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This week in development economics at VoxDev: 24/01/2025

VoxDev Blog

Published 24.01.25

This week we featured research on trade wars, economic development, gender inequality and more...

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We are really excited for next week's event (Tuesday January 28th) which will focus on using evidence to make humanitarian aid more effective. Register here for this free online webinar.

Contrary to the Pollution Haven hypothesis, air quality did not deteriorate in Vietnamese cities where urban economic growth has been most rapid. Today's article focuses on Vietnam's experience during the US-China trade war to show how Vietnam decoupled growth from environmental degradation. Matthew E. Kahn, Wen-Chi Liao and Siqi Zheng explore lessons for other developing countries looking to promote economic growth and reduce emissions.

Paying landowners to conserve their forested land is a leading approach to prevent deforestation. Wednesday's article presents evidence from Mexico which shows that smarter contract design can more than quadruple cost-effectiveness. Santiago Izquierdo-Tort, Seema Jayachandran and Santiago Saavedra find that requiring full enrolment in a PES programme reduces landowners’ ability to enroll only those parcels they were already going to conserve.

The global environment for development has changed, so development policies should change too. In this week's episode of VoxDevTalks, Francesco Caselli and Tim Dobermann look back at their predictions from a series of blogs on IGC in 2018, and discuss what the current geopolitical situation means for future growth policy.

The differential impact of parenthood on the employment of mothers relative to fathers – the child penalty – is a universal phenomenon, but with varying magnitudes. On Monday, Henrik Kleven, Camille Landais and Gabriel Leite-Mariante presented evidence across 134 countries which shows that typically, as countries grow wealthier, child penalties take over as the dominant driver of gender inequality.

Women in Mexico who switched to digital cash transfers face higher costs and time accessing payments but gain bargaining power. Fernanda Marquez-Padilla & Susan W. Parker show that, to mitigate these challenges, governments can improve ATM access, reduce fees, provide timely information on the date of transfers and boost financial literacy.

Subsidised access to full-day preschools in Uganda had long-term positive effects on children’s anthropometrics but not their learning outcomes. Arne Nasgowitz, Denise Ferris, Kjetil Bjorvatn, Lore Vandewalle, Selim Guleschi and Vincent Somville show that cash transfers of a similar value as the preschool subsidy had a similar impact.

On Tuesday, Oriana Bandiera, Niklas Buehren, Markus Goldstein, Imran Rasul and Andrea Smurra updated their earlier VoxDev article. They find that an empowerment programme in Sierra Leone that supported girls through a simple life skills and livelihood training buffered adolescent girls from the adverse effects of the Ebola crisis.

Elsewhere in development economics:

On that note, there are lots of other great events to register for over the coming weeks: 

Plus the following opportunities have been announced: