developed to examine its statistical significance and the ability of options' prices to accurately forecast returns on the underlying security.

The hypothesis of the paper is that daily changes in implied volatility can be used to earn higher than expected returns on the underlying stock. I find that implied volatility can be used …

Hip-Hop, Medellín And Social Change, Veronica Henao Posada

Master's Theses

This study explores the ways in which the Hip-hop movement is producing social change in Medellín, Colombia. Looking specifically at a Hip-hop school called Cuatro Elementos Skuela, which exists autonomously and with very little state support in the Medellín neighborhood of Aranjuez, I argue that young people are contributing to the reconstruction of the city’s social, cultural and economic fabric. I start by explaining the historical context of Medellín, describing the different sets of conflicts that unleashed high levels of violence and caused the fragmentation of the social, cultural and economic fabric. Moreover, I review the role of the …

The Plight Of Kenyan Domestic Workers In Gulf Countries, Caroline Muthoni Gikuru

Master's Theses

Kenya’s economy remains the regional leader within the East African Community (EAC) and among East African countries at large. However, political instability such as the 2007 post-election violence and the region’s social and political instability trickling into Kenya, have negatively affected the country’s economic growth. To bridge the economic gap, Kenyan women are seeking employment in the domestic service sector in the Gulf Countries, with Saudi Arabia being the most popular destination. At their destination countries, some domestic workers are subjected to various forms of abuse by their employers, leaving the worker without recourse due to the lack of legal …

A Critical Examination Of Green Economic Development As A Post-Disaster Recovery Approach: The Case Of Greensburg, Kansas 2007-2012, David Edgardo Leiva

Master's Theses

In May 2007, an EF-5 tornado ripped through and annihilated 95% of Greensburg, Kansas, a town of about 1,500 people in the southwestern portion of the state. On the heels of the disastrous Hurricane Katrina federal response and with the promise of two sitting presidents to use all of the federal support available, the town vowed not only to "survive, but thrive." Months later, Greensburg civic, business and elected leaders - with a host of external expertise - unveiled a recovery plan that not only set in motion the rebuilding of the two-square mile town but also offered the opportunity …

Effects Of Shoe Donations On Children’S Time Allocation Toms Shoes In El Salvador, Flor Calvo

Master's Theses

What are the impacts of TOMS shoe donations in rural El Salvador? This paper tries to answer the question by studying the changes in time allocation among children age 6 to 12 years in El Salvador. By taking advantage of a Randomized Control Trial performed between January 15, 2012 and February 21, 2013 I study time allocation differences between baseline and follow-up periods among treatment and control groups. The primary findings of the study show that children part of treatment communities reduced the time spent on school related activities by approximately 0.657 hours per day while increasing the time spent …

Cash-In-Hand, Wives-In-Power: An Exploratory Analysis Of Microfinance In Jordan, Lauren Pugh

Master's Theses

Microfinance is an economic policy complimentary to advancing female empowerment. Empowerment is particularly relevant in patriarchic Islamic contexts in the Middle East, however little research exists. Due to counterfactual creation and inconsistent empowerment measurement, the true impact is debated. This research proposes intra-spousal decision-making outcomes as the appropriate proxy to empowerment and uses a nuanced approach of counterfactual creation by utilizing responses from previous microfinance borrowers. Survey data from a Jordanian MFI is used to examine the endogeneity story and cash-in-hand effects on intra-spousal decision-making outcomes. An instrumental variable estimation technique finds a weak link between microfinance and empowerment.

Risk, Religion, And Islamic Microfinance, Dunia Aburish

Master's Theses

This research design creates a framework in which the risk preferences and Islamic religiosity of Jordanian borrowers can be estimated. Specifically, this study highlights the different characteristics of conventional and Islamic microfinance borrowers. Although there is extensive literature on the topics of conventional microfinance and Islamic finance individually, few studies characterize borrowers who choose between these financial products. For this study, field research was conducted in conjunction with the National Microfinance Bank (NMB) and the Development and Employment Fund (DEF) in Jordan. Overall, 143 conventional and 78 Islamic borrowers were surveyed for a total sample of 221 borrowers. To estimate …

The Fii Model As An Investment In Patience: Exploring Time Preferences In Medellin, Colombia, Jennifer Graham

Master's Theses

The motivation for this research is to explore the success behind the Oakland based Family Independence Initiative (FII) as a model for poverty alleviation. During the period of June-December 2012, nearly 200 small business owners in Medellin, Colombia participated in a field experiment intended to replicate the FII model by randomizing the treatments of setting goals, receiving conditional payments, and participating in self-help groups, as well as the combinations thereof. The data shows that the subjects in the full FII treatment group achieve more goals and have significantly higher monthly sales than those subjects in any other treatment or control …

