IDEAS home Printed from https://ideas.repec.org/p/fpr/ifprid/1101.html
   My bibliography  Save this paper

Beyond fatalism: An empirical exploration of self-efficacy and aspirations failure in Ethiopia

Author

Listed:
  • Bernard, Tanguy
  • Dercon, Stefan
  • Taffesse, Alemayehu Seyoum

Abstract

Fatalism is considered pervasive, especially in many poor communities. In this paper, we explore whether fatalistic beliefs have implications for the attitudes and behavior of poor rural households toward investment in the future. To explore the idea of fatalism, we draw inspiration from theories in psychology focusing on the role of locus of control and self-efficacy and also from the theoretical framework of aspiration failure as developed in recent economic literature. Using survey data from rural Ethiopia, we find evidence of fatalistic beliefs among a substantial group of rural households, as well as indicators consistent with narrow aspirations gap and low self-efficacy. We also find that such beliefs consistently correlate with lower demand for credit, in terms of loan size, repayment horizon, and productive purposes.

Suggested Citation

  • Bernard, Tanguy & Dercon, Stefan & Taffesse, Alemayehu Seyoum, 2011. "Beyond fatalism: An empirical exploration of self-efficacy and aspirations failure in Ethiopia," IFPRI discussion papers 1101, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:ifprid:1101
    as

