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While formal institutions are considered rather stable in Western countries, the same cannot be said of those in Latin America and the Caribbean (LAC). In LAC, these institutions are superseded by nonformalized but deeply embedded practices—especially of political favoritism. Accordingly, this paper explores how members of parliament in LAC favor their birth regions by providing clientelistic goods and services to their constituents. The paper shows that the development of subnational regions is affected by their proximity to parliament leaders' birthplaces. We collect data on 366 political leaders' birth locations over 1992–2016 and construct a panel of approximately 183,000 subnational micro–regions across 45 LAC countries/autonomous territories. Our results show that incumbent parliament leaders favor regions near their birthplaces, as measured by night light emissions and World Bank aid. This favoritism is enabled by the patterns of formal institutional weakness, and de jure plus de facto influence given to the parliament by the particularly unstable constitutions of LAC countries. • In LAC, institutions are often overshadowed by non–formalized but deeply embedded corrupt practices such as favoritism. • This study shows how the development of subnational regions is affected by their proximity to parliament leaders' birthplaces. • It comprises approximately 183,000 subnational micro–regions across 45 LAC countries/autonomous territories. • Data was collected on 366 political leaders' birth locations over the years 1992–2016. • Leaders of parliament in LAC favor their birth regions by providing clientelistic goods and services to their constituents. • Not just presidents but also parliament leaders engage in regional favoritism. [ABSTRACT FROM AUTHOR]

• Cross-sectional studies suggest: Economic growth increases migration in poor countries. • Yet, neglecting systematic country differences risks an omitted variable bias. • The panel estimations in this paper yield contrasting results: Emigration falls as incomes increase. • These results imply that conducive economic policies can actually reduce emigration. Comparing emigration rates of countries at different stages of economic development, an inverse u-shape emerges. Since the "migration hump" peaks at an average income of 6000 to 10 000 USD, economic progress in developing countries is often assumed to increase migration consistently. However, it is poorly understood to what extend country-level characteristics, individual incomes and other dimensions of development evoke this pattern, which limits its value for causal inference and concrete policy advice. In this paper we focus on the role of economic growth and investigate whether in developing countries emigration indeed increases with economic progress at shorter more policy-relevant time periods of up to 10 years. Using 35 years of data on migration flows to OECD destinations, we successfully reproduce the hump-shape in the cross-section. However, our more rigorous fixed effects panel estimations that exploit the variation over time robustly feature contrasting results: emigration rates fall as incomes increase. This finding holds independent of the level of income a country starts out at. In contrast to prevailing development emigration narratives, our results imply that rising individual incomes discourage emigration and hence conducive economic policies can reduce emigration. Our findings do not rule out that other slow-moving development dimensions such as educational advancement, demographic change, and structural economic transformation could still increase migration in the long term. [ABSTRACT FROM AUTHOR]

• Mexicós labor share fell from 1990 to 2015 because of reductions in formal sectors. • Stagnant productivity in the self-employment sectors held real formal wages back. • With formal wages anchored, formal productivity gains accrued to profits. • Slow economic growth had a crucial role in the decline of the labor share. • A remaining puzzle is why a rising profit share failed to stimulate growth. The paper studies the decline of the labor income share (LIS) in Mexico during the period 1990–2015. The decline is mostly explained by reductions within the economy's major sectors (including manufacturing, tradables, and non-tradables) rather than by a recomposition of value added towards sectors with low labor shares. In contrast to agriculture—where LIS fell due to a shift of labor force from self-employment to wage-employment—in other major areas of the economy the fall in LIS is explained by reductions within the wage-employment sector. Econometric estimations indicate that parallel declines in the wage share and relative productivity of non-tradables and in the US manufacturing labor share all played a large role in the reduction of the manufacturing wage share in Mexico. More generally, the analysis suggests that the lagging productivity of the economy's informal non-tradable sector—itself a reflection of the country's low aggregate rate of economic growth—is a crucial factor in the fall of LIS in the formal sectors. The paper concludes by discussing possible explanations for the paradox of the slow rate of economic growth in Mexico despite the rise in the profit share. [ABSTRACT FROM AUTHOR]

This paper develops a new vent-for-surplus model to analyze Southeast Asia's two phases of rapid export-led growth. During the first, from 1870 to 1929, international trade provided the 'vent' to utilize frontier land and labour surpluses in the production of primary commodities. Intra-regional exchange both allowed and created specialization. Four commodities— rice, rubber, tin and sugar — accounted for most exports. A second growth phase from 1970 depended on exporting manufactures and vented surplus labour through trade or its substitute of emigration. Western markets and regional integration again drove growth, transforming Southeast Asian countries from agricultural to predominantly industrial. This time, Southeast Asian development depended on integration with markets in the West but, crucially, also on supply chains within the region to enable specialization. By giving scope for consumer preferences and regional integration, the model can better explain the realities of Southeast Asia's growth and extreme specialization. In both phases, trade served as the growth engine, but in neither was technical change the chief expansionary source. [ABSTRACT FROM AUTHOR]

Environmental degradation and economic development are two of the most pressing issues facing the world today, and public policy that aims to address one of these may unintentionally affect the other. I study the effect of an increase in environmental law enforcement on local economic conditions in rural Brazil. In the first part of this paper, I use data on more targeted anti-deforestation law enforcement activities, guided by satellite alerts, and link that to local forest conversion. I then exploit the staggered introduction of a policy that increases monitoring and enforcement in municipalities with a history of high deforestation, and link this to a range of economic development outcomes. I find that more targeted law enforcement reduces conversion rates of forest to farm land. Furthermore, economic conditions in municipalities with stricter monitoring improve, indicating that environmental enforcement and economic development need not be at odds. • Targeted law enforcement in Amazon Biome of Brazil reduces deforestation. • Economic conditions in municipalities with stricter deforestation-monitoring improve. • GDP per capita is higher, and number of recipients of income support lower in targeted municipalities. • Environmental enforcement and economic development need not be at odds. [ABSTRACT FROM AUTHOR]

