Search

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jdeveco.2015.09.004 Byline: Sam Jones, Finn Tarp Abstract: The notion that foreign aid harms the institutions of recipient governments remains prevalent. We combine new disaggregated aid data and various metrics of political institutions to re-examine this relationship. Long run cross-section and alternative dynamic panel estimators show a small positive net effect of total aid on political institutions. Distinguishing between types of aid according to their frequency domain and stated objectives, we find that this aggregate net effect is driven primarily by the positive contribution of more stable inflows of 'governance aid'. We conclude that the data do not support the view that aid has had a systematic negative effect on political institutions. Article History: Received 2 April 2015; Revised 28 August 2015; Accepted 26 September 2015 Article Note: (footnote) [star] We are grateful to the Editor and two anonymous referees for the extremely valuable feedback and constructive suggestions. All errors are our own.

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.euroecorev.2015.02.005 Byline: Carol Newman, John Rand, Theodore Talbot, Finn Tarp Abstract: This paper explores the relationship between foreign direct investment (FDI) and the productivity of host country domestic firms. We rely on a specially designed survey of over 4000 manufacturing firms in Vietnam, and separate out productivity gains along the supply chain (obtained through direct transfers of knowledge/technology between linked firms) from productivity effects through indirect FDI spillovers. In addition to identifying indirect vertical productivity spillovers from FDI, our results show that there are productivity gains associated with direct linkages between foreign-owned and domestic firms along the supply chain not captured by commonly used measures of spillovers. This includes evidence of productivity gains through forward linkages for domestic firms which receive inputs from foreign-owned firms. Author Affiliation: (a) Department of Economics, Trinity College Dublin, Ireland (b) Development Economics Research Group, Department of Economics, University of Copenhagen, Denmark (c) Centre for Global Development, London, United Kingdom (d) UNU-WIDER, Helsinki, Finland Article History: Received 14 January 2014; Accepted 27 February 2015

Byline: Channing Arndt (1), Finn Tarp (1,2) Abstract: 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. Author Affiliation: (1) World Institute for Development Economics Research, United Nations University, Katajanokanlaituri 6 B, 00160, Helsinki, Finland (2) Department of Economics, University of Copenhagen, Copenhagen, Denmark Article History: Registration Date: 01/04/2015 Received Date: 16/01/2015 Accepted Date: 06/03/2015 Online Date: 17/04/2015 Article note: This article is part of a Special Issue on 'Climate Change and the Zambezi River Valley' edited by Finn Tarp, James Juana, and Philip Ward.

Keywords Entrepreneurship; SMEs; Firm performance; Personality; Risk attitudes; Vietnam Highlights * Examine the role of owner/manager personality for SME outcomes in Vietnam. * Risk aversion predicts lower revenue and higher adoption of safety measures. * Innovativeness correlated with higher revenue and higher chance of innovation. * Internal locus of control predicts higher revenue, investment and innovation. * Traits correlate with outcomes differentially based on local business climate. Abstract 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. Author Affiliation: (a) UNU-WIDER, Katajanokanlaituri 6B, 00160 Helsinki, Finland (b) Department of Economics, University of Copenhagen, Oster Farimagsgade 5, DK-1353 Copenhagen K, Denmark * Corresponding author. Article History: Received 23 January 2017; Revised 31 January 2018; Accepted 3 February 2018 Byline: Smriti Sharma [smriti@wider.unu.edu] (a,*), Finn Tarp [finn@wider.unu.edu] (a,b)

Byline: Jingjing He, Yongfu Huang, Finn Tarp Keywords: Clean Development Mechanism; markets instruments; sustainable development; dynamic panel data model; long-differencing Abstract 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.