IDEAS home Printed from https://ideas.repec.org/p/unu/wpaper/wp2015-031.html
   My bibliography  Save this paper

Connections and the Allocation of Public Benefits

Author

Listed:
  • Newman Carol
  • Zhang Mengyang

Abstract

We explore the relationship between connections and public transfers in decentralized poverty-targeting programmes. Using panel data from Vietnam we find evidence that households with connections to local government are more likely to be classified as poor, the main determinant of whether households receive public benefits/supports. Social connections play a role by allowing politically connected households to receive supports without being reprimanded by their local community. We identify provision of information as a mechanism through which households use their connections to obtain the poverty classification, suggesting that information campaigns may be an effective means of eliminating local level corruption in poverty-targeting programmes.

Suggested Citation

  • Newman Carol & Zhang Mengyang, 2015. "Connections and the Allocation of Public Benefits," WIDER Working Paper Series 031, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp2015-031
    as

    Download full text from publisher

    File URL: https://www.wider.unu.edu/sites/default/files/wp2015-031.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Pande, Rohini, 2008. "Understanding Political Corruption in Low Income Countries," Handbook of Development Economics, Elsevier.
    2. Banerjee, A.V., 1997. "A Theory of Misgovernance," Working papers 97-4, Massachusetts Institute of Technology (MIT), Department of Economics.
    3. Bardhan, Pranab & Mookherjee, Dilip, 2006. "Pro-poor targeting and accountability of local governments in West Bengal," Journal of Development Economics, Elsevier, vol. 79(2), pages 303-327, April.
    4. Baird, Sarah & McIntosh, Craig & Özler, Berk, 2013. "The regressive demands of demand-driven development," Journal of Public Economics, Elsevier, vol. 106(C), pages 27-41.
    5. Broussard, Nzinga H. & Dercon, Stefan & Somanathan, Rohini, 2014. "Aid and agency in Africa: Explaining food disbursements across Ethiopian households, 1994–2004," Journal of Development Economics, Elsevier, vol. 108(C), pages 128-137.
    6. Bet Caeyers & Stefan Dercon, 2012. "Political Connections and Social Networks in Targeted Transfer Programs: Evidence from Rural Ethiopia," Economic Development and Cultural Change, University of Chicago Press, vol. 60(4), pages 639-675.
    7. Markussen, Thomas & Tarp, Finn, 2014. "Political connections and land-related investment in rural Vietnam," Journal of Development Economics, Elsevier, vol. 110(C), pages 291-302.
    8. Abhijit V. Banerjee, 1997. "A Theory of Misgovernance," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1289-1332.
    9. Ghazala Mansuri & Vijayendra Rao, 2013. "Localizing Development : Does Participation Work?," World Bank Publications, The World Bank, number 11859.
    10. Arcand, Jean-Louis & Fafchamps, Marcel, 2012. "Matching in community-based organizations," Journal of Development Economics, Elsevier, vol. 98(2), pages 203-219.
    11. Galasso, Emanuela & Ravallion, Martin, 2005. "Decentralized targeting of an antipoverty program," Journal of Public Economics, Elsevier, vol. 89(4), pages 705-727, April.
    12. Bardhan, Pranab & Mookherjee, Dilip, 2005. "Decentralizing antipoverty program delivery in developing countries," Journal of Public Economics, Elsevier, vol. 89(4), pages 675-704, April.
    13. Benjamin A. Olken, 2007. "Monitoring Corruption: Evidence from a Field Experiment in Indonesia," Journal of Political Economy, University of Chicago Press, vol. 115, pages 200-249.
    14. Timothy Besley & Rohini Pande & Vijayendra Rao, 2005. "Participatory Democracy in Action: Survey Evidence from South India," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 648-657, 04/05.
    15. Alderman, Harold, 2002. "Do local officials know something we don't? Decentralization of targeted transfers in Albania," Journal of Public Economics, Elsevier, vol. 83(3), pages 375-404, March.
    16. Besley, Timothy & Coate, Stephen, 2003. "Centralized versus decentralized provision of local public goods: a political economy approach," Journal of Public Economics, Elsevier, vol. 87(12), pages 2611-2637, December.
    17. Conning, Jonathan & Kevane, Michael, 2002. "Community-Based Targeting Mechanisms for Social Safety Nets: A Critical Review," World Development, Elsevier, vol. 30(3), pages 375-394, March.
    18. Ritva Reinikka & Jakob Svensson, 2005. "Fighting Corruption to Improve Schooling: Evidence from a Newspaper Campaign in Uganda," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 259-267, 04/05.
    19. Deshingkar, Priya & Johnson, Craig & Farrington, John, 2005. "State transfers to the poor and back: The case of the Food-for-Work program in India," World Development, Elsevier, vol. 33(4), pages 575-591, April.
    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. Markussen Thomas, 2015. "Social and political capital in rural Viet Nam," WIDER Working Paper Series 087, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Sociological aspects (Economics); Households; Microeconomics; Poverty; Public welfare;

    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:unu:wpaper:wp2015-031. 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: (Mauricio Roa Grisales). General contact details of provider: http://edirc.repec.org/data/widerfi.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.