IDEAS home Printed from https://ideas.repec.org/p/bwp/bwppap/10609.html
   My bibliography  Save this paper

Do transfers generate local economy effects?

Author

Listed:
  • Armando Barrientos
  • Rachel Sabatés-Wheeler

Abstract

The paper examines local economy effects of social transfers, by focusing on food consumption and asset holdings of non-eligible households in rural Mexico following the introduction of PROGRESA in 1997. The quasi-experimental nature of the evaluation data collected for the purposes of evaluating the impact of PROGRESA enables the quantification of this impact. In the paper we compare welfare indicators among noneligible households in treatment areas and control areas. The analysis finds that noneligible households in treatment areas show significantly higher levels of food consumption and asset holdings following the introduction of PROGRESA, compared to non-eligible households in control areas. These results are interpreted to suggest that transfers in poor rural areas in Mexico enable agents to interact more strategically such that non-beneficiaries, as well as beneficiaries, reap consumption and production advantages.

Suggested Citation

  • Armando Barrientos & Rachel Sabatés-Wheeler, 2009. "Do transfers generate local economy effects?," Global Development Institute Working Paper Series 10609, GDI, The University of Manchester.
    • Handle: RePEc:bwp:bwppap:10609
    as

    Download full text from publisher

    File URL: http://hummedia.manchester.ac.uk/institutes/gdi/publications/workingpapers/bwpi/bwpi-wp-10609.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Morley, Samuel & David Coady, 2003. "From Social Assistance to Social Development: Targeted Education Subsidies in Developing Countries," Peterson Institute Press: All Books, Peterson Institute for International Economics, number cgd376, October.
    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. Orazio Attanasio & Valerie Lechene, 2002. "Tests of Income Pooling in Household Decisions," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(4), pages 720-748, October.
    4. Christopher B. Barrett, 2005. "Rural poverty dynamics: development policy implications," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 45-60, January.
    5. Sadoulet, Elisabeth & Janvry, Alain de & Davis, Benjamin, 2001. "Cash Transfer Programs with Income Multipliers: PROCAMPO in Mexico," World Development, Elsevier, vol. 29(6), pages 1043-1056, June.
    6. Laura B. Rawlings, 2005. "Evaluating the Impact of Conditional Cash Transfer Programs," The World Bank Research Observer, World Bank, vol. 20(1), pages 29-55.
    7. Jishnu Das, 2005. "Reassessing Conditional Cash Transfer Programs," The World Bank Research Observer, World Bank, vol. 20(1), pages 57-80.
    8. Dasgupta, Partha, 1997. "Nutritional status, the capacity for work, and poverty traps," Journal of Econometrics, Elsevier, vol. 77(1), pages 5-37, March.
    9. 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.
    10. Christopher B. Barrett & John G. McPeak, 2006. "Poverty Traps and Safety Nets," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: Alain Janvry & Ravi Kanbur (ed.), Poverty, Inequality and Development, chapter 0, pages 131-154, Springer.
    11. Angelucci, Manuela & De Giorgi, Giacomo, 2006. "Indirect Effects of an Aid Program: The Case of Progresa and Consumption," IZA Discussion Papers 1955, Institute of Labor Economics (IZA).
    12. Skoufias, Emmanuel & Davis, Benjamin & de la Vega, Sergio, 2001. "Targeting the Poor in Mexico: An Evaluation of the Selection of Households into PROGRESA," World Development, Elsevier, vol. 29(10), pages 1769-1784, October.
    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. Nora Lustig, 2019. "Measuring the Distributional Impact of Taxation and Public Spending: The Practice of Fiscal Incidence Analysis," Commitment to Equity (CEQ) Working Paper Series 24, Tulane University, Department of Economics.
    2. Begum, Ismat & Alam, Mohammad & Haque, M., 2015. "Productive Impacts of Cash Transfer and Conditional Cash Transfer Programs in Bangladesh: Propensity Score Matching Analysisi," 2015 Conference, August 9-14, 2015, Milan, Italy 211215, International Association of Agricultural Economists.
    3. Nora Lustig, 2011. "The Knowledge Bank and Poverty Reduction," Working Papers 1111, Tulane University, Department of Economics.
    4. Armando Barrientos & Rachel Sabates-Wheeler, 2011. "Strategic complementarities and social transfers: how do PROGRESA payments impact nonbeneficiaries?," Applied Economics, Taylor & Francis Journals, vol. 43(23), pages 3175-3185.
    5. Mideros A. & Gassmann F. & Mohnen P., 2013. "Estimation of rates of return of social protection instruments. Making the case for non-contributory social transfers in Cambodia," MERIT Working Papers 2013-063, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Nora Lustig, 2016. "Commitment to Equity Handbook. A Guide to Estimating the Impact of Fiscal Policy on Inequality and Poverty," Commitment to Equity (CEQ) Working Paper Series 1301, Tulane University, Department of Economics.

