scholarly journals Cash transfers and multiplier effect: lessons from the grain subsidy program in China

2016 ◽  
Vol 8 (1) ◽  
pp. 81-99 ◽  
Author(s):  
Fujin Yi ◽  
Wuyi Lu ◽  
Yingheng Zhou
Keyword(s):  
Cash Transfer ◽  
Transfer Program ◽  
Distribution Method ◽  
Content Type ◽  
Specific Subset ◽  
Multiplier Effect ◽  
Income Multiplier ◽  
Subsidy Program ◽  
Multiplier Effects ◽  
Grain Subsidy

Purpose – The purpose of this paper is to examine the multiplier effects of the grain subsidy program in China, which is a large food self-sufficiency project that is implemented as a cash transfer program. Income multiplier effects have not been empirically examined in the evaluation of the grain subsidy program although increasing the income of farmers is the original goal of this project. Design/methodology/approach – A large number of household-level observations are employed to measure the program’s income multiplier. An unrestricted model was first employed to measure the multipliers in a period of two years, and the difference was evaluated. Then, the income promotion effects of grain subsidy on various income sources for each specific subset of the population, such as liquidity conditions and household characteristics, were estimated. Findings – The results show that the grain subsidy program has a high income multiplier, and the income promotion effect of the transferred subsidies is from agricultural production derived by intensifying input for each unit of land. The multiplier effect of the grain subsidy program as a cash transfer program can be interpreted as the shadow value of relaxing liquidity constraints and could be particularly utilized by households with more farming land and farmers in less developed regions in China. Hence, to maximize the income multiplier effect, the grain subsidy distribution method should consider these criteria instead of retaining the prevalent standard that is based on contracted land areas. Originality/value – This study addresses the gap that the effect of China’s grain subsidy program on income increment has not been empirically examined in nation wide.

Assessing the Livelihood Empowerment Against Poverty (LEAP) program as a conditional income transfer: a search for a conceptual framework

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alhassan Abdul-Wakeel Karakara ◽  
Ernest Amoabeng Ortsin
Keyword(s):  
Conceptual Framework ◽  
Poverty Reduction ◽  
Social Protection ◽  
Insurance Coverage ◽  
Implementation Strategies ◽  
Cash Transfer ◽  
Primary Data ◽  
Transfer Program ◽  
Content Type ◽  
The Poor

Purpose Ghana has implemented different kinds of pro-poor program and policies since its independence to reduce poverty. The Livelihood Empowerment Against Poverty (LEAP) is one of such program. LEAP is a social cash transfer program and its implementation has been under the auspices of the Ministry of Gender, Children and Social Protection since 2008. It provides direct cash and health insurance coverage for extremely poor households across the country to alleviate short-term poverty and encourage long-term human capital development. This paper examines the LEAP program in terms of how it has achieved its aim and the opportunities for improvement.Design/methodology/approach Primary data were obtained from interviews of 110 beneficiaries of the program. The study proposes a conceptual framework that links poverty reduction and social policies to assist researchers analyze pro-poor or social cash transfer program.Findings The findings show that the program is challenged with administrative bureaucracies, irregular inflow of funds, perceived political interferences, inconsistent implementation strategies and low value of the cash transfer (which results in little or no impact on consumption). However, the data also show that LEAP has positive impacts on nonconsumption spending like children's schooling. The program' exit strategy does not impact much on beneficiaries to allow them exit without the tendency of being poor.Practical implications This paper discussed the LEAP program as a social cash transfer to the poor in Ghana. The study constructed a conceptual framework to help researchers and practitioners analyze the implementation of pro-poor interventions. This conceptualization allows for cash transfer program to empower beneficiaries and exits them to allow for other beneficiaries to enroll, ensuring reduction in poverty over time. Generally, the beneficiaries have benefited from the LEAP in the areas of consumption, education and healthcare with few beneficiaries being able to accumulate some few assets. The LEAP program has no exit plan.Originality/value This study adds to literature by offering a conceptual framework to help researchers and policy makers in dealing with social assistance policies to the poor. The study also gave an insight into how pro-poor policy strategies could be crafted.