• The study provides a new conceptual framework to account for pro-poor economic development. • This is achieved by extending political settlements analysis with a critical investigation of growth–poverty linkages. • We apply this framework to the recent trajectories of Laos and Rwanda. • We show to what extent Laos and Rwanda have implemented pro-poor development strategies and how they have done so. • This is the first comparative study of the political economy of Laos and Rwanda. Political settlements analysis is a framework that helps us understand different development trajectories. While it has been used to study the politics of pro-poor growth, there has been little explicit engagement with the economic mechanisms that may alleviate or reproduce poverty. This article extends the political settlements approach to that effect and presents a new, integrated framework to account for pro-poor economic development by conceptualizing political conditions as well as key mechanisms – employment and social provision – linking growth and poverty. This framework is empirically applied to scrutinize two recent development 'success stories', those of Laos and Rwanda. Both countries have emerged from a violent past to record over two decades of fast economic growth. The paper assesses how they have done so and to what extent their development strategies have been pro-poor. We demonstrate that the combination of economic growth and of centralized and ideologically committed ruling coalitions has enabled large-scale investments in social service provision that have spearheaded significant reductions in multidimensional poverty in Laos and Rwanda. Moreover, key governance capabilities have enabled both countries to achieve a certain degree of structural change. Yet, this change has been misdirected to extractive industries and hydropower (Laos) and high-end services (Rwanda) with weak employment and limited forward and backward linkages, compounded by a relative lack of productivity growth in the historically more relevant agricultural and manufacturing sectors. This has intensified land pressures and vulnerability, leading to increased inequality in Laos and sustaining already high levels of inequality in Rwanda. Using the ambitious conception of pro-poor development that underpins our integrated framework, we problematize these growth trajectories and argue that neither of them has been pro-poor. We recommend that researchers advance political settlements analysis to examine and strengthen the possibilities for social justice-oriented and bottom-up pro-poor development strategies more systematically. [ABSTRACT FROM AUTHOR]

• Over 130 countries have produced national development plans to show their priorities for achieving SDGs. • Many of the plans are a product of national consensus processes although some are produced mainly technocratic elites. • The five year (medium term) plan is the most popular although some countries have longer term visions documents. • National Planning Commissions are back and play a lead role although Economic Ministries still dominate the process. • A majority of national plans lack financing strategies a factor that can affect implementation and achievement of SDGs. The number of countries with a national development plan has more than doubled, from about 62 in 2006 to 134 in 2018. More than 80 per cent of the global population now lives in a country with a national development plan of one form or another. This is a stunning recovery of a practice that had been discredited in the 1980s and 1990s as a relic of directed economies and state-led development. Several factors have fostered this re-emergence but from about 2015 the momentum for producing plans has accelerated, driven in part by a need to plan for the Sustainable Development Goals (SDGs). Based on an analysis of 107 national development plans, and drawing insights from 10 case study countries, this paper analyses 'new' national development planning and identifies the types and content of the plans, and their implications for the sustainable development agenda. The paper generates a typology of the new national plans, analyses their characteristics and explores the ways in which the new national development planning and the SDGs may interact. The study finds greater ownership and political control of the processes leading to plan production. It also finds that the plans vary in terms of the evidence used, the degree of internal consistency between different parts of the same plan, the process of developing the plan (inclusive or elite-driven), and the extent to which they are clear on how they will be financed. In contrast to 20th-century national development plans the new-generation plans are often underpinned by theories of collaborative rationality rather than by linear rationality. This new generation of national plans has been neglected by academic researchers and merits much greater examination, especially to understand the ways in which their implementation can enhance the achievement of the SDGs. [ABSTRACT FROM AUTHOR]

Highlights • The paper employs newly constructed structural reform indexes that focus on reforms "genuinely" implemented. • Reforms under consideration increase productivity growth, with real sector reforms having the most sizeable effects. • The pace of reforms matters since being a "strong reformer" is associated with clear productivity dividends. • The relationship between reforms and productivity is nonlinear and shaped by certain firms' characteristics. • There are complementary effects between reforms except for trade and financial reforms. Abstract This paper assesses the effects of selected structural reforms on labor productivity growth for 37 developing countries over the 2006–14 period. It combines newly constructed reform indexes using the IMF Monitoring of Fund Arrangements dataset and firm-level productivity from the World Bank Enterprise Surveys. The paper highlights the following results. Structural reforms under consideration in this study, i.e., financial, fiscal, real sector, and trade reforms, significantly improve productivity at the firm level. Interestingly, real sector reforms have the most sizeable effects on firms' productivity. The relationship between reforms and productivity is nonlinear and shaped by certain firms' characteristics, including financial access, a distortionary environment, and firms' size. The pace of reforms matters since being a "strong reformer" is associated with a clear productivity dividend for firms. Finally, except for financial and trade reforms, all macroeconomic reforms considered are bilaterally complementary in improving firms' productivity. The findings are robust to several sensitivity checks including alternatives measure of productivity, and a counterfactual experiment based on unsuccessful reforms. [ABSTRACT FROM AUTHOR]

Highlights • International government borrowing from multilateral development banks is countercyclical. • International government borrowing from private sector lenders is procyclical. • There are regional differences in the countercyclicality of multilateral lending. • Regional development banks are now less countercyclical than what they used to be. • Changes in rating methodologies may have affected the cyclicality of lending by regional development banks. Abstract The paper shows that international government borrowing from multilateral development banks is countercyclical while international government borrowing from private sector lenders is procyclical. The countercyclicality of multilateral development bank (MDB) lending is mostly driven by the behavior of the World Bank (borrowing from regional development banks tends to be acyclical). The paper also shows that MDB lending to Latin America and East Asia is more countercyclical than MDB lending to other regions. Private sector lending is instead procyclical in all developing regions. While the cyclicality of MDB lending does not depend on domestic or international conditions, private lending becomes particularly procyclical in periods of limited global capital flows. By focusing on both borrower and lender heterogeneity, the paper shows that the cyclical properties of international government debt are mostly driven by credit supply shocks. Demand factors appear to be less important drivers of procyclical international government borrowing. The focus on supply and demand factors is different from the traditional push and pull classification, as push and pull factors could affect both the demand and the supply of international government debt. [ABSTRACT FROM AUTHOR]

Public Works (PW) programs are popular development interventions due to their potential ‘double dividend’ of transferring income to the poor while at the same time creating public infrastructure. However, PW programs are costly and demanding from an administrative perspective and it is not clear whether they are the most cost-effective intervention to reduce poverty. Therefore, an assessment of PW programs needs to understand which benefits and costs these programs entail relative to other interventions, and whether or not the extra cost can be outweighed by generating benefits over and above those of alternative interventions, such as Cash Transfer programs. This paper seeks to identify these benefits, and develops a conceptual framework that highlights four mechanisms through which PW programs could strengthen the productive capacity of poor households beyond the effects of Cash Transfers: productive investments, labor market effects, skills development, and increases in trade and production. It then reviews available empirical evidence from PW programs in developing countries. The results suggest that PW programs can induce productive investments via income and insurance effects when the program is sufficiently reliable and long-term. PW programs can also have positive welfare effects by raising wages, but potential adverse effects on labor markets have to be taken into account. Implicit or explicit training components of PW programs do not seem to increase the employability or business earnings of participants. Finally, there is only scant empirical evidence on the productive effects of the public infrastructure generated by PW programs, and further research is crucial to understand and quantify those effects. This paper concludes that PW programs are only preferable over alternative interventions if they generate substantial investments among the target group, if there is clear evidence that private-sector wages are below equilibrium wages, or if the public infrastructure generated in PW programs has substantial growth effects. [ABSTRACT FROM AUTHOR]

