Robert Darko Osei

Bio: Robert Darko Osei is an academic researcher from University of Ghana. The author has contributed to research in topics: Poverty & Fiscal policy. The author has an hindex of 18, co-authored 73 publications receiving 2547 citations. Previous affiliations of Robert Darko Osei include University of Nottingham.

A multifaceted program causes lasting progress for the very poor: Evidence from six countries

Abstract: We present results from six randomized control trials of an integrated approach to improve livelihoods among the very poor. The approach combines the transfer of a productive asset with consumption support, training, and coaching plus savings encouragement and health education and/or services. Results from the implementation of the same basic program, adapted to a wide variety of geographic and institutional contexts and with multiple implementing partners, show statistically significant cost-effective impacts on consumption (fueled mostly by increases in self-employment income) and psychosocial status of the targeted households. The impact on the poor households lasted at least a year after all implementation ended. It is possible to make sustainable improvements in the economic status of the poor with a relatively short-term intervention.

Agricultural Decisions after Relaxing Credit and Risk Constraints

Abstract: The investment decisions of small-scale farmers in developing countries are conditioned by their financial environment Binding credit market constraints and incomplete insurance can reduce investment in activities with high expected profits We conducted several experiments in northern Ghana in which farmers were randomly assigned to receive cash grants, grants of or opportunities to purchase rainfall index insurance, or a combination of the two Demand for index insurance is strong, and insurance leads to significantly larger agricultural investment and riskier production choices in agriculture The salient constraint to farmer investment is uninsured risk: when provided with insurance against the primary catastrophic risk they face, farmers are able to find resources to increase expenditure on their farms Demand for insurance in subsequent years is strongly increasing in a farmer’s own receipt of insurance payouts, and with the receipt of payouts by others in the farmer’s social network Both investment patterns and the demand for index insurance are consistent with the presence of important basis risk associated with the index insurance, and with imperfect trust that promised payouts will be delivered

Agricultural Decisions after Relaxing Credit and Risk Constraints

Abstract: The investment decisions of small-scale farmers in developing countries are conditioned by their financial environment. Binding credit market constraints and incomplete insurance can limit investment in activities with high expected profits. We conducted several experiments in northern Ghana in which farmers were randomly assigned to receive cash grants, grants of or opportunities to purchase rainfall index insurance, or a combination of the two. Demand for index insurance is strong, and insurance leads to significantly larger agricultural investment and riskier production choices in agriculture. The binding constraint to farmer investment is uninsured risk: when provided with insurance against the primary catastrophic risk they face, farmers are able to find resources to increase expenditure on their farms. Demand for insurance in subsequent years is strongly increasing with the farmer’s own receipt of insurance payouts, with the receipt of payouts by others in the farmer’s social network and with recent poor rain in the village. Both investment patterns and the demand for index insurance are consistent with the presence of important basis risk associated with the index insurance, imperfect trust that promised

The Fiscal Effects of Aid in Ghana

Abstract: An important feature of aid to developing countries is that it is given to the government. As a result, aid should be expected to affect fiscal behaviour, although theory and existing evidence is ambiguous regarding the nature of these effects. This paper applies techniques developed in the ‘macroeconometrics’ literature to estimate the dynamic linkages between aid and fiscal aggregates. Vector autoregressive methods are applied to 34 years of annual data in Ghana to model the effect of aid on fiscal behaviour. Results suggest that aid to Ghana has been associated with reduced domestic borrowing and increased tax effort, combining to increase public spending. This constructive use of aid to maintain fiscal balance is evident since the mid-1980s, following Ghana’s structural adjustment programme. The paper provides evidence that aid has been associated with improved fiscal performance in Ghana, implying that the aid has been used sensibly (at least in fiscal terms).

Bounded Entrepreneurial Vitality: The Mixed Embeddedness of Female Entrepreneurship

Abstract: Despite the recent increased interest in female entrepreneurs, attention has tended to focus on dynamic individuals and generic incentives without considering the roles of gender and place in entrepreneurship. In this article, we draw on the notion of mixed embeddedness to explore how time-and-place–specific institutional contexts influence women’s entrepreneurship. Drawing on primary data collected in Ghana, where exceptionally more women engage in entrepreneurial activities than men, we examine the scale and characteristics of female entrepreneurial activity, exploring the factors that account for this strong participation of women, and examine whether this high entrepreneurial rate is also reflected in their performance and growth aspirations. The findings reveal a disjuncture between, on the one hand, the vibrant entrepreneurial endeavors of Ghanaian women and positive societal attitudes toward female entrepreneurship and, on the other hand, female business activities characterized by vulnerab...

Economic growth and income inequality

Abstract: We investigate whether income inequality affects subsequent growth in a cross-country sample for 1965-90, using the models of Barro (1997), Bleaney and Nishiyama (2002) and Sachs and Warner (1997), with negative results. We then investigate the evolution of income inequality over the same period and its correlation with growth. The dominating feature is inequality convergence across countries. This convergence has been significantly faster amongst developed countries. Growth does not appear to influence the evolution of inequality over time. Outline

Precautionary Saving in the Small and in the Large

Abstract: The theory of precautionary saving is shown in this paper to be isomorphic to the Arrow-Pratt theory of risk aversion, making possible the application of a large body of knowledge about risk aversion to precautionary saving, and more generally, to the theory of optimal choice under risk In particular, a measure of the strength of precautionary saving motive analogous to the Arrow-Pratt measure of risk aversion is used to establish a number of new propositions about precautionary saving, and to give a new interpretation of the Oreze-Modigliani substitution effect

On the Empirics of Foreign Aid and Growth

Abstract: The present paper re-examines the effectiveness of foreign aid theoretically and empirically. Using a standard OLG model we show that aid inflows will in general affect long-run productivity. The size and direction of the impact may depend on policies, 'deep' structural characteristics and the size of the inflow. The empirical analysis investigates these possibilities. Overall we find that aid has been effective in spurring growth, but the magnitude of the effect depends on climate-related circumstances. Finally, we argue that the Collier-Dollar allocation rule should be seriously reconsidered by donor agencies if aid effectiveness is related to climate.