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Using a unique panel survey of enterprises, we examine the relationship between four categories of formalization and firm productivity. We carry out one- and two-step productivity estimations whose robustness we check with matching and doubly robust estimators. The only formalization category that appears to be significantly associated with productivity is tax formalization, i.e. a firm's decision to pay taxes. This positive association only holds for firms that were already more productive and bigger before formalizing than other informal firms. The reason for the insignificance of the remaining three categories is likely to be the insignificant association between formalization and potential benefits of formalization, such as more access to credit, employees, and investments. High taxes and fees linked to formalization seem to outweigh the few to non-existent intermediate benefits of formalization. [ABSTRACT FROM AUTHOR]

Taking advantage of the 2019/2020 Mozambican household budget survey, in the field both before and during the first phases of the Covid-19 pandemic, we assess the impact of Covid-19 on welfare in 2020, aiming to disentangle this impact from the effect of other shocks. Comparing a number of welfare metrics, and applying propensity score matching and inverse probability weighted regression adjustment approaches, we find that consumption levels are significantly lower and poverty rates substantially higher during the first phases of Covid-19 than in the pre-Covid-19 period. Moreover, the impact was greater in urban areas and accordingly in the more urbanised southern region. Non-food expenditures suffered relatively more than food expenditures, likely a coping strategy, while the impact on consumption levels was greater for people working in the secondary and tertiary sectors than for workers in the primary sector, mainly agriculture. Stunting among under-5 children also suffered. Only a limited number of countries have actual, collected in-person, survey data that span across the initial phases of the Covid-19 pandemic. Thus, the present analysis adds value to our understanding of the welfare consequences of Covid-19 in a low-income context, where automatic social safety nets were not in place during the early phases of the pandemic. More specifically, it helps in assessing the results of previous welfare impact simulations, compared to real data. Even though our main findings are broadly in line with existing estimates based on simulations or phone surveys, important differences between the predictions and the actual results emerge. We conclude that it is critically important for Mozambique and its development partners to develop stronger and more targeted policies and tools to respond to temporary shocks. [ABSTRACT FROM AUTHOR]

Building knowledge about migration governance and policy in the Global South is a priority for research and policy. The studies in this special section offer both new empirical insights and new frameworks for analysis, with key policy implications, that can enrich our discussion of these topics. They focus on issues that relate to national and sub‐national level governance and policy, speaking both to the impact of diverse governance structures and policies on the well‐being of migrants and host communities, and of the policy‐making process itself and the factors influencing that process. In so doing, they point toward promising directions for future work on these topics and underscore the value of multidisciplinary, interdisciplinary, and cross‐regional analysis. This essay provides an introduction to the studies included in this collection, framing their contributions in the context of research in development and ongoing global discussions on migration policy. [ABSTRACT FROM AUTHOR]

Using novel data from micro, small and medium firms in Vietnam, we estimate the relationship between behavioural and personality traits of owners/managers – risk attitudes, locus of control, and innovativeness – and firm-level decisions. We extend the analysis beyond standard metrics of firm performance such as revenue and growth to study intermediate investments, including product innovation, worker training, and adoption of workplace safety measures that are potentially conducive to observed firm performance. Our results show that innovativeness and locus of control are positively correlated with revenue while risk aversion predicts lower revenue. Risk aversion is positively correlated with the adoption of safety measures. Innovativeness, as expected, is associated with an increased probability of product innovations. An internal locus of control predicts higher probability of investments, innovations and worker training. Heterogeneity analyses indicate that innovativeness and risk aversion matter more for firm outcomes in provinces characterized by better business climate. Our results are robust to a variety of checks. We contribute to a nascent and rapidly growing literature on the importance of managerial capital by shedding light on the role of managerial personality characteristics for decision-making in firms in a dynamic transition economy. [ABSTRACT FROM AUTHOR]

