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On the Role of Community Management in Correcting Market Failures of Rural Developing Areas: Evidence from a Randomized Field Experiment of COGES Project in Burkina Faso

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  • Sawada, Yasuyuki
  • Aida, Takeshi
  • Griffen, Andrew
  • Kazianga, Harounan
  • Kozuka, Eiji
  • Nogushi, Haruko
  • Todo, Yasuyuki

Abstract

We estimate the short-term impacts of a school-based management program in Burkina Faso in a range of outcomes that include education, voluntary contribution to public goods, participation in informal saving groups, and health. Evaluated at the control average, COGES increases the voluntary contributions to public goods by 15.90%. Participation in informal saving groups increases by 0.016 percent for the lowest income group, and enrollment in school increases by 7.1%. Overall the findings are consistent with the observation that social capital, strengthened by SBM, plays a critical complementary role in correcting financial market failures in low income economies. The results also demonstrate that impact evaluation of SBM that focus only on education are likely to undervalue the overall effects of SBMS.

Suggested Citation

  • Sawada, Yasuyuki & Aida, Takeshi & Griffen, Andrew & Kazianga, Harounan & Kozuka, Eiji & Nogushi, Haruko & Todo, Yasuyuki, 2016. "On the Role of Community Management in Correcting Market Failures of Rural Developing Areas: Evidence from a Randomized Field Experiment of COGES Project in Burkina Faso," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236323, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea16:236323
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    References listed on IDEAS

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    1. Yujiro Hayami, 2009. "Social Capital, Human Capital and the Community Mechanism: Toward a Conceptual Framework for Economists," Journal of Development Studies, Taylor & Francis Journals, vol. 45(1), pages 96-123.
    2. Ghazala Mansuri & Vijayendra Rao, 2013. "Localizing Development : Does Participation Work?," World Bank Publications, The World Bank, number 11859, November.
    3. Krueger, Anne O, 1990. "Government Failures in Development," Journal of Economic Perspectives, American Economic Association, vol. 4(3), pages 9-23, Summer.
    4. Ahmed Mushfiq Mobarak & Mark R. Rosenzweig, 2013. "Informal Risk Sharing, Index Insurance, and Risk Taking in Developing Countries," American Economic Review, American Economic Association, vol. 103(3), pages 375-380, May.
    5. Manuela Angelucci & Giacomo De Giorgi, 2009. "Indirect Effects of an Aid Program: How Do Cash Transfers Affect Ineligibles' Consumption?," American Economic Review, American Economic Association, vol. 99(1), pages 486-508, March.
    6. Benjamin Feigenberg & Erica Field & Rohini Pande, 2013. "The Economic Returns to Social Interaction: Experimental Evidence from Microfinance," Review of Economic Studies, Oxford University Press, vol. 80(4), pages 1459-1483.
    7. Sawada, Yasuyuki & Aida, Takeshi & Griffen, Andrew S & Kozuka, Eiji & Noguchi, Haruko & Todo, Yasuyuki, 2016. "Election, Implementation, and Social Capital in SchoolBased Management: Evidence from a Randomized Field Experiment on the COGES Project in Burkina Faso," Working Papers 120, JICA Research Institute.
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    Keywords

    Institutional and Behavioral Economics; International Development; Public Economics;

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