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Poor households'productive investments of cash transfers : quasi-experimental evidence from Niger

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  • Stoeffler,Quentin
  • Mills,Bradford F.
  • Premand,Patrick

Abstract

Cash transfer programs have spread rapidly as an instrument to raise household consumption and reduce poverty. Questions remain about the sustainability of cash transfer impacts in low-income settings such as Sub-Saharan Africa and, in particular, on whether cash transfers can foster productive investments in addition to raising immediate consumption among the very poor. This paper presents evidence that a cash transfer project in rural Niger induced investments in assets and productive activities that were sustained among the very poor 18 months after project completion. Results show lasting increases in livestock assets and participation in saving groups (tontines). Cash transfers also contributed to improved agricultural productivity, but no effects in terms of diversification of other household enterprises are found. Productive asset gains are, notably, largest among the poorest of the poor, suggesting that small regular cash transfers combined with enhanced saving mechanisms can relax constraints to asset accumulation among the extreme poor.

Suggested Citation

  • Stoeffler,Quentin & Mills,Bradford F. & Premand,Patrick, 2016. "Poor households'productive investments of cash transfers : quasi-experimental evidence from Niger," Policy Research Working Paper Series 7839, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7839
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    Cited by:

    1. Patrick Premand & Dominic Rohner, 2024. "Cash and Conflict: Large-Scale Experimental Evidence from Niger," American Economic Review: Insights, American Economic Association, vol. 6(1), pages 137-153, March.
    2. Patrick Premand & Pascale Schnitzer, 2021. "Efficiency, Legitimacy, and Impacts of Targeting Methods: Evidence from an Experiment in Niger," The World Bank Economic Review, World Bank, vol. 35(4), pages 892-920.
    3. Premand, Patrick & Stoeffler, Quentin, 2022. "Cash transfers, climatic shocks and resilience in the Sahel," Journal of Environmental Economics and Management, Elsevier, vol. 116(C).
    4. Kakpo, Ange & Mills, Bradford F. & Brunelin, Stéphanie, 2022. "Weather shocks and food price seasonality in Sub-Saharan Africa: Evidence from Niger," Food Policy, Elsevier, vol. 112(C).
    5. Luis Henrique Paiva & Santiago Falluh Varella, 2019. "The impacts of social protection benefits on behaviours potentially related to economic growth: a literature review," Working Papers 183, International Policy Centre for Inclusive Growth.
    6. Giorgio Di Pietro, 2022. "Changes in household income during COVID-19: a longitudinal analysis," SN Business & Economics, Springer, vol. 2(10), pages 1-20, October.
    7. Premand, Patrick & Barry, Oumar, 2022. "Behavioral change promotion, cash transfers and early childhood development: Experimental evidence from a government program in a low-income setting," Journal of Development Economics, Elsevier, vol. 158(C).
    8. Ebenezer Owusu‐Addo & Andre M. N. Renzaho & Paul Sarfo‐Mensah & Yaw A. Sarpong & William Niyuni & Ben J. Smith, 2023. "Sustainability of cash transfer programs: A realist case study," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 173-198, June.

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    Keywords

    Inequality; Social Protections&Assistance;

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