Employment in Vietnam and elsewhere in Asia has grown more slowly than GDP over the last several decades. This means GDP per capita is rising. Vietnamese policymakers, however, are concerned that ongoing structural transformation is creating too few jobs. We use data for seven aggregated sectors and the overall Vietnamese economy to examine the roles played by structural transformation, technical change and institutional bias towards capital-intensive development to evaluate the Vietnamese development experience. We find that while some of the difference between GDP and employment growth can be attributed to capital-intensive investment by the state, the majority of the difference is because of technical change. A positive rather than pessimistic overall assessment is warranted based on the available evidence. [ABSTRACT FROM AUTHOR]

• We examine whether self-exposure to gender documents can reduce gender bias of men in Vietnam. • Commenting on gender-related laws does not reduce men's bias against women. • Writing stories on gender has a strong effect on reducing existing prejudice against women. • Writing stories also has a small and positive effect on doing housework. • Changing men's behaviour in practice requires stronger, more sustained interventions. In this study, we use a randomized control trial to examine whether asking Vietnamese men to reflect on gender equality can reduce their gender bias. We randomly selected two groups of married men in four rural provinces and asked the first group to make comments on gender-related laws and the second group to write stories about gender equality. We find that commenting on gender-related laws does not reduce men's bias against women, while writing stories has a strong effect on reducing prejudice against women. Writing stories increases the index of gender attitudes of men in the second group by 0.29 standard deviations. The assignment also has a small effect on their contribution to housework. Changing men's behaviour in practice requires stronger and more sustained interventions. [ABSTRACT FROM AUTHOR]

Should policy-makers, including foreign donors, focus employment strategies in sub-Saharan Africa on strengthening access to formal wage employment or on raising productivity in the informal sector? We examine the evidence in Mozambique and show that crude distinctions between formality and informality are not illuminating. The observed welfare advantage of formal sector workers essentially derives from differences in endowments and local conditions. Non-agricultural informal work can yield higher returns than formal work. The implication is that the informal sector must not be marginalized; and raising productivity in agriculture must be accorded a central place in boosting employment. [ABSTRACT FROM AUTHOR]

Mozambique experienced important reductions in the poverty rate until recently, before two major natural disasters hit, an armed insurgency stroke in the northern province of Cabo Delgado, and the country started suffering from a hidden debt crisis with associated economic slowdown. As the last available national household expenditure survey is from 2014/15, just before these crises started unfolding, there is need for a poverty assessment based on alternative data sources. We study the evolution of multidimensional poverty in Mozambique using survey data from the Demographic and Health Surveys (DHS). Using both the standard Alkire–Foster multidimensional poverty index and the first-order dominance (FOD) method, we find that the multidimensional poverty reduction trend observed between 2009–11 and 2015 halted between 2015 and 2018. Meanwhile, the number of poor people increased, mainly in rural areas and in the central provinces. Importantly, the poorest provinces did not improve their rankings over time, and between 2015 and 2018, no progress took place for most areas and provinces, as measured by the FOD approach. [ABSTRACT FROM AUTHOR]

Summary This is an introduction to the UNU-WIDER special issue of World Development on aid policy and the macroeconomic management of aid. We provide an overview of the 10 studies, grouping them under three sub-themes: the aid–growth relationship; the supply-side of aid (including its level, volatility, and coordination of donors); and the macroeconomic framework around aid. The studies in the special issue demonstrate the centrality of research methodology, the importance of disaggregation, and the need to account for country-specific situations and problems. This introduction concludes that the sometimes “over heated” debate on aid needs redirecting toward more rigorous analysis, in which the advantages—and disadvantages—of using aid for development can be evaluated in a calmer manner. [ABSTRACT FROM AUTHOR]

