Micro Economics

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    Crop Diversification, Household Nutrition and Child Growth: Empirical Evidence from Ethiopia
    (African Economic Research Consortium, 2023-08-08) Tesfaye, Wondimagegn Mesfin
    Recently, there has been a resurgence of interest in crop diversification as a strategy to deal with a variety of issues, including malnutrition in the context of a changing climate and poorly developed markets. However, the empirical evidence base to justify this policy position is thin. This research seeks to contribute to the growing literature and the policy discourse by providing empirical evidence on the impact of crop diversification on child growth using panel survey data, combined with historical weather data. The study finds that crop diversification has a positive but small impact on child growth. Results from analysis of heterogeneous effects show that the positive effects are more pronounced in areas with limited access to markets. The study demonstrates that the positive effects of crop diversification on child growth could be mediated through its positive impacts on household diet diversity, diet quality and income.
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    The Impact of Conflict on Child Health Outcomes: Micro-Level Evidence from Nigeria
    (African Economic Research Consortium, 2023-08-08) Oyinlola, Mutiu A.; Adeniyi, Oluwatosin; Adedeji, Abdulfatai A. Adedeji; Lipede, Omolola M.
    Globally, the prevalence of conflicts has taken different dimensions due to exposure to different forms of conflict. Also, extant studies have linked conflict with health outcomes. However, existing studies face the challenge of comprehensive information on different conflict types. Thus, this study provides a comprehensive analysis of the impact of conflicts on child well-being in Nigeria. To achieve the goal, it classified the conflicts into three categories: aggregate, insurgency/terrorism, and herdsmen/farmers’ conflict. Furthermore, robust data are used by exploring four DHS waves (2003, 2008, 2013, and 2018) and integrating three conflict datasets using the MELTT technique. We present three steps of analysis for conflicts and child well-being based on this robust information. The impact of aggregate conflicts on child health outcomes, mechanisms, and across different groups was first investigated. Second, the impact of insurgency/terrorism on child health outcomes, mechanisms, and across different groups was examined. Third, the impact of herdsmen/farmers' conflict on child health outcomes, mechanisms, and across various groups was investigated. The results of a difference-in-difference approach suggest that proximity and exposure to different types of conflict worsened child health outcomes (infant mortality, height-for-age z-score, weight-for-age z-score and weight-for-height z-score). Also, vaccination,hospital visitation, and mother’s education are significantly affected by conflict types. Proximity and exposure to different conflict types forced people to migrate to less conflict-affected areas.
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    Impact of Access to Microcredit on the Well-being of Households and Poverty Change in Cameroon: 2001-200
    (AERC, 2021-04-19) Ngah, Otabela Nadège
    Using data from the second and third Cameroonian household surveys, this study analyzes the relationship between access to microcredit, household well-being, and poverty change in Cameroon. It uses a combination of two methods of analysis: the instrumental variable method for controlling the potential endogeneity of access to increased microcredit by correcting for selection bias; and a method for breaking down poverty change into intra-growth, intra-redistribution, and inter-sector mobility components based on Shapley's value. The latter is based on comparison of evidencebased and hypothetical/non-factual distributions. The key findings reveal that access to microcredit: (i) significantly and positively affects the level of well-being of households and financial inclusion, particularly through education; (ii) has an impact on poverty change and that this effect is brought about by the redistribution component and primary sector; (iii) positively and significantly influences the intra-sector redistribution component of poverty change through the intra-sector growth and mobility components.
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    The Effect of Social Capital on Households’ Access to Microcredit in Cameroon in 2001 and 2007
    (African Economic Research consortium, 2020-11-07) Metseyem, Clarisse
    The aim of this study is to identify the determinants of households’ access to microcredit in Cameroon; in particular the effect of social capital on their access to microcredit in 2001 and 2007. The study is based on data collected during the Cameroon household surveys (ECAM II and III) conducted by the National Institute of Statistics (Institut National de la Statistique, INS) in 2001 and 2007. The Multiple Component Analysis (MCA) was used to construct the social capital index while the probit model was used for modelling. The Heckman two-step procedure was used to deal with the selection bias. The study found that social capital increased the probability of households having access to microcredit. An increase in this probability was observed for the years under study (4.2% for 2001 and 9.52% for 2007). It rose as a function of the level of household income (from the first to the fifth expenditure quintile). These findings suggest that there is a need for encouraging stakeholders (both private individuals and enterprises) to group together into networks.
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    Analysis of the Cost-Efficiency of Microfinance Institutions in the West African Economic Monetary Union Area
    (African Economic Research consortium, 2016-09-30) Togba, Leadaut Edith Prisca
    The cost-efficiency of microfinance institutions (MFIs) has emerged as an issue crucial to their survival and the continuity of their services. The present study uses the stochastic frontier method to analyse the levels and determinants of cost-efficiency of a sample of microfinance institutions operating from the West African Economic and Monetary Union (WAEMU) area. For the 2000–2008 period, these MFIs were found to have functioned in an ineffective way in terms of minimizing their costs. Factors influencing cost-efficiency include the age and type of MFI. The study’s results also reveal that the number of female borrowers, the MFI’s financial performance, level of capitalization, geographical location, and size were explanatory factors for the cost-efficiency of the MFIs studied.