    Download full text from publisher

    File URL: http://www.ifpri.org/sites/default/files/publications/ifpridp01101.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. George A. Akerlof, 1997. "Social Distance and Social Decisions," Econometrica, Econometric Society, vol. 65(5), pages 1005-1028, September.
    2. Yamauchi, Futoshi, 2007. "Social learning, neighborhood effects, and investment in human capital: Evidence from Green-Revolution India," Journal of Development Economics, Elsevier, vol. 83(1), pages 37-62, May.
    3. Krishnan, P. & Krutikova, S., 2010. "Non-cognitive skill formation in poor neighbourhoods of urban India (updated 27-02-2012)," Cambridge Working Papers in Economics 1010, Faculty of Economics, University of Cambridge.
    4. Macours, Karen & Vakis, Renos, 2009. "Changing households'investments and aspirations through social interactions : evidence from a randomized transfer program," Policy Research Working Paper Series 5137, The World Bank.
    5. Banerjee, Abhijit Vinayak & Benabou, Roland & Mookherjee, Dilip (ed.), 2006. "Understanding Poverty," OUP Catalogue, Oxford University Press, number 9780195305203.
    6. Sourafel Girma & Abbi Kedir, 2005. "Heterogeneity in returns to schooling: Econometric evidence from Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 41(8), pages 1405-1416.
    7. Michael Kremer & Edward Miguel, 2003. "Networks, social learning, and technology adoption: The case of deworming drugs in kenya," Natural Field Experiments 00312, The Field Experiments Website.
    8. Hanming Fang & Glenn C. Loury, 2004. "Toward an Economic Theory of Dysfunctional Identity," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-146, Boston University - Department of Economics.
    9. Nava Ashraf & Dean Karlan & Wesley Yin, 2006. "Tying Odysseus to the Mast: Evidence From a Commitment Savings Product in the Philippines," The Quarterly Journal of Economics, Oxford University Press, pages 635-672.
    10. Dean Karlan & Jonathan Zinman, 2005. "Elasticities of Demand for Consumer Credit," Working Papers 926, Economic Growth Center, Yale University.
    11. Graham, Carol & Eggers, Andrew & Sukhtankar, Sandip, 2004. "Does happiness pay?: An exploration based on panel data from Russia," Journal of Economic Behavior & Organization, Elsevier, vol. 55(3), pages 319-342, November.
    12. Hoff, Karla & Pandey, Priyanka, 2004. "Belief systems and durable inequalities : an experimental investigation of Indian caste," Policy Research Working Paper Series 3351, The World Bank.
    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. Laura Camfield & Awae Masae & J. McGregor & Buapun Promphaking, 2013. "Cultures of Aspiration and Poverty? Aspirational Inequalities in Northeast and Southern Thailand," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(3), pages 1049-1072, December.
    2. Pasquier-Doumer, Laure & Risso Brandon, Fiorella, 2015. "Aspiration Failure: A Poverty Trap for Indigenous Children in Peru?," World Development, Elsevier, pages 208-223.
    3. repec:eee:deveco:v:127:y:2017:i:c:p:187-208 is not listed on IDEAS
    4. de Brauw, Alan & Gilligan, Daniel, 2011. "Using the regression discontinuity design with implicit partitions: The impacts of comunidades solidarias rurales on schooling in El Salvador," IFPRI discussion papers 1116, International Food Policy Research Institute (IFPRI).
    5. Mekonnen, Daniel & Gerber, Nicolas, 2015. "The Effect of Aspirations on Agricultural Innovations in Rural Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 211680, International Association of Agricultural Economists.
    6. repec:dau:papers:123456789/12016 is not listed on IDEAS
    7. Mekonnen, Daniel Ayalew, 2016. "Social Interactions and Aspirations Formation in Rural Ethiopia," Discussion Papers 250150, University of Bonn, Center for Development Research (ZEF).
    8. Rajesh Chandy & Om Narasimhan, 2015. "Millions of Opportunities: An Agenda for Research in Emerging Markets," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 2(4), pages 251-263, December.
    9. Rocío Moreno-Sánchez & Vanesa Martínez & Jorge H. Maldonado & Arturo Rodríguez, 2017. "Cambios en bienestar subjetivo, aspiraciones y expectativas en participantes de programas de alivio a la pobreza: un análisis cualitativo de Produciendo por mi futuro en Colombia," DOCUMENTOS CEDE 015818, UNIVERSIDAD DE LOS ANDES-CEDE.
    10. Thompson, William W. & Janzen, Sarah A. & Magnan, Nicholas P. & Sharma, Sudhindra, 2015. "Social Drivers of Aspirations Formation and Failure in Rural Nepal," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205757, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    11. Bernard, Tanguy & Taffesse, Alemayehu Seyoum, 2012. "Measuring aspirations: Discussion and example from Ethiopia:," ESSP working papers 47, International Food Policy Research Institute (IFPRI).
    12. David Laborde & Will Martin & Dominique van der Mensbrugghe, 2017. "Measuring the Impacts of Global Trade Reform with Optimal Aggregators of Distortions," Review of International Economics, Wiley Blackwell, vol. 25(2), pages 403-425, May.
    13. Babu, Suresh Chandra & Glendenning, Claire J. & Asenso-Okyere, Kwadwo & Govindarajan, Senthil Kumar, 2012. "Farmers’ information needs and search behaviors: Case study in Tamil Nadu, India," IFPRI discussion papers 1165, International Food Policy Research Institute (IFPRI).
    14. repec:eee:jeborg:v:139:y:2017:i:c:p:1-25 is not listed on IDEAS
    15. Prasad, Sanjay K. & Pullabhotla, Hemant & Ganesh-Kumar, A., 2011. "Supply and demand for cereals in Nepal, 2010–2030:," IFPRI discussion papers 1120, International Food Policy Research Institute (IFPRI).
    16. Justino, Patricia, 2016. "Supply and demand restrictions to education in conflict-affected countries: New research and future agendas," International Journal of Educational Development, Elsevier, vol. 47(C), pages 76-85.
    17. Cai, Ximing & Yang, Yi-Chen E. & Zhao, Jianshi & Ringler, Claudia, 2011. "Can water allocation in the Yellow River basin be improved?: Insights from a multi-agent system model," IFPRI discussion papers 1117, International Food Policy Research Institute (IFPRI).
    18. Dercon, Stefan & Singh, Abhijeet, 2013. "From Nutrition to Aspirations and Self-Efficacy: Gender Bias over Time among Children in Four Countries," World Development, Elsevier, vol. 45(C), pages 31-50.
    19. Husmann, Christine, 2016. "Marginality as a Root Cause of Poverty: Identifying Marginality Hotspots in Ethiopia," World Development, Elsevier, vol. 78(C), pages 420-435.
    20. Zambrano, Patricia & Maldonado, Jorge H. & Mendoza, Sandra L. & Ruiz, Lorena & Fonseca, Luz Amparo & Cardona, Iván, 2011. "Women cotton farmers: Their perceptions and experiences with transgenic varieties: A case study for Colombia," IFPRI discussion papers 1118, International Food Policy Research Institute (IFPRI).
    21. Yamauchi, Futoshi & Liu, Yanyan, 2011. "Impacts of an early education intervention on students' learning achievement: Evidence from the Philippines," IFPRI discussion papers 1121, International Food Policy Research Institute (IFPRI).

    More about this item

    Keywords

    aspirations; aspirations failure; aspirations gap; aspirations window; fatalism; self-efficacy;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:fpr:ifprid:1101. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/ifprius.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.