M. E. Rochina Barrachina, Jorge Antonio Rodríguez Moreno
We analyze the effectiveness of R&D subsidies on firms' R&D efforts in a developing country like Ecuador. We use the National Survey of Innovation Activities. Methodologically, we employ a structural framework that considers simultaneity and selection issues. Our results indicate that subsidies have an extensive margin effect, as they encourage firms to carry out R&D activities, and an intensive margin effect, as they increase firms' total innovation effort. However, this is compatible with partial crowding‐out of private efforts by public funds. One possible mechanism to explain this result is that, in developing countries with less developed capital markets, firms with financial constraints may divert part of the subsidy to invest in fixed capital. We find some support for this hypothesis, as the most financially constrained firms both explain the crowding‐out effect and increase their fixed capital investment when receiving a subsidy. For other firms, we observe crowding‐in, and their fixed capital investment remains insensitive to the subsidy.
{"title":"A possible mechanism for partial crowding‐out of R&D subsidies in developing countries","authors":"M. E. Rochina Barrachina, Jorge Antonio Rodríguez Moreno","doi":"10.1111/rode.13038","DOIUrl":"https://doi.org/10.1111/rode.13038","url":null,"abstract":"We analyze the effectiveness of R&D subsidies on firms' R&D efforts in a developing country like Ecuador. We use the National Survey of Innovation Activities. Methodologically, we employ a structural framework that considers simultaneity and selection issues. Our results indicate that subsidies have an extensive margin effect, as they encourage firms to carry out R&D activities, and an intensive margin effect, as they increase firms' total innovation effort. However, this is compatible with partial crowding‐out of private efforts by public funds. One possible mechanism to explain this result is that, in developing countries with less developed capital markets, firms with financial constraints may divert part of the subsidy to invest in fixed capital. We find some support for this hypothesis, as the most financially constrained firms both explain the crowding‐out effect and increase their fixed capital investment when receiving a subsidy. For other firms, we observe crowding‐in, and their fixed capital investment remains insensitive to the subsidy.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-08-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42057201","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A popular interpretation of “evidence‐based” decision‐making is “rely (only) on the rigorous evidence” (RORE) via “systematic” reviews that: use objective protocols to generating the potentially relevant papers from the literature; then filter those to retain only the small subset that provide impact estimates regarded as “rigorous”; and summarize only those estimates. I use two sets of cross‐country impact estimates—on wage gains for migrants and private school learning gains—to illustrate this seemingly attractive approach is both empirically and conceptually unsound. First, the cross‐country variation in the rigorous estimates of impact is very large, which implies the average(s) from a systematic review is of little predictive use. In both empirical examples the “systematic review of the rigorous estimates” approach leads to worse predictions of impact across countries than the naïve use of country‐specific ordinary least squares estimates. Second, I contrast a systematic review—RORE approach with an “understanding” approach—which seeks to encompass all of the available evidence into coherent understandings in forming judgments. In both examples the notion that the impact effects are constant across countries—“external validity”—is easily rejected. Insisting on privileged reliance on “rigorous” estimates in making context‐specific decisions is logically incoherent and deeply anti‐scientific.
