THE EFFECT OF ACCESS TO IMPROVED WATER SOURCES AND SANITATION ON ECONOMIC EFFICIENCY: THE CASE OF SUB‐SAHARAN AFRICAN COUNTRIES

This paper evaluates the effect of access to improved water sources and sanitation on 41 sub‐Saharan African (SSA) countries' economic efficiency and growth. For this reason data envelopment analysis (DEA), bootstrap techniques and probabilistic approaches are used. The empirical results indicate that SSA countries' economic efficiency is positively influenced by the access of population both on improved water sources and sanitation. Finally, when the provision of access to improved water sources is provided to more than 50% of the population, the positive effect on countries' economic efficiency is much greater compared with the effect of providing sustainable access to improved sanitation to the same proportion of population.     

Climate risk management strategies and food security: Evidence from Cambodian rice farmers

This study investigates the adoption of three climate-resilient strategies (3CRS), drought/flood-resistant rice varieties, integrated pest management (IPM) practices, and weather advisory; the impact of 3CRS on food security, namely, productivity and profits of the Cambodian paddy farmers. Using endogenous switching regression (ESR) approach and household survey from Cambodian farmers, the study finds a low adoption rate (14%) of 3CRS. The low adoption of 3CRS means missing opportunities for rice farmers. Access to information through training and input suppliers is found to increase the adoption of 3CRS. The adoption of 3CRS increases rice yields and profits by 36% and 45%, respectively. Additionally, if nonadopters adopted 3CRS, rice yields and profits would increase by 55% and 52%, respectively. Findings suggest the development of institutional capacity, implementation, and dissemination of knowledge of climatic changes, and adaptation strategies to increase food security.     

Technology,education, and economic growth in Sub-Saharan Africa

This study examines whether telecommunications infrastructure promotes economic growth in countries with better access to education compared to those with less access. Using a panel of 45 Sub-Saharan African countries from 1993 to 2015, the results using the fixed-effects, two-step feasible efficient generalized method of moments estimator indicate that in countries with better access to education, the Internet contributes to economic growth, while mobile phones do not seem to do so. These results suggest that while education is regarded as pivotal for the Internet, it seems to be irrelevant for mobile phone usage.     

Performance of primary education in Burkina Faso: a multi-output stochastic frontier analysis

Primary education plays an important role in the development of human capital in developing countries. Consequently, Burkina Faso has taken steps to ensure both access to, and better quality of, primary education. However, comparisons between the different provinces of Burkina Faso reveal that there is a greater disparity between provinces in terms of access to, and the quality of, education, than there is in the provision of resources. Therefore, the objective of this study is to examine the efficiency of the resources used in providing primary education in Burkina Faso. We apply a stochastic frontier model in order to estimate the efficiency with which the 45 provinces of Burkina Faso provide primary education. The proposed model not only allows two outputs for primary education to be included, but also provides for an assessment of the factors that may affect inefficiency. Our results indicate that, overall, the primary education system in Burkina Faso operates at an efficiency level of approximately 63%. In addition, the living conditions of the population, as well as some factors internal to the education system, appear to have a relationship with the efficiency of primary education in the various provinces of Burkina Faso.     

BENFORD'S LAW AS AN INDICATOR OF SURVEY RELIABILITY—CAN WE TRUST OUR DATA?

This paper analyzes how closely different income measures conform to Benford's law, a mathematical predictor of probable first digit distribution across many sets of numbers. Because Benford's law can be used to test data set reliability, we use a Benford analysis to assess the quality of six widely used survey data sets. Our findings indicate that although income generally obeys Benford's law, almost all the data sets show substantial discrepancies from it, which we interpret as a strong indicator of reliability issues in the survey data. This result is confirmed by a simulation, which demonstrates that household level income data do not manifest the same poor performance as individual level data. This finding implies that researchers should focus on household level characteristics whenever possible to reduce observation errors.     

Dividend policy and investor pressure

The economics of dividend policy has focused on the single tight narrative that dividends keep managers honest, mitigating concerns that they over-invest. This article provides a critique of that agency narrative, arguing that pressure from short-term focused investors, executives and board members pushes the firm into preemptive actions of returning too much cash via dividends. We analyze three channels of influence for investor pressure through 1) threat of takeovers, 2) shareholder value oriented corporate governance, measured by director independence and board equity incentives, and 3) trading and institutional ownership patterns. We find that firms adopt a higher dividend payout to discourage takeover bids. Also, FTSE 100 firms, that are most focused on shareholder value governance in the form of equity-based compensation and a higher share of independent directors, display a higher dividend payout. Frequency of trading and ownership by transient investors seeking current profits also predict increased dividend payout. Traditional agency theory, focused on dividends as a tool for managerial discipline, is not strongly supported by the results, which rather support a narrative of short-term investor pressure on firms irrespective of investment opportunities.     

Exploring strategic priorities for regional agricultural R&D investments in East and Central Africa

The 11 countries of East and Central Africa have diverse but overlapping agroclimatic conditions, and could potentially benefit from spillovers of agricultural technology across country borders. This article uses high‐resolution spatial data on actual and potential yields for 15 major products across 12 development domains to estimate the total benefits available from the spread of new agricultural technologies around the region. Market responses and welfare gains are estimated using the Dynamic Research Evaluation for Management model, taking account of current and future projections of local and international demand. Results suggest which crops, countries, and agroclimatic regions offer the largest total benefits. Downloadable data and program files permit different assumptions and additional information to be considered in the ongoing process of strategic priority setting.     

Size and liquidity effects in Japanese regional stock markets

This paper assesses the effectiveness of traded turnover, Amihud (2002) and Liu (2006) metrics in measuring illiquidity, as used in a multifactor CAPM. The performance of this model is contrasted using a unique sample from Japan’s regional stock exchanges, namely Sapporo, Nagoya, Fukuoka, Osaka and Tokyo. The evidence suggests that size effects are important in Tokyo, liquidity plays a more important role in the conditional modelling of returns particularly in the smaller markets of Sapporo, Fukuoka and Nagoya where costs of equity are highest.     

Green Innovation and Finance in Asia

Green innovation and green finance are two key components of sustainable development. In the most populous, fastest‐growing region in the world, Asian countries are pressed to maintain economic growth while addressing climate change and environmental externalities. Japan, South Korea, and China have each implemented policies to promote green innovation and finance conducive to such ends. While each country possesses unique capabilities, the extent to which they can promote environmentally adjusted multifactor productivity growth, green patent registrations, green bond issuances, green foreign direct investment, and environmental, social, and governance information disclosures stands to impact on their shifts to sustainable growth paradigms.