scholarly journals COVID-19 economic shocks and fiscal policy options for Ghana

2020 ◽  
Vol 32 (5) ◽  
pp. 903-917
Author(s):  
Komla D. Dzigbede ◽  
Rahul Pathak
Keyword(s):  
Cash Transfer ◽  
Fiscal Sustainability ◽  
Economic Indicators ◽  
Policy Options ◽  
Transfer Program ◽  
Economic Shocks ◽  
Economic Resilience ◽  
Assistance Program ◽  
Content Type

PurposeThis article examines the fiscal challenges the coronavirus pandemic poses in African countries, using Ghana as a case study and summarizes the country's immediate monetary and fiscal responses to the pandemic. The article also discusses the potential impacts of coronavirus-related shocks on the Ghana economy and policy options the national government may pursue to counteract the pandemic's adverse long-term effects.Design/methodology/approachThe article uses daily and monthly economic indicators to assess the immediate impact of the pandemic on Ghana's economy. The article also uses latest data from the Ghana Living Standards Survey (GLSS) to simulate potential shocks to the economy related to the coronavirus crisis and examines the outcomes from a potential government response that expands spending on an existing direct social assistance program.FindingsThe authors find that the coronavirus pandemic is associated with a significant increase in Ghana's poverty measures over time, and an expansion in government spending under an existing cash transfer program would partly offset the economic shocks related to the crisis and improve outcomes for poverty and inequality. The authors also argue that other well-targeted expenditure and revenue policies will support long-term economic resilience.Research limitations/implicationsThe research suggests that a temporary expansion of the existing program of direct cash payments to poor households may be an effective social protection policy, as are well-targeted revenue and spending policies that support economic recovery and long-term fiscal sustainability.Practical implicationsThe findings imply that while the pandemic might cause severe shocks in the economy, well-targeted spending and revenue policies that are anchored in sound macroeconomic management can promote economic resilience and long-term fiscal sustainability.Social implicationsPublic managers must ensure that national policy responses to the coronavirus pandemic consider socio-economic indicators, such as poverty and income inequality.Originality/valueThe authors present research that uses novel household-level data and an evidence-based microsimulation framework to articulate potential public policy strategies that can guide national responses to, and recovery from, the coronavirus pandemic.

Safety net programs in West Bengal: how much effective?

2017 ◽  
Vol 44 (12) ◽  
pp. 2019-2032
Author(s):  
Arghya Kusum Mukherjee
Keyword(s):  
Distribution System ◽  
West Bengal ◽  
Household Survey ◽  
Safety Net ◽  
Cash Transfer ◽  
Poor People ◽  
Transfer Program ◽  
Content Type ◽  
The Poor ◽  
Employment Guarantee

Purpose The purpose of this paper is to find the determinants of participation and targeting efficiency of the following safety net programs in West Bengal: Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), self-targeted program; National Rural Livelihood Mission (NRLM), subsidy based livelihood program; Indira Awaas Yojona (IAY), targeted cash transfer program and Public Distribution System (PDS), targeted in kind transfer program. Design/methodology/approach The study is based on a household survey comprising 900 households across three Districts: Murshidabad, Nadia and Burdwan. Findings Benefits from MNREGA and PDS are not substantial, whereas financial benefits are substantial from NRLM and IAY. This paper shows that poor people have higher likelihood of participation in MNREGA and PDS. But, non poor get disproportionate benefits from IAY and NRLM both have been designed for the poor. Therefore, targeting cannot remove elite capture altogether. Socially down trodden section have higher participation in MNREGA and PDS, whereas people who are at upper tier of social hierarchy enjoy the benefits of IAY and NRLM. However, it cannot be said that these programs miss their target completely. Practical implications The study suffers from the usual limitations of sampling. Social implications Programs targeted for the poor are being appropriated by the non poor. If there is better targeting money will be channelized to the desired beneficiaries and welfare will be enhanced. Originality/value The study has unearthed the underlying reasons behind why some safety net programs have better targeting and some safety net programs have poor targeting.

