Haseeb, Muhammad (2020) Essays in development economics and political economy. PhD thesis, University of Warwick.

PDF WRAP_Theses_Haseeb_2020.pdf - Submitted Version Embargoed item. Restricted access to Repository staff only until 2 September 2022. Contact author directly, specifying your specific needs. - Requires a PDF viewer. Download (11Mb)

Request Changes to record.

Abstract

This thesis is a collection of three chapters studying the role of formal and informal institutions in economic development within low income countries. The first chapter emphasizes the importance of informal institutions and social capital in a setting where formal institutions are generally weak. I show that water scarcity can have a different effect on cooperation over water, depending on whether the shortage is transitory or long term. Using daily outlet-level water theft data from Pakistan, I first show that an unexpected short-term water shortage increases the probability of the over-extraction of surface water. Then, I examine how farmers respond to long-term scarcity by exploiting a natural experiment that decreases the effective availability of groundwater — the key substitute for surface water — through an increase in groundwater pollution. The instrumented differencein-differences estimates show that, in contrast to a short-term shock, long-term scarcity increases inter-village cooperation. Finally, I provide evidence that informal institutions and caste networks are important for managing water theft under prolonged scarcity. Taken together, these results suggest that long-term environmental change can push communities to adapt by investing in informal mechanisms that enforce cooperation.

In the second chapter, co-authored with James Fenske and Namrata Kala, the focus shifts away from the informal institutions and we explore how formal institutions affect firm size distribution in India. Specifically, we study the impact of environmental regulations on firm entry and size. We assemble novel data on more than half a million environmental permit applications by Indian firms. Using event study framework, we show that a 2016 re-categorization reform that lowered the regulatory burden in several industries has heterogeneous effects - lowering the regulatory burden from high to medium increased the number of applications from new firms, and reduced the size of the marginal new entrant in terms of both labor and capital. New entrants spent less on pollution abatement. However, lowering the regulatory burden from medium to low has no effect. Further, we demonstrate several discontinuities in the firm size distribution that correspond to regulatory and fee thresholds.

The first chapter documents the importance of collective action in developing countries. In the last chapter, co-authored with Aiman Farruk, we highlight the short- and long-term impacts of collective action in a different context. We explore whether women’s involvement in a social movement can affect their labor force participation and change household investment in girls’ education. To do so, we study one of the largest land struggles in Pakistan – Anjuman-e-Mazareen Punjab (AMP). The movement had pushed tenant farmers from several districts in Punjab to protest against a proposed change in lease agreements on stateowned land. At a time when most women in the country were mobility constrained, these circumstances forced some women to join the AMP movement and become an integral part of it. We use 16 years of individual-level data and use difference-in-differences and triple difference approach, to document two key results. First, the movement increased women’s labor force participation, but this affect disappears after 2008. Second, the movement led to an increase in school enrollment and secondary school completion among the younger cohort. Finally, consistent with qualitative studies, we find suggestive evidence that the effect on increased investment in girls’ education is driven by increased involvement of women in decision making within households.

Item Type:	Thesis or Dissertation (PhD)
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor
Library of Congress Subject Headings (LCSH):	Environmental policy -- Economic aspects -- Developing countries, Environmental policy -- Economic aspects -- India, Informal sector (Economics) -- Developing countries, Informal sector (Economics) -- Pakistan, Droughts -- Economic aspects -- Pakistan, Labor supply -- Pakistan, Women -- Education -- Pakistan, Developing countries -- Economic conditions, Pakistan -- Economic conditions
Official Date:	June 2020
Dates:	Date Event June 2020 UNSPECIFIED
Institution:	University of Warwick
Theses Department:	Department of Economics
Thesis Type:	PhD
Publication Status:	Unpublished
Supervisor(s)/Advisor:	Fenske, James ; Gadenne, Lucie ; Mukand, Sharun W.
Sponsors:	Economic and Social Research Council (Great Britain)
Format of File:	pdf
Extent:	vii, 149 leaves : illustrations (some colour), maps (some colour)
Language:	eng

Request changes or add full text files to a record

Repository staff actions (login required)

View Item