Between 1996 and 2014, 30 Sub-Saharan African (SSA) countries benefited from debt relief under the Heavily Indebted Poor Countries (HIPC) initiative and the Multilateral Debt Relief Initiative (MDRI). The architects of the HIPC initiative and MDRI posited that these programs would spur growth and investment. This paper exploits the variability of participation in the HIPC initiative and MDRI across time and country, in order to identity the effect of participation on growth and investment. I find that the decision point and post-completion point periods of the enhanced HIPC initiative are associated with a 1.762 percentage point and 3.139 percentage point increase in public investment, respectively. The impact is higher in countries with low access to international capital markets. The enhanced HIPC initiative increases private investment by 1.838 percentage points during the post-completion point period in countries with low access to international capital, for approximately two years, but has no effect on growth or foreign direct investment. I find no effect of the original HIPC initiative or MDRI on growth, private investment, public investment or foreign direct investment. I find no heterogeneous impact of the enhanced HIPC initiative on growth and foreign direct investment by level of indebtedness, access to international capital markets, or institutional quality. As the measures of institutional quality have barely changed between 1996 and 2014 in HIPC countries, the results of this paper suggest that without a strong improvement in institutional quality, debt relief is unlikely to boost investment and growth in Africa. Possible future debt relief in SSA countries should be associated with a component directly aimed at improving institutional quality. If an improvement of institutional quality is not feasible in the short run, debt relief in SSA countries should aim to support public investment. [ABSTRACT FROM AUTHOR]

Summary Recent literatures examine the short-run effects of natural disasters on household welfare and health outcomes. However, less advancement has been observed in the use of self-reported data to capture the short-run disaster–development nexus in least developed countries’ with high climatic risks. This self-identification in the questionnaire could be advantageous to capture the disaster impacts on households more precisely when compared to index-based identifications based on geographical exposure. In this paper, we ask: “what are the impacts on household income, expenditure, asset, and labor market outcomes of recurrent flooding in Bangladesh?” We examine the short-run economic impacts of recurrent flooding on Bangladeshi households surveyed in year 2010. In 2010 Household Income and Expenditure Survey (HIES), households answered a set of questions on whether they were affected by flood and its likely impacts. We identify treatment (affected) groups using two measures of disaster risk exposure; the self-reported flood hazard data, and historical rainfall data-based flood risk index. The paper directly compares the impacts of climatic disaster (i.e., recurrent flooding) on economic development. We further examine these impacts by pooling the data for the years’ 2000, 2005, and 2010 and compare the results with our benchmark estimations. Overall, we find robust evidence of negative impacts on agricultural income and expenditure. Intriguingly, the self-reported treatment group experienced significant positive impacts on crop income. [ABSTRACT FROM AUTHOR]

Summary An extensive literature exists on the adverse effects of corruption on inward FDI and the impact this may have on economic development but the reverse causality has not been fully explored. Legislation in the US and the EU prohibits firms from engaging in corrupt practices in foreign countries and this suggests that foreign-owned firms might be less likely to pay bribes. However, such legislation may be ineffective because foreign firms have to adapt to local market conditions or risk being uncompetitive. Using firm-level data for 41 emerging countries, a probit model estimates the probability that a firm pays bribes. To allow for possible endogeneity this probit analysis is repeated with an instrument to proxy for endogenous foreign ownership. Then, a propensity score matching technique tests for differences in the propensity to pay bribes by domestic and foreign firms. The paper finds no difference in the behavior of foreign-owned and domestic firms with respect to corrupt practices. Results are robust to different levels of foreign ownership and support the view that foreign-owned firms adapt to local practices and are neither more nor less likely to pay bribes than comparable domestic firms. The paper finds that other variables including bureaucracy, government contracts, and perceived difficulties with civil society (legal and political) do have statistically significant effects on increasing bribery and that some others, such as per capita GDP, tend to reduce bribery. The study concludes that there is no evidence that foreign ownership, after investment has occurred, tends to reduce bribery but it does support the view that foreign-owned firms adopt local behavioral norms. [ABSTRACT FROM AUTHOR]

• People of Bramfischerville strongly support participation in local development, despite being aware of its transaction costs. • Support is higher for more inclusive and interactive participation, i.e., processes which invite all residents to discuss priorities and needs. • People's support is context-specific. In our study, they are shaped by infrastructural preconditions and people's relationship with the state. • This study builds on a context-sensitive and mixed methods research design, combining a survey experiment with qualitative group interviews. • We contribute to theoretical discussions on participation as well as to the yet scarce experience with survey experiments in the Global South. Public participation in local development is an integral part of democratic agendas across the world. Yet not much research specifically focuses on people's perspectives of participation, especially among underprivileged populations. Gaining a better understanding of people's support for public participation is, however, important as it may inform people's interest in future engagements with the state for local development. This paper contributes to the extensive interdisciplinary literature on public participation in local development by taking a people-centric view. Drawing on an original face-to-face vignette survey experiment (n = 502) and group interviews in Bramfischerville, a low-income residential area in Johannesburg, we examine whether people generally support public participation in local development and explore how different design features of participatory processes inform public support for participation. Overall, our mixed methods study reveals strong support for public participation, with higher support levels for more inclusive and interactive forms, meaning processes, which are open to all residents and where participants are invited to discuss priorities and needs. This, despite people's awareness of the transaction costs of participation, such as time and energy. Moreover, we find that people's support for participation is influenced by their experiences and satisfaction with infrastructure provision. These findings underline the importance of understanding the specificities of the given socio-economic context and people's everyday lived realities. It also draws attention to people's relationship with the state, as the main provider of this infrastructure. Therefore, a context-sensitive interpretation of people's infrastructural preconditions and their relationship with the state are necessary to understand their attitudes towards participation and, more generally, for advancing participatory governance in the given context and beyond. [ABSTRACT FROM AUTHOR]