{"title":"“Rely (only) on the rigorous evidence” is bad advice","authors":"L. Pritchett","doi":"10.1111/rode.13037","DOIUrl":"https://doi.org/10.1111/rode.13037","url":null,"abstract":"A popular interpretation of “evidence‐based” decision‐making is “rely (only) on the rigorous evidence” (RORE) via “systematic” reviews that: use objective protocols to generating the potentially relevant papers from the literature; then filter those to retain only the small subset that provide impact estimates regarded as “rigorous”; and summarize only those estimates. I use two sets of cross‐country impact estimates—on wage gains for migrants and private school learning gains—to illustrate this seemingly attractive approach is both empirically and conceptually unsound. First, the cross‐country variation in the rigorous estimates of impact is very large, which implies the average(s) from a systematic review is of little predictive use. In both empirical examples the “systematic review of the rigorous estimates” approach leads to worse predictions of impact across countries than the naïve use of country‐specific ordinary least squares estimates. Second, I contrast a systematic review—RORE approach with an “understanding” approach—which seeks to encompass all of the available evidence into coherent understandings in forming judgments. In both examples the notion that the impact effects are constant across countries—“external validity”—is easily rejected. Insisting on privileged reliance on “rigorous” estimates in making context‐specific decisions is logically incoherent and deeply anti‐scientific.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-08-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47114384","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Effects of regulatory burden and corruption on firm performance: Evidence from Moldova","authors":"S. Tan, Dea Tusha","doi":"10.1111/rode.13033","DOIUrl":"https://doi.org/10.1111/rode.13033","url":null,"abstract":"","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-07-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46705574","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Financial inclusion, gender gaps and agricultural productivity in Mali","authors":"Babajide Fowowe","doi":"10.1111/rode.13034","DOIUrl":"https://doi.org/10.1111/rode.13034","url":null,"abstract":"","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-07-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45752539","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Do chairmen with China's Great Famine experience in early‐life affect firm tax avoidance activities?","authors":"Siying Yang, Dawei Feng, Junbing Xu","doi":"10.1111/rode.13035","DOIUrl":"https://doi.org/10.1111/rode.13035","url":null,"abstract":"","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-07-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44768508","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A. Akter, M. S. Jahan, Xianhui Geng, Gershom Endelani Mwalupaso, F. Hoque, A. Adeel
{"title":"Building smallholder farmers' capacity to adopt climate‐smart agricultural practices in flood prone areas: Lessons from Bangladesh","authors":"A. Akter, M. S. Jahan, Xianhui Geng, Gershom Endelani Mwalupaso, F. Hoque, A. Adeel","doi":"10.1111/rode.13031","DOIUrl":"https://doi.org/10.1111/rode.13031","url":null,"abstract":"","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-07-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45213862","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
How was life expectancy in Iran affected by the Islamic Revolution and subsequent war with Iraq? This study examines the joint effect of regime change and the war against Iraq on life expectancy in Iran between 1978 and 1988. If there had been no revolution and war in Iran, how would the life expectancy of Iranians have developed? To answer this question, we use a synthetic control model to construct a counterfactual Iran based on a weighted average of other comparable countries, which reproduces the situation of pre-revolution Iran but does not experience the revolution and war. We then compare the life expectancies of the counterfactual and actual Iran that underwent a regime change and war with Iraq. Our results indicate that an average Iranian's total life expectancy would have been approximately five years longer without the revolution and war. The revolution had a moderate long-term impact on total life expectancy at birth, with the most significant influence being attributed to the war itself, particularly on male life expectancy. Our main findings are robust to a series of tests, including placebo tests. We investigate possible reasons that may explain the impact on longevity.
{"title":"Years of life lost to revolution and war in Iran","authors":"Mohammad Reza Farzanegan","doi":"10.1111/rode.13030","DOIUrl":"https://doi.org/10.1111/rode.13030","url":null,"abstract":"How was life expectancy in Iran affected by the Islamic Revolution and subsequent war with Iraq? This study examines the joint effect of regime change and the war against Iraq on life expectancy in Iran between 1978 and 1988. If there had been no revolution and war in Iran, how would the life expectancy of Iranians have developed? To answer this question, we use a synthetic control model to construct a counterfactual Iran based on a weighted average of other comparable countries, which reproduces the situation of pre-revolution Iran but does not experience the revolution and war. We then compare the life expectancies of the counterfactual and actual Iran that underwent a regime change and war with Iraq. Our results indicate that an average Iranian's total life expectancy would have been approximately five years longer without the revolution and war. The revolution had a moderate long-term impact on total life expectancy at birth, with the most significant influence being attributed to the war itself, particularly on male life expectancy. Our main findings are robust to a series of tests, including placebo tests. We investigate possible reasons that may explain the impact on longevity.","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":"206 1","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-07-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138540591","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Whither ethics in research? Randomized controlled trials at the nexus of technocratization and Eurocentrism","authors":"Bikalp Chamola","doi":"10.1111/rode.13028","DOIUrl":"https://doi.org/10.1111/rode.13028","url":null,"abstract":"","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-07-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44383457","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Poor economics and its missing mechanisms: The case for causal mediation","authors":"S. Sushanth Kumar, Ragupathy Venkatachalam","doi":"10.1111/rode.13029","DOIUrl":"https://doi.org/10.1111/rode.13029","url":null,"abstract":"","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-07-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42036566","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Effects of free textbooks on academic performance: Evidence from China's compulsory education","authors":"Xinran Liu","doi":"10.1111/rode.13032","DOIUrl":"https://doi.org/10.1111/rode.13032","url":null,"abstract":"","PeriodicalId":47635,"journal":{"name":"Review of Development Economics","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2023-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41480439","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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