Cash transfers and political support: evidence from Ecuador

2020 ◽  
Vol 19 (2) ◽  
pp. 255-274
Author(s):  
Juan Ponce ◽  
Carolina Curvale
Keyword(s):  
Conditional Cash Transfer ◽  
Political Support ◽  
Cash Transfer ◽  
Transfer Program ◽  
Eligibility Criteria ◽  
Content Type ◽  
Vote Intention ◽  
Conditional Cash Transfer Program ◽  
Quasi Experimental ◽  
The Impact

Purpose This paper evaluates the argument that conditional cash transfer program recipients vote for the incumbent. We also test the hypothesis stating that ceasing to receive the benefit hinders support for the incumbent. Design/methodology/approach Using a regression discontinuity design, we assess the impact of the Bono de Desarrollo Humano cash transfer program on pro-incumbent voting of each of these four groups. Findings We did not find a significant impact of the transfer on pro-incumbent vote intention in any of the pairwise comparisons, which suggests that contextual factors determining retrospective voting may play an important role in shaping the relationship between pro-incumbent voting and social policy transfers. Originality/value Drawing on quasi-experimental evidence from Ecuador, where the eligibility criteria of the program changed exogenously, we evaluate the impacts of several treatments on pro-incumbent voting. We are able to identify four distinct groups: recipients under both eligibility criteria, nonrecipients under both criteria, new recipients and new nonrecipients.

The influence of Bolsa Familia conditional cash transfer program on child labor in Brazil

2017 ◽  
Vol 44 (2) ◽  
pp. 206-221 ◽  
Author(s):  
Paloma Santana Moreira Pais ◽  
Felipe de Figueiredo Silva ◽  
Evandro Camargos Teixeira
Keyword(s):  
Child Labor ◽  
School Attendance ◽  
Conditional Cash Transfer ◽  
Cash Transfer ◽  
Sample Survey ◽  
Transfer Program ◽  
Content Type ◽  
Brazilian Government ◽  
Bolsa Familia ◽  
The Impact

Purpose The Brazilian Government created the Bolsa Familia program to combat poverty and the insertion of so many children into the labor market. This program is an income transfer program subject to certain conditions such as a minimum school attendance for children under 17 years of age. In 2006, almost half of the people with an income per capita of R$300.00 (US$139.53) per month declared that they received this benefit. Accordingly, the purpose of this paper is to analyze the impact of Bolsa Familia on child labor in Brazil in 2006. Design/methodology/approach The authors used a propensity score matching model with data from the National Household Sample Survey PESQUISA NACIONAL POR AMOSTRA DE DOMICÍLIOS (PNAD), for 2006. Findings Results indicate that the program increased the number of hours of child labor in Brazil. However, this outcome might be explained by the fact that those families who received Bolsa Familia were also those with higher socioeconomic vulnerability. Thus, they need to guarantee their survival with the income generated via child labor. Social implications The Brazilian Government needs to invest not only in monetary transfer policies but also in the improvement of the job market to create opportunities for the social development of children. Originality/value The contribution of the paper is the investigation into the effect of the Bolsa Familia program on the average time allocated to child labor; the authors find that this time allocation could be reduced by requiring a compulsory school attendance.

scholarly journals INPUT-OUTPUT ANALYSIS: A CASE STUDY OF TRANSPORTATION SECTOR IN INDONESIA

2018 ◽  
Vol 3 (2) ◽  
pp. 26
Author(s):  
Muryani Muryani ◽  
Rosario Bedi Swastika
Keyword(s):  
Transport Sector ◽  
Input Output ◽  
Output Analysis ◽  
Budget Reduction ◽  
Transportation Sector ◽  
Multiplier Effect ◽  
Income Multiplier ◽  
Multiplier Effects ◽  
Reduction Effect ◽  
Production Output

