Households’ investments in durable and productive assets in Niger: quasi-experimental evidence from a cash transfer project

• Development Workshop

Date and Location

Monday, December 1, 2014, 4:10 PM - 5:30 PM
ARE Conference Room, 2102 Social Sciences and Humanities

Abstract

Cash transfers programs are an increasingly popular tool to alleviate poverty by raising households’ consumption and well-being. However, the long-term effect of the transfers is still an open question in Sub-Saharan Africa. By studying a cash transfer project in rural Niger 18 months after its termination, this article investigates whether transfers induce investments in assets and productive activities that result in improvements in well-being that survive the termination of program payments. Results indicate that livestock asset and local credit (tontines) participation significantly increase among project participants. There is also evidence of improvement in private assets, living standards, micro-enterprises and agriculture. The findings imply that cash transfer programs can have long-term sustainable impacts even in extremely poor, rural areas.