1,721,223 research outputs found

    Access to improved water source and satisfaction with services: Evidence from rural Ethiopia

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    In recent years access to safe and reliable water supplies has received increased government attention in Ethiopia. As a result, the national coverage rate for this service has gradually improved. Yet millions of people in rural areas still do not get drinking water from an improved water source. While expanding improved water source schemes is generally essential, it is equally important to ensure that the schemes have increased users' satisfaction with water quality and availability for everyday use. Using household survey data and employing univariate and bivariate probit models, this paper attempts to investigate the effect of access to an improved water source on users' satisfaction with both quality and availability of water. The study findings suggest that access to an improved water source significantly raised household satisfaction with both quality and availability of water. However, the effect of the improved water source on users' satisfaction was slightly lower for water availability than for water quality.drinking water, users' satisfaction, bivariate probit,

    Valuing the environment in developing countries: Modeling the impact of distrust in public authorities' ability to deliver public services on the citizens' willingness to pay for improved environmental quality

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    In this paper, we employ the choice experiment method to estimate local citizens' valuation of a public intervention that proposes to improve the quality of an important environmental resource, namely, the Ganges River in India. To elicit citizens' willingness to pay (WTP) higher municipality taxes for an intervention that proposes to improve the quantity and quality of wastewater treated by the local sewage treatment plant (STP), 150 randomly selected citizens of the municipality of Chandernagore, located on the banks of the Ganges River in West Bengal, were interviewed. The findings reveal that almost all (98 percent) of the citizens value the quality of the water and the environment in the Ganges, though a great majority (90 percent) protested the intervention by not choosing the improved STP scenario in at least one of the eight hypothetical markets in which they were asked to participate. When asked their reasons for not preferring the improved scenarios, 92 percent of them stated that they do not trust the authorities to efficiently and effectively manage the funds generated through additional taxes. The protest responses were controlled for with the use of the nested logit model (NLM). The results reveal that the citizens are willing to pay significant amounts to ensure that the intervention takes place and that an improved STP treats larger amounts of wastewater to a higher quality before discharging it to the Ganges. Therefore, to improve the wastewater management services and the related environmental quality in the water bodies into which treated wastewater is deposited, the municipalities could rely—at least to some extent—on their citizens' WTP higher taxes for provision of improved services. To capture this WTP, however, municipalities' performance, trustworthiness, and accountability, as well as the citizens' perceptions of these, should be improved.choice experiment method, nested logit model, willingness to pay, sewage treatment plant, distrust in public authorities,

    Purpose and potential for commodity exchanges in African economies:

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    This paper reviews the purpose and potential of commodity exchanges in Africa. Drawing from the existing literature and using indicative empirics, it examines the conditions that enable successful exchanges, highlights the special challenges to setting up exchanges in Africa, and reviews alternatives to domestic exchanges. We argue that many critical preconditions for the successful establishment of commodity exchanges in Africa remain binding in the short to medium term. The development of commodity exchanges in the region is impeded by the relatively small size of domestic commodity markets, the weak physical and communication infrastructure, a lack of supportive legal and regulatory environments, and the likelihood of policy interventions, particularly in the staple cereals market. Meanwhile, the demand for a domestic commodity exchange for export crops may be limited due to the availability of well-established exchanges abroad and functioning auction floors. The paper highlights three points: (a) efforts to launch exchanges in Africa should realistically assess whether basic conditions for success can be met, (b) if the pre-conditions cannot be met, the use of existing exchanges abroad or the development of regional exchanges may be more feasible than the establishment of national commodity exchanges, and (c) the goals of risk management and reduced transaction costs might be achieved more effectively by improving market fundamentals through investments in transportation, information services, or other financial institutions.commodity exchanges, Risk management, Market development,

    Do geese migrate domestically?: Evidence from the Chinese textile and apparel industry

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    The vast majority of empirical literature on “flying geese” examines industrial relocation across national boundaries, in particular in Asia. However, few studies have empirically tested whether this kind of “flying geese” pattern of industrial relocation has occurred domestically in a large country, provided that the regional difference is large enough. Using textile and apparel industry data for the period 1997–2008 in China, the paper shows that until 2004, the textile and apparel industry was still concentrated in the eastern region of China, but starting in 2005, the flying geese phenomenon of industrial relocation began to appear.industrial relocation, flying geese hypothesis, textile and apparel industry, labor-intensive industries,

    Climate change impacts on food security in Sub-Saharan Africa: Insights from comprehensive climate change scenarios