Different Uses Of Microfinance Among Conventional And Islamic Borrowers: Evidence From Jordan, Ngan Bui

Master's Theses

The paper focuses on investment decisions made by microfinance borrowers in Jordan. While there has been a lot of literature concentrating on the level of investment after credit access was made available, there has been very limited research on the impact of Islamic microfinance. The amount of literature comparing Islamic financing and its conventional counterpart is even more uncommon. This study will look at how conventional and Islamic borrowers differ in their decisions pertaining to business investments, home improvement projects and consumer durable goods. Results show that microfinance loan take-ups do lead to a higher probability of business investments. In …

Incentives To Improve Economic Conditions: A Field Experiment In Medellin, Colombia, Lauren Skora

Master's Theses

The motivation for this research is to replicate the Oakland based Family Independence Initiative (FII) and to test the components of this model. The FII program claims its success stems from a bottom-up approach structured around setting life-improving goals, mutual support groups, and small monetary incentives to achieve results. As the popularity of this program continues to gain momentum in the United States, we designed a field experiment to measure the impact of incentives on goal achievement and economic conditions as well as the overall impact of the FII model. We enrolled close to 200 small business owners in four …

Does Child Sponsorship Have A Positive Impact On The Quality Of Life And Social Behavior Of Sponsored Children? Evidence From Indonesia, Mario Carrillo

Master's Theses

Relaxing an internal constraint of an individual at early stages of life is an approach that complements traditional policy interventions aimed to alleviate poverty. The Compassion International child sponsorship program focuses their work on the emotional, social, and spiritual development of sponsored children. This study investigates the impacts of child sponsorship on the quality of life and social behavior of sponsored children using age-eligibility as an instrument for sponsorship, a time preference experiment and a trust game. The study looks specifically at self-esteem, optimism, social trust, educational outcomes, patience and reciprocity of 286 sponsored children and 234 non-sponsored children between …

Do Self-Help Groups Work On Achieving Economic Goals? New Evidence From A Field Experiment In Medellin, Colombia, Paulina Aguinaga Lezcano

Master's Theses

Abstract: This research is the first study to introduce an experimental setting to test the implication of a poverty alleviation model inspired by the Family Independence Initiative (FII) in a developing country. The FII is a poverty alleviation approach that has shown remarkable results in improving the living conditions of low-income individuals in three cities of the United States. It promotes self-improvement through setting goals, incentive schemes, and self-help groups (SHGs). The results suggest that the FII model can be successfully implemented as a poverty alleviation policy in a developing country. The model does have a positive and significant effect …

Can Neoclassical Trade Theory Explain Congressional Voting?, John Dellipriscoli

Master's Theses

The neoclassical trade model has notoriously been unable to empirically predict trade flows throughout the world, however there has been a notion that the same theories and predictions could also be applied to democratic voting on free trade legislation. Using roll-call votes on three 2011 United States bilateral trade agreements with Colombia, Panama, and South Korea, respectively, a simple empirical model based on the neoclassical concepts, specifically the Heckscher-Ohlin and Stolper-Samuelson corollary theorems, is outlined. After an analysis using a logit estimation method, it is revealed that there is conflicting evidence whether the voting on the 2011 free trade agreements …

Why Risk It? The Effect Of Risk And Time Preferences On Microfinance Loan Default, Nike Start

Master's Theses

Microfinance is widely recognized as a powerful method for poverty

alleviation. However, little is known about the characteristics of those who

default on their loans. Understanding the behavior of borrowers is an important

component of mitigating adverse selection and the moral hazard of lending. Both

of these concepts embody some of the greatest challenges faced by microfinance

institutions, and they provide the major motivation for this study. Accordingly,

the main objective of this research is to investigate whether non-delinquent

borrowers and delinquent borrowers of a microfinance institution reveal any

difference in their level of risk preference and time preference. This …

Migration And Children's School And Labor: Evidence From El Salvador, Zachary Intemann

Master's Theses

This paper examines the impact of parental migration on schooling outcomes for children left behind in El Salvador. Using cross sectional data collected in 2012, outcomes for children are observed for children with migrant parents. The outcomes are also analyzed by gender of the migrant parent who left his or her child behind. Results are observed using instrumental variable estimations, as well as a seemingly unrelated regression to estimate the impact of migration on a child’s time allocation. Outcomes are also analyzed measuring the impact of remittances. Results show that children with at least one migrant parent will complete more …