Summary When it comes to the state’s ability to deliver services to the poor, politics matter. This paper applies a political settlements framework to examine primary education quality in Rwanda. Formal education features prominently into the post-genocide government’s social and economic development project. Rwanda’s political elite have staked their claim in the development of the country, one which is relatively free from rent-seeking. But education quality remains surprisingly low. Enrollment has surged, but primary school dropout and repetition are high. Most children have not acquired age-appropriate literacy or numeracy skills. We sought to investigate why the education sector hasn’t done better in terms of improving quality than we might have expected. This paper draws from interviews and literature review to investigate how policy development and implementation shape the provision of quality education. Our study finds that education priorities were as much political as they were developmental. A lack of real opposition or pushback enabled the government to introduce profoundly transformative educational policies, such as switching the language of instruction from French to English. Often these decisions occurred outside the sector’s strategic planning processes. Performance-based incentives tended to focus on aspects of quality that are measurable, such as the construction of classrooms, rather than improving the capacity of the teaching workforce. We did not find evidence of an effective, sustained strategy to improve education quality. It is thus debatable to what extent Rwanda’s approach can be considered as inclusive development when quality for most children remains so low. This study makes an empirical contribution through evaluating how the education sector has been situated within Rwanda’s broader political settlement, what kinds of outcomes it has led to, and why. It also makes a theoretical contribution by understanding the nature of the relationship between the national political settlement and the education sector. [ABSTRACT FROM AUTHOR]

Summary The lessening of hunger is central to the development agenda; however, there is little research on how it ends up impacting on people’s experience of being well. Research on this impact is crucial for the design of hunger alleviation programs as well as for the measurement and understanding of hunger. It is also important to understand people’s motivation and reaction to interventions. This paper studies the impact of hunger on four different experiences of being well: evaluative, positive affects, negative affects, and sensory. The paper distinguishes between absolute and relative effects of hunger on people’s well-being. Information from the Gallup World Poll 2006 for 88 countries in the world is used to quantitatively study the well-being relevance of hunger. It is found that hunger is highly detrimental to people’s well-being, which provides a justification for making substantial efforts to alleviate it. In addition, relative effects are important in the evaluative and negative-affect experiences; which means that hunger alleviation programs do not only impact positively on the well-being of those benefiting from the programs but also negatively on the well-being of those who—out of different reasons—are left behind. Thus, counting success on the number of people who are getting out of hunger does not provide the complete well-being picture, because those who are left behind may also be negatively affected by these programs. In consequence, in order to enhance their well-being impact it is important for hunger alleviation programs to be broadly inclusive, aiming not to leave anybody behind. [ABSTRACT FROM AUTHOR]

Summary This paper pursues an inquiry into the relationship between ethnicity and development in the largest authoritarian country in the contemporary world, the People’s Republic of China. It engages the theoretical literature on ethnic diversity and development in general, but also pays special attention to political economy logics unique to authoritarian systems. Focusing on the western part of China over a decade since the launch of China’s Western Development Program ( xibu da kaifa ) in 2000, this paper utilizes the data from two censuses (2000 and 2010) together with nighttime streetlight imagery data to analyze the overall relationship between ethnicity and development provision. It also analyzes changes in such a relationship during this period. The paper finds that ethnic minority concentration negatively correlates with economic development in both the years 2000 and 2010 across the western provinces. It also finds that counties in non-autonomous provinces, which are historically more integrated with the rest of China than autonomous provinces, have a positive and systematic correlation between changes in ethnic minority concentration and changes in development during the 10-year period. The counties in autonomous provinces, on the other hand, show the opposite trend. Using three case studies of Tibet, Inner Mongolia, and Xinjiang, the paper concludes that although there is in general a tendency for ethnic minority concentrated areas to be less developed, ultimately which groups prosper more or less depends upon specific economic development and which political control logics the Chinese state implements. [ABSTRACT FROM AUTHOR]

Summary This paper elaborates on critical processes of institutional change and the implications for local economic development in fragile settings. Drawing on empirical research in Afghanistan, the discussion looks specifically at how local actors interact to reshape the “rules of the game” in women’s enterprise. The research has highlighted diverse actor negotiation in the transformation of (heterogeneous) purdah norms and development of enterprise institutions. This has crucially influenced the scope of norm development, and women’s engagement in business. The study shows that external actors (such as NGOs) may be able to both initiate and guide institutional change and development. Yet in challenging environments such as Afghanistan, there may be limitations to their endeavors, with strong resistance from local power holders, unpredictable entrepreneurs and disruptive (local) events. The use of liberal cultural/religious narratives has proved fundamental in permitting change processes. Emerging open-minded beliefs have unleashed a more democratic “narrative” on women, particularly if championed by progressive leaders, or credible outsiders in “receptive” local conditions. This has led to the evolution of new attitudes and preferences, with potential effects beyond the market, including increasing girls’ education and women’s property rights. The research has generated a micro-social perspective of institutional change, identifying key actors and conditions that may shape grassroots institutional processes in enterprise development. In emerging outcomes, the paper presents insights into the role of dominant entrepreneurs in driving (nested) institutional pathways. This may promote inclusive opportunities for (new) power and wealth through open institutions, in “productive institutional pathways.” Yet it can equally foster distorted economies if exclusive institutions are allowed to prevail in more “destructive institutional pathways.” To further develop micro-institutional theory, the paper argues for a greater appreciation of culture, religion, and fragility. [ABSTRACT FROM AUTHOR]

Summary What accounts for variation in human development levels across similar communities? Why, for example, have some equally poor, indigenous, highland communities in Guatemala made advances in health and education while others have stagnated or regressed? This paper argues that, contrary to an emerging recognition of the role of “ordinary citizens” in peacebuilding or crime reduction, human development requires the complementarity of non-state leaders and government resources. Results are demonstrated through a quantitative analysis of all of Guatemala’s 334 municipalities, combined with a qualitative analysis, including over 250 key informant interviews and focus group participants from four paired communities throughout the Western Highlands, which effectively traces the implementation of a widely acclaimed government anti-hunger program. This paper underscores the variability in local governance present across short distances in Guatemala, with dramatic influence on local development outcomes. In most communities, the role of traditional leaders and other non-state actors is increasingly crowded out by political conflicts exacerbated by growing, and shifting political party and religious affiliations. In these instances, development governance has broken down and development resources are distributed along locally derived lines of patronage versus need. Elsewhere, however, where state actors have identified and incorporated the legitimacy, informal authority, and networks of traditional leaders at the village level, the implementation of the anti-hunger program is visibly more effective. The role of local, informal leaders is pivotal in legitimizing the program, mobilizing citizen participation, and overseeing more equitable distribution of key resources. The paper concludes with an exploration of what explains variation in the quality of local governance across space and its implications for development practice. [ABSTRACT FROM AUTHOR]