In this article, we assert that developing countries are much better prepared to undertake negotiations at the Conference of the Parties in Paris (CoP21) as compared to CoP15 in Copenhagen. An important element of this is the accumulation of knowledge with respect to the implications of climate change and the ongoing internalization thereof by key institutions in developing countries. The articles in this special issue set forth a set of technical contributions to this improved understanding. We also summarize five major lessons related to uncertainty, extreme events, timing of impacts, the inseparability of the development and climate agendas, and the rate of assimilation of climate and development information in key institutions. They are drawn from the Development Under Climate Change (DUCC) project carried out by UNU-WIDER of which the countries of the Greater Zambeze Valley formed a part. Finally, we outline three areas for future research. [ABSTRACT FROM AUTHOR]

Recent literature in the meta-analysis category where results from a range of studies are brought together throws doubt on the ability of foreign aid to foster economic growth and development. This article assesses what meta-analysis has to contribute to the literature on the effectiveness of foreign aid in terms of growth impact. We re-examine key hypotheses, and find that the effect of aid on growth is positive and statistically significant. This significant effect is genuine, and not an artefact of publication selection. We also show why our results differ from those published elsewhere. [ABSTRACT FROM AUTHOR]

Summary: Studies of land property rights usually focus on tenure security and transfer rights. Rights to determine how to use the land are regularly ignored. However, user rights are often limited. Relying on a unique Vietnamese panel data set at both household and plot levels, we show that crop choice restrictions are widespread and prevent crop diversification. Restrictions do not decrease household income, but restricted households work harder, and there are indications that they are supplied with higher quality inputs. Our findings are consistent with the view that it is possible to intervene effectively in agricultural production to promote output and food security. Nevertheless, potential benefits of a more diversified crop pattern must be carefully considered in a period where global food markets are in turmoil. [ABSTRACT FROM AUTHOR]

This contribution studies the provision of fringe benefits using a unique survey of small and medium-sized enterprises (SMEs) in Vietnam. Analysis of the survey reveals that women who own SMEs are more likely than men who own similar firms to provide employees with fringe benefits such as annual leave, social benefits, and health insurance. This gender effect exists especially with regard to mandatory social insurance and is robust to the inclusion of standard determinants of wage compensation. The study also explores whether this finding is linked to gender differences in social networks and workforce structure, worker recruitment mechanisms, and the degree of unionization. However, these factors cannot fully account for the observed differences in fringe benefits along the 'gender of owner' dimension. There remains a sizable and unexplained fringe benefits premium paid to employees in women-owned firms. [ABSTRACT FROM AUTHOR]

This paper uses a survey of 932 rural households to uncover how the rural credit market operates in Vietnam. Households obtain credit through formal and informal lenders. Formal loans are almost entirely for production and asset accumulation, while informal loans are used for consumption smoothening. The determinants of formal and informal credit demand are distinct. While credit rationing depends on education and credit history, in particular, regional differences in the demand for credit are striking. A 'one size fits all' approach to credit policy in Vietnam would be inappropriate. [ABSTRACT FROM AUTHOR]

Abstract: In this paper, we present a SAM-based methodology for integrating standard CGE features with a macroeconomic World Bank–International Monetary Fund (IMF) modelling framework. The resulting macro–micro framework is based on optimising agents, but it retains key features from the macroeconomic model. We highlight that the integrated model is amenable to analyses of issues regarding poverty and income distribution, and present an application where the model is used to study a stylized macroeconomic model growth scenario for Mozambique. The integrated model projections demonstrate that the macroeconomic growth scenario overlooks an undesirable distributional impact. The integrated macroeconomic and CGE model framework is in conclusion identified as a superior modelling tool for analysing growth scenarios. [Copyright &y& Elsevier]

This paper demonstrates that developing countries differ considerably from their developed counterparts when focus is on the nature and characteristics of short-run macroeconomic fluctuations. Cycles are generally shorter, and the stylized facts of business cycles across countries are more diverse than those of the rather uniform industrialized countries. Supply-side models are generally superior in explaining changes in output, but a “one-size fits all” approach in formulating policy is inappropriate. Our results also illustrate the critical importance of understanding business regularities as a stepping-stone in the process of designing appropriate stabilization policy and macroeconomic management in developing countries. [Copyright &y& Elsevier]

Provides information on a study which examined the interactions between agricultural technology improvements, risk-reducing behavior and gender roles in agricultural production in Mozambique. General equilibrium perspective on gender and agriculture in Mozambique; Computable general equilibrium model for Mozambique; Simulations and results.

