Firm-level data for the manufacturing sector in Africa, presented in this paper, shows very low levels of investment. A positive effect from profits onto investment is identified in a flexible accelerator specification of the investment function controlling for firm fixed effects. There is...

Poor people often do not make investments, even when returns are high.  One possible explanation is that they have low aspirations and form mental models which ignore some options for investment.  This paper reports on findings of an innovative experiment to test this in rural Ethiopia. ...

With serious impacts of climate change looming in a few decades, but currrent poverty still high in the developing word, we ask how to spend development aid earmarked for the poor.  Poverty reduction tends to be strongly linked to economic growth, but growth impacts the environment and...

Agriculture is the largest sector in most sub-Saharan economies in terms of employment, and it plays an important role in supplying food and export earnings.  Rural poverty rates remain high, and labor productivity is strikingly low.  This paper asks how these factors shape the role of...

We report on a randomized field experiment using price incentives to address both economic and gender inequality in land tenure formalization.  During the 1990s and 2000s, nearly two dozen African countries proposed de jure land reforms extending access to formal, freehold land tenure to...

This paper examines the contractual practices of African manufacturing firms using survey data collected in Burundi, Cameroon, Cote d`Ivoire, Kenya, Zambia, and Zimbabwe. Descriptive statistics and econometric results are presented. They show that contractual flexibility is pervasive and that...

This paper presents unique evidence that orphanhood matters in the long-run for health and education outcomes, in a region of Northwestern Tanzania. We study a sample of 718 non-orphaned children surveyed in 1991-94, who were traced and reinterviewed as adults in 2004. A large proportion, 19...