Summary Following a precise evaluation protocol that was applied to a pool of 202 articles published between 2003 and 2014, this paper evaluates the existing evidence of how and to what extent capture fisheries and aquaculture contribute to improving nutrition, food security, and economic growth in developing and emergent countries. In doing so we evaluate the quality and scientific rigor of that evidence, identify the key conclusions that emerge from the literature, and assess whether these conclusions are consistent across the sources. The results of the assessment show that while some specific topics are consistently and rigorously documented, thus substantiating some of the claims found in the literature, other areas of research still lack the level of disaggregated data or an appropriate methodology to reach consistency and robust conclusions. More specifically, the analysis reveals that while fish contributes undeniably to nutrition and food security, the links between fisheries/aquaculture and poverty alleviation are complex and still unclear. In particular national and household level studies on fisheries’ contributions to poverty alleviation lack good conceptual models and produce inconsistent results. For aquaculture, national and household studies tend to focus on export value chains and use diverse approaches. They suggest some degree of poverty alleviation and possibly other positive outcomes for adopters, but these outcomes also depend on the small-scale farming contexts and on whether adoption was emergent or due to development assistance interventions. Impacts of fish trade on food security and poverty alleviation are ambiguous and confounded by a focus on international trade and a lack of consistent methods. The influences of major drivers (decentralization, climate change, demographic transition) are still insufficiently documented and therefore poorly understood. Finally the evaluation reveals that evidence-based research and policy narratives are often disconnected, with some of the strongest and long-lasting policy narratives lacking any strong and rigorous evidence-based validation. Building on these different results, this paper identifies six key gaps facing policy-makers, development practitioners, and researchers. [ABSTRACT FROM AUTHOR]

One of the challenges of participatory development and reconstruction programs is how and where to engage with power holders. This paper analyses the dynamics of power relations within a community-driven reconstruction program in the Democratic Republic of Congo. It shows that, in some circumstances, elite control can be a way of ensuring the provision of pubic goods and that conflict between elites can benefit project outcomes. The paper concludes that in this and similar contexts, development programs should consider bringing elites into the equation of governance and invest in understanding better the working and accountability of existing institutions for development. [ABSTRACT FROM AUTHOR]

Summary This paper surveys the literature which examines the effect of education on economic growth. Specifically, we apply meta-regression analysis to 57 studies with 989 estimates and show that there is substantial publication selection bias toward a positive impact of education on growth. Once we account for this, the genuine growth effect of education is not homogeneous across studies, but varies according to several factors. Specifically, it is attributed to differences in education measurement and study characteristics, mainly model specification as well as type of data used, and the quality of research outlets where studies are published, e.g., academic journals vs. working papers. [ABSTRACT FROM AUTHOR]

• Low renewable groundwater use in Sub Saharan Africa (SSA) constrains development. • Poverty, demographic changes and shock events make groundwater development urgent. • An empirical model shows political economy factors trigger groundwater development. • A global discourse of caution inadvertently hinders groundwater development in SSA. • A groundwater boom is key to irrigation, water security and drought resilience. Unlike many global regions, Sub-Saharan Africa (SSA) has yet to undergo a groundwater revolution. In this paper we confirm that for most SSA countries current groundwater use remains under 5% of national sustainable yield. This is likely to be a constraint on wider economic development and on addressing vulnerabilities to climate change and other shocks. Groundwater use has supported the process of economic structural change in other global regions; hence we derive an empirical model for groundwater use to support economic development, comprising trigger, boom and maturation phases. We identify that the trigger phase depends on political and economic ('secondary') factors, in addition to resource characteristics. The boom phase is described as 'semi anarchic', while the maturation phase is characterized by slowing abstractions but continued economic benefits. In SSA, we posit that the predominance of limiting secondary factors, coupled with a discourse of caution and focus on the maturation phase (more appropriate for other regions), is constraining the use of groundwater for economic development. We suggest that groundwater has the potential to be a foundational resource to support irrigated agriculture, urban and rural water security, and drought resilience across the region, as it has in many other global regions. We argue that overcoming the current barriers and costs to groundwater development can be offset by the benefits of regional socioeconomic development and increased resilience. In the context of enduring poverty and recurrent humanitarian crises in SSA, this new synthesis of information suggests that such an underutilization of sustainable groundwater is unjustifiable. Stakeholders active in the region should prioritize groundwater development to help facilitate a transition to higher value-added activities and greater regional prosperity and resilience, and ensure that measures are put in place for this to be done sustainably. We conclude with some ideas to help trigger such development in SSA. [ABSTRACT FROM AUTHOR]

Summary: This paper investigates the empirical relationship between ethnic diversity, polarization, and economic growth. Ethnicity is assumed to affect economic growth through a number of possible transmission channels that are generally included in cross-country growth regressions. This paper provides an extensive empirical analysis shedding light on the various sources through which ethnic diversity and polarization affects economic growth indirectly. It advances and empirically establishes the hypothesis that ethnic diversity has a strong direct negative impact on economic growth, whereas ethnic polarization has non-negligible indirect economic effects through the specified channel variables. [Copyright &y& Elsevier]

Summary: This paper constructs an efficiency-adjusted public capital stock series and re-examines the public capital and growth relationship. The paper also examines the effects of four specific stages of the public investment process—appraisal, selection, implementation and evaluation—on capital accumulation and growth. The results show that public capital is a significant contributor to economic growth. The quality of public investment, as measured by variables capturing the adequacy of project selection and implementation, is statistically significant in explaining variations in economic growth, a result mainly driven by low-income countries. [ABSTRACT FROM AUTHOR]

Summary: “Selling success” is crucial in conservation and development. Solutions, ideas, projects, and people must actively be constructed as valuable to get donors and policy-makers to buy (into) them. Exactly how success “travels” and becomes capital, however, is not often explicated. Using a southern African conservation and development intervention, the paper compares “positive translation” along the project’s accountability chain with the broader circulation of positive references to the project’s payments for ecosystem services initiative. While both illuminate the construction of value in conservation and development, the paper concludes that a neoliberal context increasingly emphasizes the latter tactic of “epistemic circulation”. [ABSTRACT FROM AUTHOR]