This study Aimed to analyze the transport linkages and multiplier effects of each subsector of transport when there is a change in the budget of the transport sector in the Indonesian economy. This study uses an analytical tool input - output models of Indonesia in 2010, with 185 sectors. Input - output models is used to analyze the relationship backwards and forwards in the transport sector of the Indonesian economy and the multiplier effect on the Indonesian economy as a whole. Results of the analysis Showed that the transport has a total backward linkage high while total forward linkage of transport is relatively low. This is an indication that transportation plays in attracting and developing the upstream sector, but less instrumental in developing the downstream sector. The results Obtained from the analysis of the output multiplier effect when a decline in the transport sector budget has a high value, while the income multiplier and labor multiplier when a decline in the transport sector budget has a low value. This shows a Decrease in the budget in the transport sector can reduce the production output of the Indonesian economy but less budget reduction effect on income and employment.

DID PUBLIC CASH TRANSFER CROWD OUT INTER-HOUSEHOLD TRANSFERS IN INDONESIA? EVIDENCE FROM "BANTUAN LANGSUNG TUNAI /BLT"

INFO ARTHA ◽  
2019 ◽  
Vol 3 (2) ◽  
pp. 67-84
Author(s):  
Corry Wulandari ◽  
Nadezhda Baryshnikova
Keyword(s):  
Cash Transfer ◽  
Poor People ◽  
Crowding Out ◽  
Transfer System ◽  
Transfer Program ◽  
Exact Matching ◽  
The Public ◽  
Indonesia Family Life Survey ◽  
Public Transfers ◽  
The Government

In 2005 the Government of Indonesia introduced an unconditional cash transfer program called the ‘Bantuan Langsung Tunai’ (BLT), aimed at assisting poor people who were suffering from the removal of a fuel subsidy. There are concerns, however, that the introduction of a public transfer system can negatively affect inter-household transfers through the crowding-out effect, which exists when donor households reduce the amount of their transfers in line with public transfers received from the government. The poor may not therefore have received any meaningful impact from the public cash transfer, as they potentially receive fewer transfers from inter-household private donors. For the government to design a public transfer system, it is necessary to properly understand the dynamics of private transfer behaviour. Hence, this study evaluates whether there exists a crowding-out effect of public transfers on inter-household transfers in Indonesia.Using data from the Indonesia Family Life Survey (IFLS) and by applying Coarsened Exact Matching (CEM) and Difference-in-differences (DID) approaches, this study found that the likelihood to receive transfers from other family members (non-co-resident) reduces when the household receives BLT. However, there is no significant impact of BLT on transfers from parents and friends.

Poverty Relief Programs in Postcommunist Countries: A Case Study on the Albanian and Chinese Programs

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110278
Author(s):  
Gentian Qejvanaj
Keyword(s):  
Rural Areas ◽  
Cash Transfer ◽  
Basic Income ◽  
Transfer Program ◽  
Means Testing ◽  
Poverty Relief ◽  
Private Expenditure ◽  
Working Age ◽  
Working Age Population ◽  
The Cost

Social assistance is a cash transfer program targeting the poorest households. China has created the Dibao (DB), meaning minimum livelihood guarantee, the most extensive unconditional cash transfer program globally with over 70 million people covered, whereas in Albania, the Ndhime Ekonomike (NE) meaning financial help covers around 15% of the total working-age population. Both programs are means-tested, have strict requirements for eligibility, and have been enlarged and modified in time to improve targeting and tackling leakage. In this article, we will look at similarities and common issues first, and then calculate the cost of enlarging both programs to all working-age population with no means-testing. We argue that a UBI (universal basic income) can increase private expenditure in health and education while costing less than 1% of gross domestic product (GDP) in both countries’ rural areas. We will conclude by looking at how the COVID-19 outbreak is pushing developing countries toward a UBI by first adopting a temporary basic income (TBI).

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