Analyzes the macroeconomic situation and medium-term perspectives of the South African economy. Aims of the Reconstruction and Development Program; Bring about sustainable social development; Government consumption; Increase in gross domestic product; Optimistic scenario; Pessimistic scenario.

• Households smooth consumption in the face of recent shocks by depleting savings and by borrowing. • Households exposed to weather-related shocks over the longer term invest less in productive assets. • Mitigating risk through divesting away from some productive activities is associated with lower levels of food consumption. • Investment strategies that attempt to avoid weather-related shocks do not pay off when future shocks occur. This study explores the impact of weather shocks on the investment decisions of farmers. We distinguish between the long-term effect of exposure to weather shocks, measured as past exposure to deviations in average rainfall levels, and the effect of weather-related shocks that have recently occurred. We examine how households cope with shocks in the short term, in terms of consumption smoothing and the depletion of liquid assets, and whether over the longer-term shock exposure impacts on household investment decisions and welfare. Our results show that households on average manage to smooth consumption in the face of recent shocks by depleting savings and borrowing. Over the longer-term, households that are exposed to shocks invest less in productive assets leading to lower consumption levels. Moreover, the investment strategies of these households do not appear to pay off once additional shocks occur later on. [ABSTRACT FROM AUTHOR]

Inequality is a major international development challenge. This is so from an ethical perspective and because greater inequality is perceived to be detrimental to key socioeconomic and political outcomes. Still, informed debate requires clear evidence. This article contributes by taking stock and providing an up-to-date overview of the current knowledge on the impact of income inequality, specifically on three important outcomes: (1) economic growth; (2) human development, with a focus on health and education as two of its dimensions; and (3) governance, with emphasis on democracy. With particular attention to work in economics, which is especially developed on these topics, this article reveals that the existing evidence is somewhat mixed and argues for further in-depth empirical work across disciplines. It also points to explanations for the lack of consensus embedded in data quality and availability, measurement issues, and shortcomings of the different methods employed. Finally, we suggest promising future research avenues relying on experimental work for microlevel analysis and reiterate the need for more region- and country-specific studies and improvements in the availability and reliability of data. [ABSTRACT FROM AUTHOR]

Using a survey of enterprises in Myanmar, we examine demand for formal credit and the extent to which firms are self-constrained by not applying for credit or if they apply and are constrained by bank's rejections. We have information about firm managers' managerial capacity and risk attitude. We use this to test if the allocation of loanable funds is systematically associated with the attributes. We find that these attributes are positively associated with firm performance and the probability of both having credit demand and applying for credit. On the supply side we find no discernible links to the traits once we control for self-constraint in applying for credit. Thus, the traits improve credit access through a higher likelihood of applying for credit not a higher probability of being granted credit when applying. We suggest to improve the allocation of credit by incentivizing banks to utilize information about managers' business capacity. [ABSTRACT FROM AUTHOR]

• We examine the relationship between exposure to local corruption and mental health in rural Vietnam. • Using two datasets, we find strong and consistent evidence that petty corruption is positively associated with psychological distress. • Suggestive evidence that a recent anti-corruption campaign had significant positive effects on mental health. • There may be substantial psychosocial and mental health benefits from efforts to reduce corruption and improve governance. While there is substantial corruption in developing countries, the costs imposed by corruption on individuals and households are little understood. This study examines the relationship between exposure to local corruption and mental health, as measured by depressive symptoms. We use two large data sets – one cross-sectional and one panel – collected across rural Vietnam. After controlling for individual and regional characteristics, we find strong and consistent evidence that day-to-day petty corruption is positively associated with psychological distress. Our results are robust to a variety of specification checks. Further, we find that the relationship between corruption and mental health is stronger for women, and that there are no heterogeneous effects by poverty status. An examination of the underlying mechanisms shows that reductions in income and trust associated with higher corruption may play a role. Finally, using a difference-in-difference estimation strategy, we also provide suggestive evidence that a recent high profile anti-corruption campaign had significant positive effects on mental health. Overall, our findings indicate that there may be substantial psychosocial and mental health benefits from efforts to reduce corruption and improve rural governance structures. [ABSTRACT FROM AUTHOR]