Summary: This paper discusses how regime type and state capacity may interact in affecting economic growth. The empirical analysis finds a positive and robust effect of democracy on growth in Sub-Saharan Africa, a continent historically characterized by weak-capacity states. Furthermore, the paper identifies a robust interaction effect between democracy and state capacity on growth, both in Africa and globally; the effect of democracy on growth increases when state capacity is reduced. Democracy is estimated to have a positive effect on growth in weak-capacity states, but not in high-capacity states. Additionally, the results indicate that state capacity enhances growth only in dictatorships. [Copyright &y& Elsevier]

Summary: This paper investigates the impact of foreign labor on domestic manufacturing wages through a case study of Malaysia, a country where foreign labor has played a key role in manufacturing growth over the past two decades. The main focus of the paper is on an econometric analysis of the determinants of inter-industry variation in wage growth using a new panel dataset. The results suggest that wage growth is fundamentally embedded in the structure and performance of domestic manufacturing. There is evidence of a statistically significant negative impact of foreign labor on the growth of unskilled-worker wages, but the magnitude of the impact is rather small. [ABSTRACT FROM AUTHOR]

Summary: This paper attempts to quantify the impact of fiscal decentralization in India on its social infrastructure and on rural development. Overall, the results in this paper indicate that Government of India within a federal framework has been fostering development equitably across its states, particularly through health and education expenditures aimed at improving human capital development. In this context, the importance of the two tier centre-states decentralization should be noted. However, the third tier of local governance, particularly the state-rural local bodies decentralization has been dismal and has not achieved significant results across states, which warrant the attention of the central and state governments. [ABSTRACT FROM AUTHOR]

Summary: This paper argues that the distribution of global poverty has changed and that most of the world’s poor no longer live in countries officially classified as low-income countries (LICs). It is estimated that the majority of the world’s poor, or up to a billion people, live in middle-income countries (MICs). This pattern is largely as a result of the recent graduation into the MIC category of a number of populous countries. The paper discusses the trends in the distribution of global poverty, and opens a wider discussion on the potential implications for aid and development cooperation. [Copyright &y& Elsevier]

Summary: The paper examines the extent to which emerging social transfer programs in developing countries can improve the productive capacity of households in poverty and contribute to micro-level growth. It introduces a basic framework linking transfers to growth mediating processes and productive capacity outcomes. This is then used to organize and assess relevant findings from program evaluation studies. The paper concludes that social transfer programs can have positive effects on the productive capacity of poor and poorest groups; but further research is needed to identify and measure the size and significance of these effects. [ABSTRACT FROM AUTHOR]

• Positive outliers are valuable as they show how progress occurs against the odds. • Researchers have largely relied on experts to identify positive outliers. • By relying on experts, less well known positive outliers have been overlooked. • A 3-stage methodology promises to uncover 'hidden' cases of developmental progress. • The methodology is used to identify under recognised cases of bribery reduction. Increasingly, development scholars and practitioners are reaching for exceptional examples of positive change to better understand how developmental progress occurs. These positive outlying cases are often referred to as 'positive exceptions', but also 'positive deviants' and 'pockets of effectiveness'. Studies in this literature promise to identify and examine positive developmental change occurring in otherwise poorly governed states. However, to identify success stories, such research largely relies on the reputations of cases, and, by doing so, overlooks cases that have not garnered a reputation for their developmental progress. This paper presents a novel three-stage methodology for identifying and examining positive outlier cases that does not rely solely on reputations. It therefore promises to uncover 'hidden' cases of developmental progress as well as those that have been recognized. The utility of the methodology is demonstrated through its use in uncovering two case studies in which surprising rates of bribery reduction occurred, though the methodology has much broader applicability. The advantage of the methodology is validated by the fact that, in both cases identified, the reductions in bribery that occurred were previously unrecognized. [ABSTRACT FROM AUTHOR]

• We developed a comprehensive and spatially disaggregated typology to identify and locate major food security bottlenecks. • The typology is conceptually sound, operationally flexible, and less data intensive. • Intervention types and levels of production, access, and utilization efficiency were identified for rural areas in the DRC. • The efficiency profile of nine high-priority territories was discussed in more detail using secondary data. • The proposed approach can be adjusted to fit the conditions of most developing countries. In this paper we develop a typology to help design and improve spatial targeting of food and nutrition security (FNS) interventions. Using a comprehensive framework, the proposed approach allows for the broad identification and location of major food security bottlenecks. The resulting typology is based on an amendable demarcation of areas in a four-indicator diagram representing the four core dimensions of FNS. The proposed typology is applied to the rural territories of the Democratic Republic of the Congo (DRC). Despite a continuum of heterogenous development challenges across the country, the typology helps identify clusters of territories that suffer from production, access, and utilization constraints. For the nine territories (out of 145) with the highest child stunting levels, we identify four broad intervention zones and analyze their efficiency profile in more detail. Despite its reductionist nature, our typology is conceptually sound, operationally flexible, and less data intensive, important features to promote evidence-based policymaking in contexts characterized by imperfect and scarce data. [ABSTRACT FROM AUTHOR]

Highlights • Policy assessment method based on panel data was used to analyze the effect of CRP. • The DRP contributed to the increase in public transport volume, the LPRP did not. • The DRP has no significant effect on the improvement of traffic mode split. • The effect of CRP is short-term and can not effectively alleviate traffic problems. Abstract Traffic problems caused by the rapid growth of motor vehicle ownership have become an increasingly serious concern. Many cities have developed car restriction policies to relieve traffic pressure. Car restriction policies mainly refer to traffic policies used to restrict car usage and to control the growth of vehicle ownership. These policies include driving restriction policies for restricting car driving and the license plate restriction policies for limiting vehicle purchases. In this paper, the policy effectiveness evaluation method based on panel data was used to analyze the effect of car restriction policies on public transport development. The influence of a driving restriction policy, a license plate restriction policy, and a dual policy implementing the two on the development of public transport was analyzed for six cities in China. We found that the driving restriction policy increased public transport passenger volume by 5–25%, the license plate restriction policy had no significant effect, and the dual policy increased the volume of public transport by 20–30%. Notably, the integrated policy enlarged the policy effect. However, because the car restriction policy had no significant impact on the proportion of public transport, these types of restriction policies cannot radically improve the traffic mode split. That is, car restriction policies can merely serve as a kind of emergency measure, rather than solving the traffic problems at the source. Only by improving the planning of urban roads, increasing the public transport infrastructure and increasing residents' acceptance of public transport can the traffic mode split be fundamentally improved. [ABSTRACT FROM AUTHOR]

