Targeted social assistance programs and the local economy: evidence from Indonesia

Crawford School of Public Policy | Arndt-Corden Department of Economics

Event details

PhD Seminar (Econ)

Date & time

Friday 29 March 2019


#132 Crawford Building, Seminar Room 1, 1 Lennox Crossing, ANU


Anna Falentina


Associate Professor Paul Burke
6125 6566

Social assistance programs have been implemented to alleviate poverty in many developing countries. Nonetheless, little is known about the impact of these programs on local micro and small enterprises, a crucial part of the economy. Exploiting variation in the phase-in-design of conditional cash transfer in Indonesian villages, this seminar will assess the effects of a key social assistance program on the performance of local micro and small enterprises. The analysis is based on a village pseudo-panel, combining data from a survey of medium and small enterprises with village census data. Our results show that targeted social assistance contributes to an increase in labour productivity and output in the medium term. No immediate impacts are observed. A discussion of possible explanations will be provided.

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