• We provide new empirical evidence on the way in which the import of inputs impacts on firm-level productivity. • We find a positive association between imports into a sector and firm productivity and a productivity premium for firms using imported inputs. • There are also productivity gains downstream for firms using domestically-produced inputs from more import-intensive sectors. • We find suggestive evidence that import competition leads to product differentiation and better quality domestically-produced inputs. • Ignoring gains from trade through the supply chain may underestimate the impact of trade on the productivity of domestic firms. This paper explores how competition-induced productivity gains from imports in intermediate producing sectors transmit through the supply chain. Based on firm-level panel data from Vietnam, we show that in addition to the productivity premium associated with importing intermediate inputs, firms that use domestically-produced inputs from more import-intensive sectors also have higher productivity. We find evidence that import competition leads to product differentiation, in particular higher quality output in sectors where there is greater scope for quality variation, leading to better quality domestically-produced inputs. We also find evidence that non-importing firms that experience productivity gains due to greater import intensity in upstream sectors change their input mix and become more capital intensive. We conclude that ignoring the gains from trade through this mechanism may significantly underestimate the impact of trade on productivity. [ABSTRACT FROM AUTHOR]

The author reflects on the need to address the quality of health care to meet the sustainable development goal (SDG) 3 of ensuring health lives and promote well-being for all at all ages. He cites plans to publish a them issue on quality-of-care in the era of SDGs that will include original research articles on quality-of-care in low and middle-income countries and calls for submission of papers around 2 themes including measurement of health-care quality.

A correction to this paper has been published: https://doi.org/10.1057/s41287-021-00419-8 [ABSTRACT FROM AUTHOR]

Using a representative sample of more than 5,000 Vietnamese enterprises, we explore the firm-level productivity effects of corporate social responsibility (CSR). The data enables us to create 12 quantitative CSR measures, which can be grouped into two broader categories related to management and community-based CSR initiatives. We find a positive relationship between adoption of CSR initiatives and firm efficiency, and reveal that the impact is stronger for firms in non-competitive industries. Moreover, we show that local community focused CSR initiatives drive the aggregate effect. This suggests that socially responsible actions by firms are likely to pay-off when stakeholder engagement has a localised focus. We provide evidence of reciprocity by showing that employees accept a lower share of additionally generated value-added (controlling for productivity differences) in exchange for working in a company that signals 'good' corporate values. [ABSTRACT FROM AUTHOR]

We investigate the relationship between business practices and enterprise productivity using panel data with matched employer and employee information from Myanmar. The data show that micro, small, and medium-sized manufacturing enterprises in Myanmar typically adopt only a few modern business practices, and the persistence in the use is extremely low. Even so, we find a positive and economically important association between business practices and productivity. Specifically, the empirical results show that a one standard deviation difference in applied business practices (equivalent to applying an additional 4 to 5 of the 20 business practices in focus) is associated with an 8–10 per cent difference in labour productivity. Utilising the employer–employee information to estimate Mincer-type wage regressions, we find that workers receive about half to two-thirds of the productivity gain in higher wages. Overall, our findings support the notion of business practices as a production technology, and we find that workers and managers split the productivity gains evenly. [ABSTRACT FROM AUTHOR]