Highlights • Poverty convergence remains absent across Less Developed Countries (LDCs) during 1980–2014. • In contrast, there exists strong poverty convergence across Sub-Saharan African (SSA) economies during the same period. • Poverty convergence is absent across LDCs because initial poverty weakens the effectiveness of growth in reducing poverty. • Strong growth effect dominating adverse initial poverty effect on growth effectiveness explains poverty convergence in SSA. • This study finds no direct link between higher initial poverty and slower subsequent growth identified in Ravallion (2012). Abstract The literature on poverty convergence is sparse and much of the empirical evidence relies on Ravallion (2012) who found a lack of poverty convergence across some ninety Less Developed Countries (LDCs) during 1980–2007. This paper revisits cross-country poverty convergence using data from the same sources but an extended period of 1980–2014. We find that while poverty convergence remains absent across LDCs, it is present in Sub-Saharan Africa (SSA) during the extended period. Initial poverty canceling the effectiveness of growth in reducing poverty explains the lack of poverty convergence across LDCs; while a strong growth effect dominating the adverse effect of initial poverty on growth effectiveness explains the strong poverty convergence found in SSA. A direct adverse link between initial poverty and subsequent growth – which Ravallion (2012) recognized as the main impediment to poverty convergence during 1980–2007 – is not found in this study. [ABSTRACT FROM AUTHOR]

Highlights • We use dynamic panel regression analysis for 70 countries from 1965–2009. • We find that patent rights have no effect on productivity growth. • We offer an alternative explanation, finding the ECI positive and significant. • Our results lend evidence that patent rights are insufficient for the inducement of productivity. • We argue it is not discovery that increases productivity, but the ability to adapt. Abstract Does the rigorous protection of patents advance or retard economic development? Two decades ago, a new global standard of intellectual property swept across developing and industrialized nations through the implementation of the WTO's TRIPS Agreement. Many years later, the issue of patent rights remains contentious. In this paper, we focus on the effects of patent rights systems on total factor productivity growth, using dynamic panel regression analysis for 70 countries from 1965 to 2009. We show that the effects of stronger or more rigorous patent systems are insignificant for productivity growth in both developing and industrialized countries. Why does the strength of patents appear to have no impact on productivity? Classic economic theory suggests that stronger patent systems incentive innovative output with important spill-over effects for productivity and growth. We offer an alternative explanation using data from the Economic Complexity Index. We find that while patents rights are increasingly irrelevant to productivity, the relationship between economic complexity and productivity is highly positive and significant. Our results are consistent with the contributions of the absorptive capacity theory in that they suggest it is not the discovery and ownership of novel products and processes at the innovative frontier that induces productive growth, but the ability to adapt, replicate and diffuse along the international productive chain. [ABSTRACT FROM AUTHOR]

Highlights • Issues of paid and unpaid social reproductive work need to be aligned to sustain decent work agenda. • Growth indicators for SDG 8 targets neglect the value and costs of social reproduction. • Decent work agenda is unsustainable if it neglects persistent gender inequality globally (SDG 5). Abstract SDG 8 calls for promoting 'sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all'. Even as it highlights the importance of labour rights for all, it also makes visible some significant tensions. We note, for example, that despite many critiques of narrow economic measures of growth, the focus here remains on GDP and per capita growth. This is problematic, we argue, because the GDP productive boundary excludes much of social reproductive work. This puts SDG8 in tension with SDG 5 which calls for the recognition of the value of unpaid care and domestic work. There has been a significant increase in the rate of working women in the formal and informal sector. However, there has not been a subsequent gender shift in the doing of social reproductive work. In this paper we argue SDG 8's focus on decent work and economic growth is inadequate; that productive employment and decent work for all men and women by 2030 needs to take into account the value and costs of social reproduction. We trace key historical debates on work to argue that both gender and labour rights have to underpin SDG 8 if its promise of inclusive, sustainable and decent work is to be realized. [ABSTRACT FROM AUTHOR]

Highlights • The Constitution in South Africa ensures poverty is a central concern in public policy. • In a contested policy environment, cash transfers are likely to thrive. • Gender is a good lens to establish whether social and economic policy are integrated and coherent. • Social compacts between the state, labour and capital are struggling, and new models are emerging. • The role of the South African mining sector in social development is changing, but still disputed. Abstract This paper reflects on the trajectory of social policy in South Africa (1994–2017) and on which policy levers present opportunities for cross-country policy transfer, in order to address current social development challenges. The current direction of social policy is described as the result of a compromise between two distinct alternative paradigms whereby the statist transformative and market-oriented residual paradigms are held in tension. On the one hand, a transformative policy perspective draws on human rights and views redistribution as a necessary premise for and means of economic growth. On the other hand in the residual framework, redistribution is envisaged as a secondary function that is dependent on economic growth. Several instances are outlined in which this tension is evident, together with the implications for social policy across the policy cycle: in legislation; in social compact formation; in the selection of social programmes and in their implementation; in gender-mainstreaming and in the engagement of the private sector in social policy. Overall we highlight areas of hybrid policy overlap between these bifurcated ideological, political and institutional frameworks, for example around social transfers and corporate social investment. We also describe instances of conflicting and at times unexpected outcomes, such as the National Health Insurance. Several factors are concluded to be of relevance to the Global South more generally: the importance of constitutionally-legislated rights as a basis for advancing socio-economic claims; the emergence of new social compacts in contexts where there are significant levels of informal employment and unemployment and lastly, the influence of fiscal and institutional capability factors in shaping the direction of social policy and its implementation. [ABSTRACT FROM AUTHOR]

Summary: China’s state-owned banks have demonstrated a tremendous capacity for change, but their implications for development policy are often unclear. The paper examines why the pre-reform banking system based on moral compromise almost seamlessly changed to one based on self-advancement. Focusing on a period when resources were desperately short, the paper argues that China’s great advantage has been Hong Kong and the safe access to international markets it provided. Consequently China’s leadership is more familiar with international markets than is often assumed, and although capitalism is no longer exceptional, access to formal institutions continues to be a core development priority in achieving modernization. [ABSTRACT FROM AUTHOR]

Summary: This paper re-assesses the treatment of religion in development studies 30 years after the publication of a special issue of World Development on “Religion and Development”. Given the changes in the social and political context, consideration of the subject of religion can no longer be avoided. The paper identifies two implications of this for development studies. First, the assumptions of secularization and secularism that supposedly define the relationships between religion, society, and politics have to be revisited. Second, development studies must recognize that religion is dynamic and heterogeneous. Both development studies and religion are concerned with the meaning of “progress” or a “better life,” implying that attention has to be given to social and historical processes of meaning creation, requiring a shift from positivist to interpretivist research methods. The paper concludes by looking at how consideration of religion is transforming development studies. [ABSTRACT FROM AUTHOR]