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    Climate change impacts vary significantly, depending on the scenario and the Global Circulation Model (GCM) chosen. This is particularly true for Sub-Saharan Africa. This paper uses a comprehensive climate change scenario (CCC) based on ensembles of 17 GCMs selected based on their relative performance regarding past predictions of temperature and precipitation at the level of 2o x 2o grid cells, generated by a recently developed entropy-based downscaling model. Based on past performance, the effects of temperature and precipitation across the 17 GCMs are incorporated into a global hydrological model that is linked with IFPRI's IMPACT water and food projections model to assess the effects of climate change on food outcomes for the region. For Sub-Saharan Africa, the paper finds that the CCC scenario predicts consistently higher temperatures and mixed precipitation changes for the 2050 period. Compared to historic climate scenarios, climate change will lead to changes in yield and area growth, higher food prices and therefore lower affordability of food, reduced calorie availability, and growing childhood malnutrition in Sub-Saharan Africa.Climate change, hydrology, crop yield, food security,

    Investigating economywide and household-level impacts of sector-specific shocks in a poor country: The case of avian flu in Ethiopia

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    Do the economic effects of potential avian flu outbreaks justify policy attention and resource allocation in a poor country like Ethiopia? We address this question by assessing both economywide (macro-level) economic impacts and household (micro-level) livelihood impacts that might be caused by an avian flu outbreak in Ethiopia. Because 1) the prevalent traditional poultry sector is weakly linked to other sectors, 2) livelihoods of the poultry-producing households are diversified, and 3) shocks are idiosyncratic in nature, the study finds that the impacts of an avian flu outbreak are likely to be small and limited to producers who keep larger flocks. Therefore, allotment of funds to prevent the disease must be justified on the grounds of preventing spread of the disease to human populations in Ethiopia and in other countries where it might have more severe economic and health effects. In other words, resource allocation must be justified as a global public good.avian flu, Livelihoods, multimarket model, simulations, probit, zero-inflated negative binomial, Propensity score matching,

    Market and climatic risks and farmers' investment in productive assets under the Second Fadama Development Project in Nigeria:

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    The majority of African farmers lack the means to mitigate the impact of risks such as those associated with rainfall and commodity prices. Because most farmers in Sub-Saharan Africa are risk-averse, they may be willing to invest in productive assets that can mitigate the impacts of such risks if their capital constraints are relaxed through external financial assistance. We test this hypothesis using panel data on Nigerian farmers' investment behaviors collected during the Second National Fadama Development Program (Fadama II), which provided financial assistance to farmers in obtaining various productive assets, as well as historical data on rainfall and white gari price in various locations in Nigeria. The results support the hypothesis. Under the Fadama II, farmers facing higher rainfall risk (coefficient of variation in annual rainfall) were more likely to invest in irrigation pumps that can mitigate the impact of rainfall risk, and those facing higher risks on white gari price were more likely to invest in milling machines that enable them to process cassava into flour instead of gari.poverty trap, rainfall risk, price risk, irrigation pump, milling machine, Risk aversion,

    Loss prevention for hog farmers: Insurance, on-farm biosecurity practices, and vaccination

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    Using agricultural household survey data and claim records from insurers for the year 2009, this paper analyzes hog producers' choice of means of loss prevention and identifies the relationships among biosecurity practices, vaccination, and hog insurance. By combining one probit and two structural equations, we adopt three-stage estimations on a mixed-process model to obtain the results. The findings indicate that biosecurity practices provide the basic infrastructure for operating pig farms and complement both the usage of quality vaccines and the uptake of hog insurance. In addition, there is a strong relationship of substitution between quality of vaccine and demand for hog insurance. Hog farmers that implement better biosecurity practices are more likely to seek high-quality vaccines or buy into hog insurance schemes but not both. For those households with hog insurance, better biosecurity status, better management practices, and higher-quality vaccine significantly help to reduce loss ratios. However, we also find a moral hazard effect in that higher premium expenditure by the insured households might induce larger loss ratios.Biosecurity, hog insurance, loss prevention, vaccine,

    Institutions, geography, trade, and income per capita: A spatial-simultaneous equation approach

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    This paper tests a series of prominent hypotheses regarding how institutions, geography, and trade interact to influence income per capita using a novel spatial econometric approach to control for both spillovers among neighboring countries and spatially correlated omitted variables. Simultaneous equations are used to identify alternative channels through which country characteristics might affect income through trade and institutions, and then to test the robustness of those effects. Evidence indicated that both institutions and trade influence growth. Geographical factors such as whether a country is landlocked and its distance to the equator influence income, but only through trade. Data covering 95 countries across the world from 1960 through 2002 was used to construct a pooled dataset of 5-year averages (9 in all) centered on 1960, 1965, and so on through 2000. Both limited and full information estimators, partly based on a generalized moments (GM) estimator for spatial autoregressive coefficients, were used. These allow for spatial error correlation, correlation across equations, and the presence of spatially lagged dependent variables.economic growth, Geography, Institutions, simultaneous equations, spatial econometrics, trade,
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