Using a unique survey data set this paper documents a positive effect of self-employment in farming on subjective well-being. This direct effect is only partly offset by negative, indirect effects working through income and other variables. These findings are interpreted as effects of self-employment in farming on perceived autonomy, competence and relatedness. The results suggest that economic transformation is associated with a psychological cost, which may contribute to explaining earnings gaps between sectors and types of employment. We also investigate other determinants of happiness, and for example find strong positive effects of own income and strong negative effects of neighbors’ income, suggesting the importance of relative rather than absolute levels of income. [ABSTRACT FROM AUTHOR]

A recent study of 36 sub-Saharan African countries found a positive impact of aid in the majority of these countries. However, for Tanzania and Ghana, two major aid recipients, aid did not seem to have been equally beneficial. This study singles out these two countries for a more detailed empirical investigation. The focus is on the effect of aid when allowing external and nominal factors to play a role in the macroeconomic transmission mechanism. We conclude that when monetary and external factors are properly accounted for, then aid has been pivotal to growth in both real GDP and investment. [ABSTRACT FROM AUTHOR]

This Special Issue explores macroeconomic effects of aid from various perspectives through a blend of studies, both conceptual and empirical in nature. The overall aim is to enhance the understanding of the macroeconomic dimensions of aid in the policy and research communities, and to inspire further innovative work in this important area. This opening article provides a scene setting summary of five generations of aid research, with a particular focus on how the JDS has contributed to this literature, and ends with an overview of the papers included in this Issue. [ABSTRACT FROM AUTHOR]

• We examine the potential impacts of international coffee price fluctuations on the nutritional status of children in the 0–5 age category. • We show that an upward international coffee price fluctuation is associated with improvement in childhood nutritional status in rural Tanzania. • The effect is higher for coffee growers relative to non-growers, though it is not always statistically significant implying spillover effect. • Our result underlines the importance of enhancing farmers' coping abilities to manage the adverse impacts of fluctuations in commodity prices. In this paper, we empirically examine the potential impact of commodity price fluctuations on the nutritional status of children in the 0–5 age category. This is important as adverse shocks that children experience at the time of birth will have an irreversible long-term impact that can adversely affect subsequent human capital formation. Unlike the bulk of the literature in the area that focuses on the impacts of drought-induced income shocks, we focus on changes in income caused by fluctuations in international coffee prices. We thus aim to estimate the potential impacts of international commodity price fluctuations on the nutritional status of children in commodity-export-dependent developing countries. To this end, we use the three waves of the Tanzanian National Panel Survey (NPS), together with data on international coffee prices. Our results show that an upward coffee price fluctuation is associated with an improvement in childhood nutritional status in rural Tanzania. This result is robust to the inclusion of household (sibling) fixed effects and data choices. The main result of our paper underlines the importance of international commodity price fluctuations for the wellbeing of communities in commodity-export-dependent countries. In the case of Tanzania, for example, the coffee sector creates direct income for about 400,000 smallholder farmers who produce 90 percent of Tanzania's coffee, which is mainly produced for export. Thus, if not well-managed, international commodity price fluctuations put a strain on the poverty reduction endeavors of developing countries that depend on exports of one or a few non-oil commodities. The results of the paper also have implications for Goal number 2 of the Sustainable Development Goals (SDGs) which aims to end all forms of malnutrition by 2030. [ABSTRACT FROM AUTHOR]

Summary This study provides a replication of the empirical results reported by Nowak-Lehmann, Dreher, Herzer, Klasen, and Martínez-Zarzoso (2012) (henceforth NDHKM). We uncover that NDHKM relied on a regression model which included a log transformation of variables that are not strictly positive. This led to nonrandom omission of a large proportion of observations. Furthermore, we show that NDHKM’s use of co-integrated regressions is not a suitable empirical strategy for estimating the causal effect of aid on income. Evidence from a Panel VAR model estimated on the dataset of NDHKM, suggests a positive and statistically significant long-run effect of aid on income. [ABSTRACT FROM AUTHOR]

