IDEAS home Printed from https://ideas.repec.org/a/wly/povpop/v3y2011i3p1-36.html
   My bibliography  Save this article

Cash Transfers and Economic Growth: A Mixed Methods Analysis of Transfer Recipients and Business Owners in Malawi

Author

Listed:
  • Candace M. Miller

Abstract

Social protection policies that simultaneously reduce poverty and stimulate economic growth and development will be transformational for direct recipients and disadvantaged communities. This study assessed whether the Malawi Cash Transfer stimulates economic growth in the communities where it is operational. Data collection was conducted in Mchinji Malawi from 2007‐2009. This study is based on data from two sources including 1) a randomized community control trial designed to measure the impact of the cash transfer and 2) qualitative interviews with business owners. Over the course of one year, the cash transfer intervention group had increased demand for and increased expenditures on foods, basic necessities, livestock, healthcare, and schooling supplies versus the comparison group whose expenditures remained low throughout the study. Additionally, cash transfer households invested in productive assets and farming equipment, which led to greater agricultural production, consumption and sales. The majority of business‐owner respondents confirmed that transfer recipients are frequent customers and reported that sales to transfer recipients were an important part of their business. Respondents reported that the transfer strengthened local markets by providing a steady source of customers and cash, with reliable sales even during the rainy season. Business owners grew their businesses, earned additional profits and some made investments in infrastructure and capital. This study yields insights into the mechanisms by which cash transfers impact economic growth and contributes to the discourse on social protection strategies. Once the cash transfer scheme is operational throughout Malawi, it appears as though there will be important impacts for recipients, non‐recipients and local businesses. Findings from this study may be applicable throughout resource‐poor countries in Africa. Still, continued follow up and larger studies are needed to determine the consistency and scale of impacts on economic growth and development.

