Foreign direct investment and economic growth. Analysis of sectoral foreign direct investment in Tanzania

Submitted by Salvatory Macha on
EfD Authors:

This paper assesses the role of foreign direct investment in economic growth by analyzing the contribution of sectoral external finance in Tanzania. Time series data from 1988 to 2017 and 1999 to 2017 for the general and sector‐specific foreign finance respectively is studied using time series econometrics techniques. More specifically, the autoregressive distributive lag bound test for cointegration and error correction model are employed to evaluate the impact of sector foreign direct investment on growth.

Policy Design

CO2 emissions, agricultural productivity and welfare in Ethiopia

Submitted by Petra Hansson on
EfD Authors:

Purpose – Climate change has become one of the most important development challenges worldwide. It affects various sectors, with agriculture the most vulnerable. In Ethiopia, climate change impacts are exacerbated due to the economy’s heavy dependence on agriculture. The Ethiopian Government has started to implement its climate-resilient green economy (CRGE) strategy and reduce CO2 emissions. Therefore, the purpose of this study is to examine the impact of CO2 emission on agricultural productivity and household welfare.

Agriculture, Climate Change, Land, Policy Design

Natural Resource Revenues and Public Investment in Resource-rich Economies in Sub-Saharan Africa

Submitted by Samuel Wakuma on

The general policy prescription for resource‐rich countries is that, for sustainable consumption, a greater percentage of the windfall from resource rents should be channeled into accumulating foreign assets such as a sovereign public fund as done in Norway and other developed but resource‐rich countries. This might not be a correct policy prescription for resource‐rich sub‐Saharan African (SSA) countries, where public capital is very low to support the needed economic growth. In such countries, rents from resources serve as an opportunity to scale‐up the needed public capital.

Policy Design

Transition Patterns of Fishermen and Farmers into Seaweed Small-Scale Aquaculture: The Role of Risk and Time Preferences 20-03

Submitted by Eugenia Leon on

The extensive kelp forests along Chile’s coastline are an important source of income for many small fishing operations in Chile. But harvesting pressure has denuded many areas of the sea floor, threatening the health of the inshore marine environment. Recently, small operators have begun work to repopulate and/or cultivate seaweed. This work aims at studying the role of fishing and agriculture as outside options and their interactions with risk and time preferences in the uptake of seaweed aquaculture technology.

Agriculture, Fisheries

Are forest plantation subsidies affecting land use change and off-farm income? A farm-level analysis of Chilean small forest landowners

Submitted by César Salazar on
EfD Authors:

Forest plantations have increased rapidly in the last three decades, to a large extent due to direct and indirect financial incentives. At the farm level, forestry incentives can affect the investment decisions of small forest landowners and bring socioeconomic externalities or unintended effects associated with farm management. The purpose of this study is to assess the ex post impacts of a forestry subsidy on land use changes and off-farm income experienced by Chilean small forest landowners.

Agriculture, Climate Change, Conservation, Land, Policy Design

The Phillips curve and the role of monetary policy in Chile

Submitted by César Salazar on
EfD Authors:

In this paper, the empirical analysis finds that the dynamics of inflation and unemployment can be described by a Phillips curve when allowing for a positive co-movement between trend-adjusted productivity and unemployment. This suggests that improvements in productivity have been achieved by laying off the least productive part of the labor force. Furthermore, the natural rate of unemployment is a function of the long-term interest rate, indicating that monetary policy is not completely neutral in the long run.

Policy Design