Development

Nathan Nunn, Raul Sanchez de la Sierra, 25 June 2017

Beliefs about origins, life after death, and rituals that activate supernatural processes to help navigate people life, despite being almost certainly incorrect, are common in developing countries. This column examines the role of ‘magical’ beliefs in warfare in the context of the Democratic Republic of the Congo. Belief in a spell that offers protection from bullets helped villagers liberate their village, and others in the area, from militias, providing an example of how the ‘right’ amount of ‘wrong’ beliefs can achieve a socially efficient outcome.

Mark Gradstein, Marc Klemp, 23 June 2017

A large literature has argued that natural resources have a negative effect on economic development. The Brazilian data used in this column fail to confirm these findings. Economic activity, as measured using night-time light data, increases more during periods of rising oil prices in localities with better access to oil.  Oil revenue windfalls accruing to oil-rich locations and spillovers to adjacent locations drive this effect. 

The Editors, 22 June 2017

VoxEU is pleased to announce the launch of its new sister site – VoxDev.org. VoxDEV will focus on development issues, posting research-based analysis and commentary by leading economists. The Editor-in-Chief is Tavneet Suri, Professor of Economics at MIT.

Taylor Jaworski, 17 June 2017

Mobilisation for WWII is typically credited as having spurred the industrialisation of the American South, where industrial development had previously been stymied. Using newly collected data, this column revisits this hypothesis. Unlike earlier studies, the results do not support a decisive role for wartime capital deepening on the South’s post-war industrial development. While the results don’t rule out some positive effects of WWII investment, they suggest it may have had limited usefulness in post-war, non-military production.

Ejaz Ghani, Stephen O'Connell, 15 June 2017

There are concerns that the premature deindustrialisation experienced by low-income countries in Africa and South Asia will negatively affect their growth. This column argues that this is not the case, since services, rather than manufacturing, are driving growth in the developing world. While demographics and urbanisation can help growth in low-income countries, the low quality of physical infrastructure is a major challenge.

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