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Do in-kind transfers damage local markets? The case of TOMS shoe donations in El Salvador

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  • Bruce Wydick
  • Elizabeth Katz
  • Brendan Janet

Abstract

We carry out a cluster randomised trial among 979 households in rural El Salvador to test whether shoe donations exhibit negative impacts on local shoe markets. Households in half of the communities were given a pair of children's shoes at baseline (treatment communities), while all households were given coupons that could be used for shoe purchases at a local shoe store. Although point estimates on coupon redemption and difference-in-difference estimations indicate shoe purchases to be slightly lower among households receiving the donated shoes, we find no statistically significant difference in market shoe purchases between treatment and control households.

Suggested Citation

  • Bruce Wydick & Elizabeth Katz & Brendan Janet, 2014. "Do in-kind transfers damage local markets? The case of TOMS shoe donations in El Salvador," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 6(3), pages 249-267, September.
    • Handle: RePEc:taf:jdevef:v:6:y:2014:i:3:p:249-267
    DOI: 10.1080/19439342.2014.919012
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    References listed on IDEAS

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    1. Michael A. Clemens & Steven Radelet & Rikhil Bhavnani, 2004. "Counting chickens when they hatch: The short-term effect of aid on growth," International Finance 0407010, University Library of Munich, Germany.
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    Cited by:

    1. Garret Christensen & Edward Miguel, 2018. "Transparency, Reproducibility, and the Credibility of Economics Research," Journal of Economic Literature, American Economic Association, vol. 56(3), pages 920-980, September.
    2. Philip T. Roundy & Michaël Bonnal, 2017. "The Singularity of Social Entrepreneurship: Untangling its Uniqueness and Market Function," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 26(2), pages 137-162, September.
    3. Quan Zhou & Tava Lennon Olsen, 2023. "Modeling the effects of dated medical supplies donation on recipient countries," Production and Operations Management, Production and Operations Management Society, vol. 32(1), pages 116-130, January.

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