Highlights • We explore households’ vulnerability from trade in Vietnam under Doi Moi. • We propose an extended version of Ligon and Schechter’s (2003) VEU measure. • We also propose an empirical application of it by using VHLSS panel data 2002–06. • We show that heterogeneity in trade exposure matters for household vulnerability. • This work deepens our knowledge on the subtle links between trade openness and vulnerability. Abstract This paper assesses vulnerability from trade in Vietnam by presenting an extended version of Ligon and Schechter’s (2003) Vulnerability as low Expected Utility (VEU) measure. It uses the Vietnam Household Living Standard Surveys (VHLSS) panel data covering the period 2002–06. The empirical results show that risk-induced vulnerability and heterogeneity in trade exposure matter in determining household overall vulnerability and that this is not linked to the actual manifestation of shocks. Although it does not represent, by any means, an argument against free trade, this work is relevant for policymaking since it contributes to deepen our knowledge on the subtle links between trade openness and vulnerability and informs us about suitable instruments to accompany it. [ABSTRACT FROM AUTHOR]

Scholars have long debated the nexus between political institutions and economic outcomes. The thesis of democratic advantage has been under careful scrutiny and empirical evidence is notoriously inconclusive. One topic that has drawn extensive scholarly attention is democratic institutions as a source of comparative advantage in international trade. Using a new data set that covers around 140 countries from 1962 to 2010, we find that on average, democratic countries have the comparative advantage in exporting differentiated products, which reflects lower transaction costs in trade and higher economic complexity. Echoing literature on electoral autocracy, we also make the distinction between different subtypes of authoritarian regimes. Similarly, authoritarian countries with electoral institutions have the comparative advantage in exporting differentiated products relative to other authoritarian countries, though the magnitude is much smaller and inconsistent over time. Our results are robust to a large set of control variables and multiple model specifications. In sum, our paper provides new insights into the relationship between democracy and trade and complements existing literature on the effect of authoritarian institutions on economic development. [ABSTRACT FROM AUTHOR]

This paper analyzes the role of real exchange rate (RER) policies in promoting economic development. Markets provide a suboptimal amount of investment in sectors characterized by learning spillovers. We show that a stable and competitive RER policy may correct for this externality and other related market failures. The resulting development of these sectors leads to overall faster economic growth. A system of effectively multiple exchange rates is required when spillovers across different tradable sectors differ. The impact of RER policies is increased when they are complemented by traditional industrial policies that increase the elasticity of the aggregate supply to the RER. Among the instruments required to implement a stable and competitive RER are interventions in the foreign exchange market and regulation of capital flows. We also discuss the trade-offs associated with alternative stable and competitive RER policies and the relationship between the use of exchange rate policies for macro-stability and for development. [ABSTRACT FROM AUTHOR]

Summary: This paper assesses the importance of agriculture poverty reduction, largely through its impact on overall economic growth, drawing on evidence from Latin America and other developing regions. The econometric evidence strongly suggests that the sector contributes to growth more than its share of GDP, certainly in Latin America but also elsewhere. Cross-country studies show that, on average in the developing world, agriculture tends to have an impact on both national growth and poverty reduction that is greater than its simple share of national GDP. The results reinforce the argument against taxing agriculture relative to other sectors and that in assigning government expenditures to public goods one should take into account the historical relationship between agricultural growth and the subsequent non-agricultural growth. The paper also considers approaches to stimulate the rural economy. [ABSTRACT FROM AUTHOR]

Summary: This paper analyzes the relationship between growth patterns, poverty, and inequality in Brazil during its globalization process, focusing on the role played by the labor market and social programs. Methodologically, the paper makes two contributions to the literature. One is the proposal of a new measure of pro-poor growth, which links growth rates in mean income and in income inequality. The other contribution is a decomposition methodology that explores linkages between three dimensions: growth patterns, labor market performances, and social policies. The proposed methodologies are then applied to the Brazilian National Household Survey covering the period 1995–2004. [Copyright &y& Elsevier]

Summary: Our paper presents a critical review of the literature on institutional change and the role of institutions in economic development. We discuss the roles and interrelationships of formal and informal institutions and introduce a collection of papers addressing this topic in a variety of development settings. [Copyright &y& Elsevier]

Summary: The objective of this paper is to provide quantitative evidence on the impacts of migrant associations on local development in rural Burkina Faso. We exploit a national retrospective community survey of 600 settlements conducted in 2002. Using longitudinal data and event-history models, we show significant effects of migrant associations on the creation of schools, health centers, and roads, while the direct effects on other facilities and on modernization of agriculture are non-significant. The paper also explores whether the impact of migrant associations varies according to the period and to some characteristics of the associations (location and age of the association). [Copyright &y& Elsevier]

Summary: This paper explores how the choice of a country’s exchange rate regime may affect exchange rate misalignment for developing and developed countries. A measure of misalignment is obtained by using a panel cointegration vector estimator. This paper finds that for developing countries, an intermediate exchange rate regime (a regime falling somewhere between a pure float and a hard peg) is most effective in preventing exchange rate misalignment. Additionally, the choice of an exchange rate regime as a means to limit misalignment matters for developing countries, but does not seem to matter for developed countries. [Copyright &y& Elsevier]

Summary: Empirical explorations of the growth and aggregate productivity impacts of infrastructure have been characterized by ambiguous (countervailing signs) results with little robustness. This paper, utilizing panel data for South African manufacturing over the 1970–2000 period, and a range of 19 infrastructure measures, explores the question of infrastructure endogeneity in output equations. The paper develops an instrumentation strategy generalizable to other contexts. Controlling for the possibility of endogeneity in the infrastructure measures renders the impact of infrastructure capital not only positive, but of economically meaningful magnitudes. [Copyright &y& Elsevier]

Summary: This paper investigates the traits of self-employed entrepreneurs in urban China, an economy rife with informational and institutional imperfections, under-developed financial markets, but a growing and important non-state sector. Despite this challenging context, this paper finds that entrepreneurs make on average 20% more than non-entrepreneurs, while being similar in age, marital status, educational attainment, and socio-economic background. Fewer are Communist Party members and more have experienced unemployment, however. Women, Party members, more educated and older workers are less likely to become entrepreneurs. Social networks, motivation and drive, and attitudes toward risk, are all significant factors associated with entrepreneurship. [Copyright &y& Elsevier]