Policy makers grapple with the optimal design of multidimensional strategies to improve poor households’ livelihoods. To address financial constraints, are capital injections needed, or is savings mobilization sufficient? This paper tests the direct effects and local spillovers of three instruments to relax financial constraints, each combined with micro-entrepreneurship training. “Cash grants” and “cash grants with repayment” directly inject capital, while “village savings and loan associations” (VSLAs) promote more efficient group saving. The randomized controlled trial took place in western regions of Côte d’Ivoire that were affected by a post-electoral crisis in 2011 and an earlier conflict. The interventions had differential effects on the dynamics of savings and productive asset accumulation. The cash grant modalities generated investments in startup capital, although nearly 30 percent of the grant was saved. In contrast, village savings and loan associations did not increase total savings but gradually induced investments, so that productive assets caught up with cash grant recipients after 15 months. Positive local spillovers on savings and independent activities were also observed. Yet, investments in independent activities were not sufficient to increase profits, possibly because they were limited due to high precautionary saving motives in the post-conflict study setting.
Repository name | URI |
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Reproducible Research Repository (World Bank) | https://reproducibility.worldbank.org |
Paper exhibits were reproduced on a computer with the following specifications:
– Windows 10 Enterprise, version 22H2
– Processor: Intel(R) Xeon(R) Gold 6226R CPU @ 2.90GHz 2.90 GHz (2 processors)
– Memory available: 128 GB
– Software version: Stata 18.0 MP
Runtime: 30 minutes
Since not all the data is publicly available, the package includes the code outputs obtained by the replicators in the folder "Outputs". These files can be used to review the results presented in the paper.
Data is not yet publicly available but is expected to be made available through the World Bank Microdata Library in the future.
Author | Affiliation | |
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Alicia Marguerie | World Bank | amarguerie@worldbank.org |
Patrick Premand | World Bank | ppremand@worldbank.org |
2024-11
Location | Code |
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Côte d’Ivoire | CIV |
The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.
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Modified BSD3 | https://opensource.org/license/bsd-3-clause/ |
Name | Affiliation | |
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Patrick Premand | World Bank | ppremand@worldbank.org |
Reproducibility WBG | World Bank | reproducibility@worldbank.org |
Name | Abbreviation | Affiliation | Role |
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Reproducibility WBG | DIME | World Bank - Development Impact Department | Verification and preparation of metadata |
2024-11-22
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