Beyond fatalism - an empirical exploration of self-efficacy and aspirations failure in Ethiopia
Fatalism is considered pervasive, not least within many poor communities.� In this paper, we explore whether 'fatalistic' beliefs have implications for the attitudes and behaviour of poor rural households towards investment in the future.� We first explore the idea of fatalism drawing inspiration from theories in psychology focusing on the role of locus of control and self-efficacy, and 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 a small aspiration 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.
|Date of creation:||01 Jan 2011|
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