Jerónimo Carballo , Ignacio Marra de Artiñano , Christian Volpe Martincus
{"title":"The impact of investment promotion on multinational production: Firm-level evidence","authors":"Jerónimo Carballo , Ignacio Marra de Artiñano , Christian Volpe Martincus","doi":"10.1016/j.jdeveco.2025.103666","DOIUrl":"10.1016/j.jdeveco.2025.103666","url":null,"abstract":"<div><div>Countries make use of a wide range of policies to attract multinational firms, but identifying their effects is challenging. In this paper, we provide novel microeconometric evidence on the impacts of one of the most common of such policies: investment promotion. To do so, we combine firm-level data on both the location of multinational firms’ foreign affiliates and detailed service-specific information from Costa Rica’s investment promotion agency (IPA) over time. We find that IPA support significantly increases the probability that a multinational firm establishes its first affiliate in the country. We then show that this effect is particularly strong for information services and on multinational firms from home countries and in sectors potentially facing more severe information frictions.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"180 ","pages":"Article 103666"},"PeriodicalIF":4.6,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145791066","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Ella Kirchner , Elinor Benami , Andrew Hobbs , Michael R. Carter , Zhenong Jin
{"title":"Get in the zone: The risk-adjusted welfare effects of data-driven vs. administrative borders for index insurance zones","authors":"Ella Kirchner , Elinor Benami , Andrew Hobbs , Michael R. Carter , Zhenong Jin","doi":"10.1016/j.jdeveco.2025.103658","DOIUrl":"10.1016/j.jdeveco.2025.103658","url":null,"abstract":"<div><div>Agricultural index insurance aims to protect producers from widespread shocks within defined areas, often based on administrative boundaries. However, these boundaries may poorly reflect yield variation, imposing costs on both policyholders and the public. Advances in geospatial data accessibility and clustering techniques offer potential to define more homogeneous insurance zones. This study evaluates the impact of redrawing zone boundaries based on observed agri-environmental conditions in western Kenya. Using over 13,000 crop cut observations with satellite-based estimates on growing conditions, we assess how data-driven zones affect producer welfare in a simulated area-yield index insurance program. While some data-driven zones modestly improve risk reduction with a fixed number of zones, greater flexibility in zone number and field sampling intensity offers more potential to balance performance and cost. We present a conceptual model and empirical simulations to characterize how zone design and data collection intensity jointly shape insurance outcomes in resource-constrained settings.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"180 ","pages":"Article 103658"},"PeriodicalIF":4.6,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145840605","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"CO2 emission regulation and generation allocation with heterogeneous coal-fired generators","authors":"Zhiyuan Chen , Rong Luo , Li Su","doi":"10.1016/j.jdeveco.2025.103711","DOIUrl":"10.1016/j.jdeveco.2025.103711","url":null,"abstract":"<div><div>Using a generator-level framework, we analyze the impacts of different regulation levels of <span><math><msub><mrow><mi>CO</mi></mrow><mrow><mn>2</mn></mrow></msub></math></span> emissions on total emissions and generation costs in the China Southern Power Grid Corporation. We employ a structural approach to estimating the generator-level production functions that incorporate heterogeneous returns to scale and unobserved productivity, using a novel generator-level dataset. We find substantial heterogeneity in generation efficiency across generators, and large generators are the most efficient. Counterfactual analyses show that regulating emissions and allocating generation at a more aggregate level (province or region) can reduce total emissions and generation costs by shifting generation toward more efficient generators and plants. The generator-level framework allows for more efficient allocation than the plant-level framework.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"180 ","pages":"Article 103711"},"PeriodicalIF":4.6,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145840607","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Gender differences in judicial decisions under incomplete information: Evidence from child support cases","authors":"Roberto Asmat , Lajos Kossuth","doi":"10.1016/j.jdeveco.2025.103622","DOIUrl":"10.1016/j.jdeveco.2025.103622","url":null,"abstract":"<div><div>We study gender differences in child support rulings by judges in cases where defendants (fathers) may work in either the formal or informal sector. Our identification strategy exploits the random assignment of cases to courts presided over by individual judges. We find that female judges award child support amounts that are 0.18 standard deviations lower than those awarded by male judges. When focusing on defendants working in the informal sector (who constitute over 70% of the cases), the gap appears to stem from female judges’ greater skepticism toward what they perceive as inflated claims by plaintiffs, influencing their beliefs about defendants’ earnings. We further explore four potential mechanisms behind the gap that also include formal cases: bias against female plaintiffs, workplace masculinization, interactions with other judge characteristics, and differences in legal objectives. We do not find conclusive statistical support for these mechanisms.