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PhD Dissertation Title: Three Essays on Economic Development

[1] Access to clean cooking fuels, safe drinking water, and time-use in rural Ethiopia

Abstract

Using a panel of households from the World Bank’s living standards measurement survey, we use the three waves of Ethiopian Socioeconomic Surveys (ESS) between 2012 and 2016 to investigate the determinants of households’ choice of cooking fuel and drinking water in rural and small towns of Ethiopia. In addition, the paper exploits the variation in access to piped water and clean cooking fuel to understand the impact on the labor time-use of the household members by gender. The study employs an ordered probit model and multinomial logit models to understand the determinants of the households’ choice of fuel type and drinking water source. The paper finds that the gender of the head of a home is not a significant determinant of the choice of cooking fuel but is essential in determining the source of drinking water. To this end, the paper hopes to exploit the variation in access to clean drinking water and investigate the impact of improved water sources on time devoted to agricultural and non-agricultural labor by gender. The expected policy conclusion from this paper is to guide the optimal provision of resources to different genders

[2] WASH and children's Time-Use in some LMICs


[3] Lackson Daniel Mudenda. "Minimum Subsistence Requirement and the Environmental Kuznets Curve". [PDF]

Abstract

This paper extends Hartman and Kwon (2005) by beefing up the demand side, incorporating subsistence consumption to capture poverty levels. This extension is a theoretical extension with the aim of observing the evolution of pollution using an endogenous growth model with a minimum consumption requirement. The extension confirms the existence of the environmental Kuznets curve (EKC) and sustainable growth in the long run. However, the paper also finds that with a minimum consumption requirement (MCR) representing poverty, the turning point of the EKC is delayed.


[4] Technical Paper Replication [PDF]:

Abstract

The replicated paper was a 2017 American Economic Journal (AEJ) article: "Beach & Jones (2017), Gridlock: Ethnic Diversity in Government and the Provision of Public Goods." Exploiting close elections for a seat on a council, the authors use Regression Discontinuity Design (RDD) to examine the impact of ethnicity on public goods spending using California electoral and ethnicity data. They find two main results: the first is that an increase in diversity on the city council leads to a reduction in public goods spending; and secondly, the paper finds that the decline in public goods is highest in highly ethnically segregated cities and the members of diverse councils face reduced prospects of re-election. I extend the analyses of Beach & Jones (2017) for the most part in terms of robustness checks by changing different functional specifications for the different results. The goal of the extension paper was to ensure that the reported results in the original paper were robust in terms of bandwidth and functional form.


Masters Theses (MSc Econ @Umeå University)

[5] Corporate Income Tax Rate and Foreign Direct Investment The Case of Southern African Economies.

Abstract

Economic theory suggests that changes in taxation have an effect on foreign direct investment. This economic theory basis has stimulated interest in public economics research, and most governments attempt to exploit and utilize tax policy in the host economy so as to attract as much foreign investment as possible. Moreover, a public policy dilemma, as has been coined in public economics research, has been grappled upon in the recent past by economists in applied research. This dilemma is because FDI has been found to have a positive relationship with economic growth in most applied research, but there is no clear consensus on the relationship between Taxation and FDI. As a result, attempts by most governments from developing economies to use tax policy to attract foreign investment may seem to be a wild goose chase. In this research, we investigate the impact of Corporate Income Tax (CIT) on Foreign Direct Investment for twelve Southern African Economies using Panel Data Analysis. The estimation models applied are Fixed Effects Model, Random Effects Model and the Dynamic Panel Data Model. We find that Corporate Income tax rate has a significant negative effect on FDI.


[6]. Pollution, Electricity Consumption, and Income in the Context of Trade Openness in Zambia.

Abstract

This paper examines the Environmental Kuznets Curve (EKC) hypothesis and tests for causality using Dynamic Ordinary Least Squares (DOLS) and the Vector Error Correction Model (VECM). There is evidence of long-run relationships in the three models under consideration. The Dynamic Ordinary Least Squares (DOLS) finds no evidence to support the existence of an environmental Kuznets curve (EKC) hypothesis for Zambia in the long-run. The evidence from the long-run suggests an opposite of the Environmental Kuznets Curve (EKC), in that the results indicate a U-shaped curve relationship between income and carbon emission. The conclusion on causality based on the VECM is that there is evidence of neutrality hypothesis between either total electricity and income or between industrial electricity and income in the short-run Additionally, there is evidence of conservation hypothesis in the context of residential and agricultural electricity consumption.


Other Research

[7] Ray Miller; Lackson D. Mudenda; Lauren Vilims and Ashish K. Sedai. "Improved Sanitation Facilities and Psychosocial Development in Girls". [PDF will be updated soon]

[8] Lackson D. Mudenda; Labor Share, Inequality & Growth in Zambia

Abstract

Labor Force Participation in Zambia using the Labor Force Surveys(LFS), Zambia Revenue Data(ZRA), Penn World Tables(PWT), and the World development indicators(WDI). The aims of this paper are to characterize the evolution of the labor force and to understand the impact of labor force participation rate on inequality and growth in Zambia.

[9] Lackson Daniel Mudenda. "Foreign Asset and Domestic Credit in Africa." [PDF]

Abstract

This paper tests the monetary approach to balance paments for Africa by using data from the World Bank for all African countries for the period 1990-2019. The study employs OLS, GMM, and Panel data modeling. Despite the variation across countries and time, the study confirms that the balance of payments for Africa has a monetary phenomenon. Most of the monetary variables are found to be significant with the exception of a proxy for interest rates.


[10] Andrén, Daniela, Lackson Daniel Mudenda, and Nicklas Pettersson. Which firms employ older workers?. No. 14/2018. Working Paper, 2019. [PDF]

Abstract

There is an increasing emphasis on the importance of allowing people as they grow older to continue to work according to their work capacity and preferences. This paper builds on earlier literature that shows that firms employ older workers, but they tend not to hire them, and provides an explorative analysis of the establishments that employ older workers. A special focus is on how sensitive are the findings when the definition of older workers becomes more restrictive. Using employer-employee data from Swedish administrative registers, we found that the difference in establishments' employment is large enough to explain some of the observed differences across definitions. The retirement age in the guaranteed pension scheme, i.e., 65 years, seems to be one of the institutional settings that affect both the employees' and employers' decisions for work after 65, but also the establishment's size, age, and ownership.


[11] Lackson Daniel Mudenda. "Education, Food Security and the Agricultural Technologies in Uganda". [PDF will be updated soon]

Abstract

Educational enlightenment is the greatest thing that ever happened to mankind as it offers the opportunity to change the world. With education, humanity has learned how to grow food more efficiently due to technological improvements. The hypothesis of this paper is that education should enhance food security due to improved ways of producing food in the agricultural sector. Uganda effected a Universal Primary Education (UPE) policy in 1997. Despite this, youth unemployment and their adoption of new technologies in Agriculture have been dismal. This paper uses the Uganda National Panel surveys and differences-in-difference regression methodology to exploit the 1997 universal primary education policy to understand the impact of education on the adoption of new technologies and food security.