Summary This paper confirms recent evidence of a positive impact of aid on growth and widens the scope of evaluation to a range of outcomes including proximate sources of growth (e.g., physical and human capital), indicators of social welfare (e.g., poverty and infant mortality), and measures of economic transformation (e.g., share of agriculture and industry in value added). Focusing on long-run cumulative effects of aid in developing countries, and taking due account of potential endogeneity, a coherent and favorable pattern of results emerges. Aid has over the past 40 years stimulated growth, promoted structural change, improved social indicators, and reduced poverty. [ABSTRACT FROM AUTHOR]

Economic development in low income settings is often associated with an expansion of higher-value agricultural activities. Since these activities often bring new risks, an understanding of cropland decisions and how these interact with shocks is valuable. This paper uses data from Mozambique to examine the effect of weather shocks on cropland decisions. We account for the bounded nature of land shares and estimate a Pooled Fractional Probit model for panel data. Our results show that crop choice is sensitive to past weather shocks. Farmers shift land use away from cash and permanent crops one year after a drought and from horticulture and permanent crop after a flood. However, this reallocation seems temporary as farmers devote less land to staples after two periods. This is consistent with the aim of maintaining a buffer stock of staples for home consumption. [ABSTRACT FROM AUTHOR]

One of the dual objectives of the Clean Development Mechanism ( CDM) of the Kyoto Protocol is to assist host countries in achieving sustainable development. With various CDM indicators for 58 CDM host countries over the period 2005-2010, this paper empirically assesses whether CDM project development fulfils its sustainable development objective. Using a unique dynamic panel data method based on the long-differenced model, this research provides convincing evidence that CDM projects contribute to sustainable development in host countries. It sheds light on the role of the CDM in the process of global sustainability with clear policy implications for developing countries and those embracing market instruments. [ABSTRACT FROM AUTHOR]

The global economy is passing through a period of profound change. The immediate concern is with the financial crisis, originating in the North. The South is affected via reduced demand and lower prices for their exports, reduced private financial flows and falling remittances. This is the first crisis. Simultaneously, climate change remains unchecked, with the growth in greenhouse gas emissions exceeding previous estimates. This is the second crisis. Finally, malnutrition and hunger are on the rise, propelled by the recent inflation in global food prices. This constitutes the third crisis. These three crises interact to undermine the prosperity of present and future generations. Each has implications for international aid and underline the need for concerted action. [ABSTRACT FROM AUTHOR]

This paper analyses whether direct government assistance during start-up and other forms of interaction with the state sector have influenced the long-run performance of small and medium-sized manufacturing enterprises (SMEs) in Vietnam. Using three partly overlapping surveys during the period 1990-2000, we find strong effects on firm dynamics from interaction with state institutions. Enterprises which have the state sector as their main customer perform better. This is so for both survival and growth. Moreover, temporary tax exemptions during firm start-up had a separate and positive influence on long-run growth for non-household enterprises and initial credit support seems to benefit rural firms. [ABSTRACT FROM AUTHOR]

Summary: History, not predictions of CGE models or cross-country growth studies, shows a strong relationship between trade and development. Vietnam’s experience with bilateral trade agreements, comparing actual outcomes with predictions from existing models, demonstrates this and the limitations of research methodologies. Forecasts for Vietnam greatly underestimated the impact of past agreements because tariff reform was not the main factor driving adjustments. Addressing market imperfections through institutional reform was central to bringing output and trade expansion. Key questions for future research are whether policy reform will result in new institutional changes, and how resulting incentives determine the evolution of investment by sector. [Copyright &y& Elsevier]

Summary: This paper analyzes how economic and non-economic characteristics at the individual, household, and community level affect the risk of victimization in Mozambique. We use a countrywide representative household survey from Mozambique with unique individual level information and show that the probability of being victimized is increasing in income, but at a diminishing rate. The effect of income is dependent on the type of crime, and poorer households are vulnerable. While less at risk of victimization, they suffer relatively greater losses when such shocks occur. Lower inequality and increased community level employment emerge as effective avenues to less crime. [Copyright &y& Elsevier]