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"179 ","pages":"Article 103622"},"PeriodicalIF":4.6,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145158870","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Public good or public bad? Nation-building and Indigenous institutions","authors":"Aldo Elizalde , Eduardo Hidalgo , Nayeli Salgado , Sotiris Kampanelis","doi":"10.1016/j.jdeveco.2025.103652","DOIUrl":"10.1016/j.jdeveco.2025.103652","url":null,"abstract":"<div><div>While existing evidence shows that nation-building policies unify societies, little is known about how and what makes some societal groups to resist them. We examine this in the context of the post-Mexican Revolution (1920s–1950s), when the new state implemented a nation-building policy to eliminate Indigenous cultures and identities by increasing connectivity via transport infrastructure. In a difference-in-differences design, we leverage heterogeneity in the exposure to pre-colonial political centralisation as a proxy for the ability of Indigenous populations in mobilising to resist national integration. We find that the expansion of transport infrastructure was lower in municipalities with a stronger efficacy of Indigenous mobilisation. We demonstrate that this underprovision of public goods can be partly explained by Indigenous identity preservation and high abilities for collective actions.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"179 ","pages":"Article 103652"},"PeriodicalIF":4.6,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145267682","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Facundo Albornoz , Gonzalo Almeyda Torres , María Lombardi , Victoria Oubiña , Pablo Zoido Lobaton
{"title":"Remote tutoring in Latin America","authors":"Facundo Albornoz , Gonzalo Almeyda Torres , María Lombardi , Victoria Oubiña , Pablo Zoido Lobaton","doi":"10.1016/j.jdeveco.2025.103687","DOIUrl":"10.1016/j.jdeveco.2025.103687","url":null,"abstract":"<div><div>We study the effect of a randomized one-on-one remote phone tutoring program implemented between 2021 and 2023. The intervention reached almost seven thousand students in seven Latin American countries: Argentina, Brazil, El Salvador, Guatemala, Mexico, Paraguay and Peru. The program targeted students with low initial learning levels and focused on foundational numeracy skills using a differentiated instruction approach. We find that assignment to tutoring increased student test scores by 0.2 SD. Tutoring benefited all students, with no differential effects by gender, age, socioeconomic status, or baseline scores. We find suggestive evidence that students who reported difficulties with concentration or memory may have benefited more. Finally, we find that students with lower initial performance exhibited larger improvements in more basic mathematical operations, whereas those with better performance at baseline saw larger gains in more complex operations. This underscores the importance of offering differentiated instruction based on students’ initial performance.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"179 ","pages":"Article 103687"},"PeriodicalIF":4.6,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145579000","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jessica Leight , Daniel Gilligan , Melissa Hidrobo , Harold Alderman , Michael Mulford
{"title":"Can a light-touch graduation model enhance livelihood outcomes? Evidence from Ethiopia","authors":"Jessica Leight , Daniel Gilligan , Melissa Hidrobo , Harold Alderman , Michael Mulford","doi":"10.1016/j.jdeveco.2025.103682","DOIUrl":"10.1016/j.jdeveco.2025.103682","url":null,"abstract":"<div><div>In recent years, a growing literature has examined the potential of multifaceted, intensive graduation models that address multiple barriers constraining households’ exit from poverty. In this paper, we present new evidence from a randomized trial of a lighter-touch (less intensive) graduation model implemented in Ethiopia. The primary experimental arms are a bundled intervention including a transfer valued at PPP $374 (randomly assigned to be cash or equivalent value in poultry), training, and savings groups; a simpler intervention including training and savings groups only; and a control arm. We find that three years post-baseline, the intervention inclusive of the transfer leads to increases in savings and cash income from livestock, though there is no shift in consumption or food security and very little evidence of asset accumulation; these effects are generally consistent regardless of the modality of the transfer (cash versus poultry). The effects of training and savings groups alone are minimal.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"179 ","pages":"Article 103682"},"PeriodicalIF":4.6,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145578998","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Shenggang Ren , Li Zhao , Peng Zhang , Caiquan Bai