Suggested Citation

  • Candace M. Miller, 2011. "Cash Transfers and Economic Growth: A Mixed Methods Analysis of Transfer Recipients and Business Owners in Malawi," Poverty & Public Policy, John Wiley & Sons, vol. 3(3), pages 1-36, September.
    • Handle: RePEc:wly:povpop:v:3:y:2011:i:3:p:1-36
    DOI: 10.2202/1944-2858.1147
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1944-2858.1147
    Download Restriction: no
    File URL: https://libkey.io/10.2202/1944-2858.1147?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Paul Mosley & Robert Holzmann & Steen Jorgensen, 1999. "Social protection as social risk management: conceptual underpinnings for the social protection sector strategy paper," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(7), pages 1005-1027.
    2. Hoddinott, John & Skoufias, Emmanuel, 2004. "The Impact of PROGRESA on Food Consumption," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 37-61, October.
    3. Emmanuel Skoufias & Vincenzo Di Maro, 2008. "Conditional Cash Transfers, Adult Work Incentives, and Poverty," Journal of Development Studies, Taylor & Francis Journals, vol. 44(7), pages 935-960.
    4. Simon Davies & James Davey, 2008. "A Regional Multiplier Approach to Estimating the Impact of Cash Transfers on the Market: The Case of Cash Transfers in Rural Malawi," Development Policy Review, Overseas Development Institute, vol. 26(1), pages 91-111, January.
    5. Candace M. Miller & Maxton Tsoka & Kathryn Reichert, 2010. "Targeting Cash to Malawi's Ultra-Poor: A Mixed Methods Evaluation," Development Policy Review, Overseas Development Institute, vol. 28(4), pages 481-502, July.
    6. Ariel Fiszbein & Norbert Schady & Francisco H.G. Ferreira & Margaret Grosh & Niall Keleher & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications - Books, The World Bank Group, number 2597, December.
    7. repec:ilo:ilowps:366683 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ebenezer Owusu‐Addo & Andre M. N. Renzaho & Paul Sarfo‐Mensah & Yaw A. Sarpong & William Niyuni & Ben J. Smith, 2023. "Sustainability of cash transfer programs: A realist case study," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 173-198, June.
    2. Jean A. Junior & Arlene M. Katz & Roy Ahn, 2016. "The Perspectives of Young Women in Rural Western Kenya on Unconditional Cash Transfers," Poverty & Public Policy, John Wiley & Sons, vol. 8(1), pages 72-94, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Miguel Nino-Zarazua, 2011. "Mexico’s Progresa-Oportunidades and the emergence of Social Assistance in Latin America," Global Development Institute Working Paper Series 14211, GDI, The University of Manchester.
    2. Orazio P. Attanasio & Valérie Lechene, 2014. "Efficient Responses to Targeted Cash Transfers," Journal of Political Economy, University of Chicago Press, vol. 122(1), pages 178-222.
    3. Rafael Novella & Laura Ripani & Claudia Vazquez, 2021. "Conditional cash transfers, female bargaining power and parental labour supply," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(2), pages 422-436, March.
    4. Harold Alderman & Ruslan Yemtsov, 2014. "How Can Safety Nets Contribute to Economic Growth?," The World Bank Economic Review, World Bank, vol. 28(1), pages 1-20.
    5. Barrientos, Armando, 2012. "Social Transfers and Growth: What Do We Know? What Do We Need to Find Out?," World Development, Elsevier, vol. 40(1), pages 11-20.
    6. Solomon Asfaw & Silvio Daidone & Benjamin Davis & Josh Dewbre & Alessandro Romeo & Paul Winters & Katia Covarrubias & Habiba Djebbari, 2012. "Analytical Framework for Evaluating the Productive Impact of Cash Transfer Programmes on Household Behaviour – Methodological Guidelines for the From Protection to Production Project," Working Papers 101, International Policy Centre for Inclusive Growth.
    7. Paul J. Gertler & Sebastian W. Martinez & Marta Rubio-Codina, 2012. "Investing Cash Transfers to Raise Long-Term Living Standards," American Economic Journal: Applied Economics, American Economic Association, vol. 4(1), pages 164-192, January.
    8. Rafael Perez Ribas & Fabio Veras Soares & Clarissa Gondim Teixeira & Elydia Silva & Guilherme Issamu Hirata, 2010. "Beyond Cash: Assessing Externality and Behaviour Effects of Non-Experimental Cash Transfers," Working Papers 65, International Policy Centre for Inclusive Growth.
    9. Kilburn, Kelly & Handa, Sudhanshu & Angeles, Gustavo & Mvula, Peter & Tsoka, Maxton, 2017. "Short-term impacts of an unconditional cash transfer program on child schooling: Experimental evidence from Malawi," Economics of Education Review, Elsevier, vol. 59(C), pages 63-80.
    10. Verónica Amarante & Martín Brun, 2018. "Cash Transfers in Latin America: Effects on Poverty and Redistribution," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2018), pages 1-31, November.
    11. Victoria Menil, 2015. "Missed Opportunities in Global Health: Identifying New Strategies to Improve Mental Health in LMICs," Working Papers id:7987, eSocialSciences.
    12. Fernandez, Luisa & Olfindo, Rosechin, 2011. "Overview of the Philippines'Conditional Cash Transfer Program : the Pantawid Pamilyang Pilipino Program (Pantawid Pamilya)," Social Protection Discussion Papers and Notes 62879, The World Bank.
    13. Bosch, Mariano & Manacorda, Marco, 2012. "Social policies and labor market outcomes in Latin America and the Caribbean: a review of the existing evidence," LSE Research Online Documents on Economics 58003, London School of Economics and Political Science, LSE Library.
    14. Scarlato, Margherita & D'Agostino, Giorgio, 2016. "The political economy of cash transfers: a comparative analysis of Latin American and sub-Saharan African experiences," IDOS Discussion Papers 6/2016, German Institute of Development and Sustainability (IDOS).
    15. María Alzúa & Guillermo Cruces & Laura Ripani, 2013. "Welfare programs and labor supply in developing countries: experimental evidence from Latin America," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1255-1284, October.
    16. de Brauw, Alan & Hoddinott, John, 2011. "Must conditional cash transfer programs be conditioned to be effective? The impact of conditioning transfers on school enrollment in Mexico," Journal of Development Economics, Elsevier, vol. 96(2), pages 359-370, November.
    17. Blumenstock, Joshua & Bjorkegren, Dan & Knight, Samsun, 2022. "(Machine) Learning What Policies Value," CEPR Discussion Papers 17364, C.E.P.R. Discussion Papers.
    18. Fisher, Eleanor & Attah, Ramlatu & Barca, Valentina & O'Brien, Clare & Brook, Simon & Holland, Jeremy & Kardan, Andrew & Pavanello, Sara & Pozarny, Pamela, 2017. "The Livelihood Impacts of Cash Transfers in Sub-Saharan Africa: Beneficiary Perspectives from Six Countries," World Development, Elsevier, vol. 99(C), pages 299-319.
    19. Kitaura, Koji & Miyazawa, Kazutoshi, 2021. "Inequality and conditionality in cash transfers: Demographic transition and economic development," Economic Modelling, Elsevier, vol. 94(C), pages 276-287.
    20. Acosta, Pablo A. & Leite, Phillippe & Rigolini, Jamele, 2011. "Should Cash Transfers Be Confined to the Poor? Implications for Poverty and Inequality in Latin America," IZA Policy Papers 34, Institute of Labor Economics (IZA).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:povpop:v:3:y:2011:i:3:p:1-36. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1944-2858 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.