Poor Households'Productive Investments of Cash Transfers: Quasi-Experimental Evidence from Niger

44 Pages Posted: 7 Oct 2016

See all articles by Quentin Stoeffler

Quentin Stoeffler

Istanbul Technical University

Bradford F. Mills

Virginia Tech - College of Agriculture & Life Sciences

Patrick Premand

World Bank

Date Written: September 27, 2016

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.

Keywords: Inequality, Social Protections & Assistance

Suggested Citation

Stoeffler, Quentin and Mills, Bradford F. and Premand, Patrick, Poor Households'Productive Investments of Cash Transfers: Quasi-Experimental Evidence from Niger (September 27, 2016). World Bank Policy Research Working Paper No. 7839, Available at SSRN: https://ssrn.com/abstract=2849140

Quentin Stoeffler (Contact Author)

Istanbul Technical University ( email )

MaƧka
Istanbul
Turkey

HOME PAGE: http://q.stoeffler.org

Bradford F. Mills

Virginia Tech - College of Agriculture & Life Sciences ( email )

314 Hutcheson Hall
Mail Code 0401
Blacksburg, VA 24060
United States
540-231-6461 (Phone)

Patrick Premand

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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