    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. 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.
    2. 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.
    3. Saeed, Muhammad Kashif & Hayat, Muhammad Azmat, 2020. "The Impact of Social Cash Transfers on Poverty in Pakistan-A Case Study of Benazir Income Support Programme," MPRA Paper 99805, University Library of Munich, Germany.
    4. Achyuta Adhvaryu & Teresa Molina & Anant Nyshadham & Jorge Tamayo, 2023. "Helping Children Catch Up: Early Life Shocks and the PROGRESA Experiment," The Economic Journal, Royal Economic Society, vol. 134(657), pages 1-22.
    5. John Maluccio, 2010. "The Impact of Conditional Cash Transfers on Consumption and Investment in Nicaragua," Journal of Development Studies, Taylor & Francis Journals, vol. 46(1), pages 14-38.
    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. Emanuela di Gropello, 2006. "Meeting the Challenges of Secondary Education in Latin America and East Asia : Improving Efficiency and Resource Mobilization," World Bank Publications - Books, The World Bank Group, number 7173, December.
    8. Seth R. Gitter & Bradford L. Barham, 2008. "Women's Power, Conditional Cash Transfers, and Schooling in Nicaragua," The World Bank Economic Review, World Bank, vol. 22(2), pages 271-290, May.
    9. Naschold, Felix, 2012. "“The Poor Stay Poor”: Household Asset Poverty Traps in Rural Semi-Arid India," World Development, Elsevier, vol. 40(10), pages 2033-2043.
    10. Handa, Sudhanshu & Peterman, Amber & Davis, Benjamin & Stampini, Marco, 2009. "Opening Up Pandora's Box: The Effect of Gender Targeting and Conditionality on Household Spending Behavior in Mexico's Progresa Program," World Development, Elsevier, vol. 37(6), pages 1129-1142, June.
    11. Fitz, Dylan, 2013. "Development Chutes and Ladders: A Joint Impact Evaluation of Asset and Cash Transfers in Brazil," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150254, Agricultural and Applied Economics Association.
    12. 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.
    13. Armando Barrientos & Jocelyn DeJong, 2006. "Reducing Child Poverty with Cash Transfers: A Sure Thing?," Development Policy Review, Overseas Development Institute, vol. 24(5), pages 537-552, September.
    14. Gustavo J. Bobonis, 2011. "The Impact of Conditional Cash Transfers on Marriage and Divorce," Economic Development and Cultural Change, University of Chicago Press, vol. 59(2), pages 281-312.
    15. Jesse Cunha, 2010. "Testing Paternalism: Cash vs. In-kind Transfer in Rural Mexico," Discussion Papers 09-021, Stanford Institute for Economic Policy Research.
    16. Melba V. Tutor, 2014. "The impact of the PhilippinesÕ conditional cash transfer program on consumption," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 51(1), pages 117-161, June.
    17. Brière, Bénédicte de la & Rawlings, Laura B., 2006. "Examining conditional cash transfer programs : a role for increased social inclusion?," Social Protection Discussion Papers and Notes 90341, The World Bank.
    18. Tommasi, Denni, 2019. "Control of resources, bargaining power and the demand of food: Evidence from PROGRESA," Journal of Economic Behavior & Organization, Elsevier, vol. 161(C), pages 265-286.
    19. Gustavo J. Bobonis & Melissa González-Brenes & Roberto Castro, 2013. "Public Transfers and Domestic Violence: The Roles of Private Information and Spousal Control," American Economic Journal: Economic Policy, American Economic Association, vol. 5(1), pages 179-205, February.
    20. Guy Stecklov & Paul Winters & Marco Stampini & Benjamin Davis, 2003. "Can Public Transfers Reduce Mexican Migration? A study based on randomized experimental data," Working Papers 03-16, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).

    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:bwp:bwppap:10609. 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: Rowena Harding (email available below). General contact details of provider: https://edirc.repec.org/data/wpmanuk.html .

    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.