Innovation and productivity in formal and informal firms in Ghana

Despite the high profile of the issue in current policy formulations in low-income countries (LICs), there is little large firm level survey based empirical evidence on innovativeness and firm performance, especially in informal establishments. This paper aims to fill this gap in the literature using a revised Crépon-Duguet-Mairesse (CDM) structural model to analyse data from a unique innovation survey of 501 manufacturing firms in Ghana. We find that innovation positively impacts the labour productivity of firms, technological innovations more than managerial innovations. Formal firms do not tend to be more productive than informal firms, but the role of innovation on productivity tends to be greater for formal firms

Buy or make? Agricultural production diversity, markets and dietary diversity in Afghanistan

Increasing on-farm production diversity and improving markets are recognized as ways to improve the dietary diversity of smallholders. Using instrumental variable methods to account for endogeneity, we study the interplay of production diversity, markets and diets in the context of seasonality in Afghanistan. We confirm an important seasonal dimension to the interplay. Improved crop diversity over the year is positively associated with dietary diversity in the regular season, but not in the lean season. Livestock species diversity remains important for dietary diversity throughout the year, but particularly so in the lean season when the influence of cropping diversity is low. Market aspects become important for dietary diversity specifically in the lean season

Fair compensation in large-scale land acquisitions: fair or fail?

Despite the existence of a legal framework defining the right to fair compensation, and notwithstanding the vast literature on transnational and domestic land deals, no theory has been developed so far to allow for a specific analysis of the economics of fair compensation in large-scale land acquisitions (LSLAs), limiting our understanding of the underlying reasons of success or failure of this important legal protection mechanism. Building on the review of the existing literature on fair compensation and on the critical examination of several real-world case studies, this paper fills this gap by developing a three-player sequential game, which captures the peculiarities of fair compensation in large-scale land deals. We show that, under specific but not uncommon circumstances, the local community will be offered a zerocompensation as a rational consequence of the players’ optimisation, and this will lead to a land conflict, with all players incurring additional costs. Our findings suggest that local populations will be offered – and willing to accept – a compensation that is smaller than their original livelihood, unless they can oppose the land deal at no cost. Thus, the right to consent is inextricably related to the right to reject in LSLAs. If the former is frictionless while the latter comes at a cost, then there is space for strategic behaviours that exploit power imbalances and discretionary processes, and the fair compensation right is, in practice, weakened

Innovation in low income countries: A survey report

This report gathered data from more than 500 formal and informal firms from across Ghana, sampling businesses in a large variety of industries to investigate the determinants of innovation in firms under institutional and resource constraints, and how innovation is transmitted in these contexts

Rural transformation and the double burden of malnutrition among rural youth in low and middle-income countries

Adolescence and early adulthood are periods of major biological, economic and social transitions for rural youth. They provide a critical window of opportunity for addressing chronic nutritional deficits from childhood, for “catch-up” growth, for providing a solid foundation for a healthy productive and reproductive life, and for arresting the intergenerational transmission of malnutrition. In this study we show that rural transformation processes are associated with improvements in rural youth nutrition – malnutrition and underweight – in nearly all regions, although the pace of change varies considerably across countries. Most low- and middle-income countries (LMICs) are faced with the double burden of malnutrition and overweight/obesity, and in some countries this double burden is increasing, with the prevalence of underweight and overweight/obesity rising concurrently. The effect of rural transformation processes on rural youth nutrition is mediated by its effects on the external and personal domains of the “food environment”. Transformation of agri-food systems are bringing about large changes in the diets of rural youth in LMICs, and particularly of the younger age groups, who appear to be witnessing rapid dietary transitions. The Young Lives dataset suggest that certain near-universal changes in patterns of dietary and nutrient intake patterns can be discerned in LMICs, although the pace of change varies. Dietary transitions are also driven by “globalisation influences” – especially dissemination of information through digital/social media and food industry advertising and marketing strategies – even in countries with low/slow rural transformation. Our results show that rural transformation processes can have both positive and negative effects on rural youth nutrition in LMICs. Despite the globalisation influences of international trade and agri-food systems, dietary changes in individual LMICs are still influenced by national policies and production patterns. Understanding the pathways to impact of rural transformation on rural youth nutrition is crucial for designing “nutrition-sensitive” rural transformation policies

Articulating fertilizer subsidy effects on women’s diet quality by food supply source in Mali

Background Mali’s fertilizer subsidy program aims to reduce food insecurity among the nation’s predominantly rural people by jump-starting productivity gains of major crops. This paper contributes to sparse evidence regarding its effects. Methods Theory predicts that agricultural productivity can affect diet quality directly through two channels. The production channel influences the availability of food for household consumption or sale. The income pathway, resulting from sales, leads to household food expenditure. We test this hypothesis by applying propensity score matching methods to farm household survey data collected from 2400 households in Mali in 2018. Results We find that the overall effect of the fertilizer subsidy on women’s dietary diversity is positive in the Niger Delta and negative on the Koutiala Plateau. Further examination by food supply source reveals no subsidy effects on the dietary diversity provided by on-farm production in either zone. The subsidy negatively influences dietary diversity of foods sourced as gifts in the Niger Delta. Subsidy effects on dietary diversity accessed through food purchases are strong and positive in the Niger Delta, but negative on the Koutiala Plateau. The Koutiala Plateau is found in the region of Sikasso, where rising incomes from cotton production, which is the major export crop of the region and of the nation, have been shown not to alleviate poverty and malnutrition (a dilemma known as the “Sikasso Paradox”). Conclusions Our approach reveals that additional income from increased yields stimulated by subsidized fertilizer can enable off-farm purchases of more nutritious food and thereby improve nutritional outcomes for women

Livestock diversification mitigates the impact of farmer-herder conflicts on animal-source foods consumption in Nigeria

The escalation of farmer-herder conflicts poses a threat to agricultural production and livelihood outcomes in Nigeria. However, households with adaptive capacity may mitigate the negative impact of these conflicts on nutritious food consumption. In this study, we examine the impact of farmer-herder conflicts on animal-source foods (ASF) consumption and investigate the extent to which livestock diversification can serve as a mitigating factor. Using panel household data from Nigeria with a global georeferenced conflict dataset, we employ fixed-effects regression models to understand a causal relationship. Our findings reveal that exposure to farmer-herder conflicts reduces the quantity of ASF consumed and increases the number of days households exclude ASF from their diets. Additionally, we establish the role livestock diversification plays in mitigating the impacts of farmer-herder conflicts on ASF consumption. This evidence provides policymakers and practitioners with potential strategies for building nutrition resilience in locations that are exposed to farmer-herder conflicts. Promoting conflict-sensitive livestock production systems, such as cattle ranching, can be a strategy for sustaining nutrition and peacebuilding in Nigeria and countries in similar conflict situations