Tilburg University Innovation systems, saving, trust, and economic development in Africa Pamuk, H. Publication date: 2014 Document Version Publisher's PDF, also known as Version of record Link to publication in Tilburg University Research Portal Citation for published version (APA): Pamuk, H. (2014). Innovation systems, saving, trust, and economic development in Africa. CentER, Center for Economic Research. 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Download date: 29. sep. 2021 Innovation Systems, Saving, Trust, and Economic Development in Africa Proefschrift ter verkrijging van de graad van doctor aan Tilburg University op gezag van de rector magnificus, prof. dr. Ph. Eijlander, in het openbaar te verdedigen ten overstaan van een door het college voor promoties aangewezen commissie in de Ruth First zaal van de Universiteit op dinsdag 9 september 2014 om 14.15 uur door HAKI PAMUK geboren op 27 februari 1983 te Izmir, Turkije. PROMOTIECOMMISSIE: PROMOTORES: prof. dr. ir. E. H. Bulte prof. dr. D. P. van Soest OVERIGE LEDEN: dr. P. S. Dalton prof. dr. M. Grimm prof dr. M. P. Pradhan prof. dr. A. H. O. van Soest Funding: The research in this thesis was financially supported by the Netherlands Organization for Scientific Research (NWO) grant number 453-10-001. To my family... Acknowledgements Acknowledgements This thesis includes my research as a Ph.D. student at Tilburg University. While writing this thesis, many people supported, helped and shared their knowledge with me. I would like to thank some of them explicitly here. First of all, I would like to thank Erwin Bulte and Daan van Soest for their supervision throughout the writing of the thesis. When I expressed my interest in doing research on development economics to Erwin in the 2nd year of my Research Master studies, he entrusted me by giving the opportunity of evaluating the impact of a large scale development project. Thanks to him, I do research and specialize in the field which I have always wanted to work on. Besides completing this thesis might not have been possible without Daan and Erwin’s help at every stage whenever I needed guidance and advice. I learnt a lot from working on our joint papers together with them and enjoyed each one of our meetings. They never stopped encouraging and supporting me, and were always patient correcting my (especially writing) mistakes. There are also others from academia that had important contributions making this thesis possible. For instance, in the last year of my studies, I had a great opportunity to work with Thorsten Beck and Buras Uras on one of the Chapters of this thesis. Being co- authors with them was a rewarding experience, and I hope to have the chance to work with them again. Also, I am really grateful for the help and support of Fedes van Rijn for introducing me SSA-CP program and dataset - which is the basis of four Chapters in this thesis -, sharing her knowledge, and answering my endless questions. It has been (and will be) always fun working with her. I would also like to thank the external members of my PhD committee, Patricio Dalton, Michael Grimm, Menno Pradhan, and Arthur van Soest, for their time, interest and excellent feedback on my thesis. Being the teaching assistant of i Acknowledgements Henk van Gemert and Benedikt Goderis was a significant opportunity for me, and I benefited a lot from our discussions about my research during this process. Moving from Turkey to the Netherlands for Research Master and Ph.D. studies has been a wonderful experience, and I owe it mostly to my friends. I would like to thank my old house mates from so called “Number 9”: Aysegul Atakan, Gizem Hökelekli, and Hale Koç. Living together with these three girls was unique and experience, and thanks to sharing the house with you I have gained life time friends. And thank you, my dear friends Erdal Aydın, Enis Gümüş, Korhan Nazlıben, Ali Palalı, and Serhan Sadıkoğlu. Each of you endured my never ending complaints about Ph.D. student life and living at a foreign country. To forget those complaints we drank lots of beer and partied a lot. I have to admit that if aforementioned friends were not next to me, the thesis writing process and Ph.D. student life would be really boring. Most importantly, I would like to thank my family for their love and support during my academic studies (Canım ailem öğrencilik hayatımın başından bugüne kadar ki tüm destekleriniz için çok teşekkür ederim; sizler olmasanız ayakta kalamazdım). Finally, I would like to thank my girlfriend, Ioanna for being always next to me and sharing both my stress and joy while I was writing this thesis. I could not have stood without my family’s and Ioanna’s support during these studies. ii Contents Contents Chapter 1: Introduction .......................................................................................................... 1 1.1 Background .............................................................................................................. 1 1.2 Objective and research questions............................................................................. 3 1.3 Related literature ...................................................................................................... 5 1.4 Outline of the thesis ................................................................................................. 8 Chapter 2: Decentralized innovation systems and poverty reduction: Experimental evidence from Central Africa ................................................................................................................ 9 2.1 Introduction.............................................................................................................. 9 2.2 Agricultural innovations in Africa ......................................................................... 12 2.3 Program description: Introducing innovation systems in African farming ........... 15 2.4 Data ........................................................................................................................ 18 2.5 Identification: Average treatment effects and heterogeneous impact .................... 24 2.6 Estimation results for poverty indicators ............................................................... 30 2.7 Probing the mechanism: Platforms and innovation ............................................... 35 2.8 Conclusions and discussion ................................................................................... 39 Chapter 3: Do decentralized innovation systems promote agricultural technology adoption? Experimental evidence from Africa ..................................................................................... 43 3.1 Introduction............................................................................................................ 43 3.2 Program description: The SSA-CP ........................................................................ 46 3.3 Data and identification strategy ............................................................................. 49 3.4 Estimation results................................................................................................... 56 3.5 Conclusions and discussion ................................................................................... 64 Chapter 4: Implementation matters: Heterogeneity in the impact of decentralized innovation systems in Africa ................................................................................................ 69 4.1 Introduction............................................................................................................ 69 4.2 Conceptual framework........................................................................................... 71 4.3 Data description ..................................................................................................... 73 iii Contents 4.4 Constructing an “IAR4Dness” index ..................................................................... 77 4.5 Correlation analysis ............................................................................................... 78 4.6 IAR4Dness and FCS .............................................................................................. 81 4.7 Examining the mechanism: Impact of Participation to Field Activities on Intermediate Outcomes ..................................................................................................... 90 4.8 Conclusion ............................................................................................................. 92 Chapter 5: Market integration and the evolution of trust: Evidence from West Africa ..... 101 5.1 Introduction.......................................................................................................... 101 5.2 Data .....................................................................................................................