Agriculture is the backbone of most developing economies and structural transformation an important vehicle for economic development in low-income agrarian contexts. This special issue brings together a set of high quality academic studies to answer key research questions of importance to understanding agricultural development and change in developing country settings. Using the case of Vietnam, this collection provides comprehensive analytical contributions, that rely on detailed microdata, to understand crucial topics within the fields of agricultural and development economics. Together, these studies provide important insights into the mechanisms underlying structural transformation and its consequences that can contribute to the design of policies to manage the structural transformation process effectively, particularly for the most vulnerable groups in society. [ABSTRACT FROM AUTHOR]

This study combines evidence from interviews in seven countries with (i) government institutions responsible for attracting Foreign Direct Investment (FDI), (ii) 102 multinationals (MNEs), and (iii) 226 domestic firms linked to these foreign affiliates as suppliers, customers, or competitors, to identify whether relations between MNEs and domestic firms lead to direct transfers of knowledge/technology. We first document that there are relatively few linkages between MNEs and domestic firms in sub-Saharan Africa compared with Asia. However, when linkages are present in sub-Saharan Africa they raise the likelihood of direct knowledge/technology transfers from MNEs to domestic firms as compared to linked-in firms in Asia. Finally, we do not find that direct knowledge/technology transfers are more likely to occur through FDI than through trade. As such our results are not consistent with the view that tacit knowledge transfers are more likely to occur through localised linkages. [ABSTRACT FROM AUTHOR]

We consider the interplay of climate change impacts, global mitigation policies, and the economic interests of developing countries to 2050. Focusing on Malawi, Mozambique, and Zambia, we employ a structural approach to biophysical and economic modeling that incorporates climate uncertainty and allows for rigorous comparison of climate, biophysical, and economic outcomes across global mitigation regimes. We find that effective global mitigation policies generate two sources of benefit. First, less distorted climate outcomes result in typically more favorable and less variable economic outcomes. Second, successful global mitigation policies reduce global fossil fuel producer prices, relative to unconstrained emissions, providing a substantial terms of trade boost of structural fuel importers. Combined, these gains are on the order of or greater than estimates of mitigation costs. These results highlight the interests of most developing countries in effective global mitigation policies, even in the relatively near term, with much larger benefits post-2050. [ABSTRACT FROM AUTHOR]

The rights-based approach to development targets progress towards the realization of 30 articles set forth in the Universal Declaration of Human Rights. In current practice, progress is frequently measured using the multidimensional poverty index. While elegant and useful, the multidimensional poverty index is inconsistent with the Universal Declaration of Human Rights principles of indivisibility, inalienability, and equality. We argue that a first-order dominance (FOD) methodology maintains basic consistency with these principles. Specifically, FOD comparisons are independent of any applied weighting schemes and hence are free from assumptions regarding substitutability between included welfare indicators (indivisibility). FOD cannot be established when welfare in any indicator is deteriorating, no matter how great the advancement is in other indicators (inalienability). Finally, FOD requires that domination occurs throughout the population (equality), implying that welfare gains among better-off groups never offset welfare losses among worse-off groups. We discuss and compare the properties of the multidimensional poverty index and first-order dominance approach and apply both measures to 26 African countries using data near 2002 and 2012. Results across the two measures are broadly similar but not the same. For example, while the multidimensional poverty index suggests that all countries are advancing, FOD indicates that 14 countries experience broad-based progress, two countries show more moderate likelihoods of progress, and the remaining 10 countries neither improve nor deteriorate in terms of attainment of rights for the dimensions considered. We conclude that the multidimensional poverty index and first-order dominance approaches are useful complements that should be employed in tandem. [ABSTRACT FROM AUTHOR]

An introduction is presented in which the editor discusses various reports within the issue on topics including job creation, labour markets in developing countries, and the relationship between poverty reduction and the lack of structural changes.

An introduction is presented in which the editor discusses various reports within the issue on topics including quality of health-care services in low- and middle-income countries, innovations in measuring and assessing quality of health-care services, and the need to improve health-care quality.