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Cash grants to manufacturers after Cyclone Idai: RCT evidence from Mozambique

Author

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  • Hanna Berkel
  • Peter Fisker
  • Finn Tarp

Abstract

In March 2019, Cyclone Idai hit central Mozambique and caused widespread damage, including businesses in the enterprise sector. We use panel data and a randomized controlled trial to estimate the impact of unconditional cash grants on micro enterprises and their recovery. We find that, on average, the cash grants had a positive effect on firm revenue, profits and savings, and the likelihood of having their roof repaired. The cash had a stronger impact in the more damaged city (Beira) compared to the less affected location (Chimoio) and was particularly effective for carpenters.

Suggested Citation

  • Hanna Berkel & Peter Fisker & Finn Tarp, 2021. "Cash grants to manufacturers after Cyclone Idai: RCT evidence from Mozambique," WIDER Working Paper Series wp-2021-87, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2021-87
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    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2021-87-cash-grants-manufacturers-Cyclone-Idai-RCT-evidence.pdf
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    References listed on IDEAS

    as
    1. Albert, Jose Ramon G. & Reyes, Celia M. & Reyes, Charina Cecille M., 2018. "Lessons on Providing Cash Transfers to Disaster Victims: A Case Study of UNICEF's Unconditional Cash Transfer Program for Super Typhoon Yolanda Victims," Discussion Papers DP 2018-04, Philippine Institute for Development Studies.
    2. Duflo, Esther & Glennerster, Rachel & Kremer, Michael, 2008. "Using Randomization in Development Economics Research: A Toolkit," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 61, pages 3895-3962, Elsevier.
    3. Sam Jones & John Page & Abebe Shimeles & Finn Tarp & John Page & Måns Söderbom, 2015. "Is Small Beautiful? Small Enterprise, Aid and Employment in Africa," African Development Review, African Development Bank, vol. 27(S1), pages 44-55, October.
    4. Christopher B. Barrett & Michael R. Carter, 2010. "The Power and Pitfalls of Experiments in Development Economics: Some Non-random Reflections," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(4), pages 515-548.
    5. Suresh De Mel & David McKenzie & Christopher Woodruff, 2012. "Enterprise Recovery Following Natural Disasters," Economic Journal, Royal Economic Society, vol. 122(559), pages 64-91, March.
    6. Celia M. Reyes & Jose Ramon G. Albert & Charina Cecille M. Reyes, 2018. "Lessons on Providing Cash Transfers to Disaster Victims: A Case Study of UNICEF’s Unconditional Cash Transfer Program for super typhoon Yolanda Victims," Working Papers id:12852, eSocialSciences.
    7. Ugo Gentilini, 2016. "The Other Side of the Coin," World Bank Publications - Books, The World Bank Group, number 24593, December.
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