{"title":"Pollution reduction effects of new transregional power transmission systems: Evidence from ultra-high-voltage projects of China","authors":"Shenggang Ren , Li Zhao , Peng Zhang , Caiquan Bai","doi":"10.1016/j.jdeveco.2025.103641","DOIUrl":"10.1016/j.jdeveco.2025.103641","url":null,"abstract":"<div><div>Many countries face challenges due to the geographical mismatch of energy supply and demand. Traditional high-voltage transmission systems have limited capacity to meet the rising need for transregional electricity transfer. China's recently developed ultra-high-voltage (UHV) transmission system presents a promising solution. This study quantifies the pollution reduction effects of UHV transmission using firm-level data on emissions and energy consumption. Employing a staggered difference-in-differences (DID) design that accounts for regional heterogeneity, we find that the operation of UHV lines reduces firms' total SO<sub>2</sub> emissions by 16.8 % on average and emission intensity by 17.1 %. Mechanism analysis indicates that the UHV system provides low-cost and stable electricity, facilitating electrification in power importing areas. It also boosts hydropower generation in power exporting areas, displacing thermal power in power importing areas. Welfare analysis shows that incorporating environmental benefits reduces the investment payback period of UHV projects from 28 years to 5 years at a 2.5 % discount rate. These findings contribute to a comprehensive evaluation of transregional electricity infrastructure, particularly in developing economies where grid modernization is a key energy policy goal.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"179 ","pages":"Article 103641"},"PeriodicalIF":4.6,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145119161","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does social identity constrain rural entrepreneurship? Evidence on the role of financial inclusion","authors":"Sandhya Garg , Samarth Gupta , Sushanta Mallick","doi":"10.1016/j.jdeveco.2025.103669","DOIUrl":"10.1016/j.jdeveco.2025.103669","url":null,"abstract":"<div><div>This paper examines whether improved financial access can mitigate the constraints imposed by social identity on entrepreneurship among under-privileged caste groups in India. Using a novel dataset on Indian villages and their proximity to bank branches, we find that closer access to a bank branch significantly enhances entrepreneurial activity among Scheduled Castes (SCs) in non-agricultural sectors, especially in those sectors that are traditionally dominated by upper-caste groups. These findings are more pronounced in villages where the improvement in proximity was plausibly exogenous, resulting from the RBI's Bank Branch Expansion Policy of 2005. For Scheduled Tribes (STs), however, financial access is associated with a gain in the size of hired employment within enterprises. Exploring several mechanisms, we find that these effects are primarily driven by credit uptake. Overall, our findings highlight the potential of financial inclusion in breaking rigid social norms around the entrenched caste-based occupational segregation and promoting more equitable economic participation in India.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"179 ","pages":"Article 103669"},"PeriodicalIF":4.6,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145473630","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Leonardo Sánchez-Aragón , Gonzalo E. Sánchez , Wladimir Zanoni
{"title":"Stimulating local economies through central transfers: A natural experiment from Ecuador","authors":"Leonardo Sánchez-Aragón , Gonzalo E. Sánchez , Wladimir Zanoni","doi":"10.1016/j.jdeveco.2025.103664","DOIUrl":"10.1016/j.jdeveco.2025.103664","url":null,"abstract":"<div><div>This paper provides causal evidence on the economic impact of central-to-local government transfers in a developing country context. We exploit plausibly exogenous variation in municipal transfers generated by a 2018 reform to Ecuador’s intergovernmental allocation formula. Using a design-based instrumental variables strategy, we estimate that a 1% increase in government transfers led to a 0.94% increase in total business sales in 2018 and 1.05% in 2019. The strongest effects are found in non-VAT sales. Mechanism analysis shows that transfers boost local economic activity mainly through increased recurrent and capital spending, particularly wages and procurement, suggesting that well-designed transfers can act as effective local demand stimuli.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"179 ","pages":"Article 103664"},"PeriodicalIF":4.6,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145362565","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}