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Abstract Burkina Faso’s population and especially the workforce is rapidly growing. Although unemployment is low (0.6 percent), about 70 percent of Burkinabè work in low-productive agricultural activities. A key challenge for policymakers is to find effective interventions that create productive jobs for the youth. This research project seeks to provide rigorous evidence on the impacts of two private sector-based interventions – matching and cash grants – on the performance and employment by firms in agricultural value chains. These interventions provide alternative mechanisms of support to micro, small and medium-sized enterprises (MSMEs) located in a special agri-business development zone in rural Burkina Faso. The study makes use of a randomized controlled trial (RCT). It is embedded into the Bagré Growth Pole Project supported by the World Bank since 2011. The Government through the Maison de l’Entreprise du Burkina Faso (MEBF) implements it. The MEBF is a business association anchored in the Chamber of Commerce. The research hypothesis is that both interventions improve business outcomes, but cash grants are more effective than matching grants due to differences in their conditions of usage. Hence, the main questions are: (i) what is the impact of matching and cash grants on management skills, business development, profits, investment, firm survival and employment in beneficiary firms? (ii) how do both interventions compare along the different outcomes of interest and which of the two interventions is more cost-effective? (iii) do the interventions generate any positive externalities on other firms located in the Bagré Growth Pole area? Burkina Faso’s population and especially the workforce is rapidly growing. Although unemployment is low (0.6 percent), about 70 percent of Burkinabè work in low-productive agricultural activities. A key challenge for policymakers is to find effective interventions that create productive jobs for the youth. This research project seeks to provide rigorous evidence on the impacts of two private sector-based interventions – matching and cash grants – on the performance and employment by firms in agricultural value chains. These interventions provide alternative mechanisms of support to micro, small and medium-sized enterprises (MSMEs) located in a special agri-business development zone in rural Burkina Faso. The study makes use of a randomized controlled trial (RCT). It is embedded into the Bagré Growth Pole Project supported by the World Bank since 2011. The Government through the Maison de l’Entreprise du Burkina Faso (MEBF) implements it. The MEBF is a business association anchored in the Chamber of Commerce. The research hypothesis is that both interventions improve business outcomes, but cash grants are more effective than matching grants due to differences in their conditions of usage. Hence, the main questions are: (i) what is the impact of matching and cash grants on management skills, business practices, business development, turnover, profits, investment, firm survival and employment in beneficiary firms? (ii) how do both interventions compare along the different outcomes of interest and which of the two interventions is more cost-effective? (iii) do the interventions generate any positive externalities on other firms located in the Bagré Growth Pole area?
Last Published June 23, 2021 06:41 AM July 12, 2021 04:22 AM
Primary Outcomes (End Points) • Survival (firm still operating) • Productivity (returns to capital, yields) • Employment and wages paid • Survival (firm still operating) • Productivity (returns to capital, yields) • Employment, days worked and wages paid
Power calculation: Minimum Detectable Effect Size for Main Outcomes Power calculations show that a sample size of 400 firms per group allows detecting effects in the order of about 0.20 standard deviations, with at least 80% power. If the calculations account in addition for a reasonable amount of sample attrition (i.e. participants who are ‘lost’ between baseline and endline), the minimum detectable effect size increases to about 0.22 standard deviations. If a power of 90% is imposed the measurable effects increase to 0.23 and 0.26 standard deviations respectively. Controlling for baseline characteristics and using both the midterm and endline surveys together will further increase power.
Public analysis plan No Yes
Secondary Outcomes (End Points) • Profit, value added, turn over • Investment (capital, land, inventory) • Management and other business skills • Government savings in grants targeted at poor people (aggregated) • Profit, value added, turnover • Investment (capital (equipment), land incl. farmland, inputs, inventory, construction, livestock) • Management and other business skills and practices, incl. capacity to innovate • Protective effects of cash and matching grants against Covid crisis • Government savings in grants targeted at poor people (aggregated)
Secondary Outcomes (Explanation) Management skills and business practices will not only be analyzed indicator by indicator, but also through an aggreate index based on Principal Component Analysis.
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Additional+information+for+AEARCTR-0004867.pdf
MD5: 3e100c842445a0dfc6491505f28d6ac6
SHA1: fb466c175f1e41420ca1ce8c192ac8529679242c
Title Additional information for AEARCTR-0004867
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