Connections, Gender, and Access to State-Facilitated Private-Sector Development: Evidence from a Field Experiment in Senegal.
In developing countries, access to opportunities within the private sector are often unequally distributed. Disproportionate advantages may accrue to those with connections to the state or to those with higher social standing. In this paper, I causally estimate the impact of political and social determinants of access to private-sector development under unevenly enforced rule of law. I do so by implementing a field experiment in Senegal in which I operate a registered business and randomize political partisanship and gender during entrepreneurs' applications for valuable business permits at municipal councils. I find that co-partisan applicants deal with fewer steps in the application process and are more likely to successfully deposit an application. Women, by contrast, are more likely to have their applications rejected, despite following the same procedures as men. These results highlight the specific steps along the institutional pathway where political and social connections are most influential, and offer causal evidence to inform policy to reduce the barriers facing entrepreneurs in developing countries.
Private-Sector Support for Programmatic Candidates: Evidence from Senegal (with Jessica Gottlieb).
Private-sector actors in developing countries often value clientelistic policies, which can deepen existing inequalities and market segmentation. Under what conditions will business owners vote for programmatic candidates that campaign on impersonal, universalistic policies instead of more particularistic ones? We argue that firm formality plays a critical role in moderating support for clientelistic candidates. Formal firms, facing complex local political pressures, are more likely to support programmatic candidates, and informal firms who believe they might formalize similarly break away from the cycle of clientelism. Using evidence from a survey on political connections and an embedded information experiment conducted with firm owners in the formal and informal sectors ahead of Senegal's local elections in 2022, we demonstrate the conditions under which workers prefer programmatic candidates.
Political Connections, Patronage, and Consumer Attitudes: Evidence from Morocco (with Erin York).
Clientelism alters citizens’ behavior as voters, but can it also impact citizens as consumers? We argue that despite voting for politicians who offer targeted goods, citizens abstain from financial transactions with these politicians in the future. Clientelistic politicians, by demonstrating their willingness to bend rules in the electoral process, lead consumers to believe they will also be untrustworthy in a transactional environment. We test this theory using evidence from a conjoint experiment in Morocco, a country where politicians often have one foot in the private sector. The results demonstrate the linkages between patronage networks and consumer behavior in contexts characterized by clientelism and suggest that political support does not necessarily translate to economic support.
Firm Strategies, Weak Rule of Law: Property Rights, Forum Shopping, and Contract Enforcement in Developing Countries.
How do firms secure their property rights when deals are broken in societies with weak rule of law? I administered a survey with an embedded experiment to formal and informal firms in Senegal. Firm managers stated their likelihood of using various legal and social enforcement strategies when a business partner reneged on a randomized formal or informal contract. The survey results provide needed descriptive evidence of formal and informal firms’ divergent strategies for protecting property rights, and experimental evidence that formal contracts increase dependence on legal institutions—and decrease dependence on social institutions—for property rights security.
The Political Nature of Entrepreneurship in Developing Countries: Experimental Evidence from Tunisia and Senegal (with Robert Kubinec, Sekou Jabateh, and Hamza Mighri).
Substituting For Rule of Law: Bilateral Investment Treaties and U.S. Firms' Investment in Developing Countries (with Joonseok Yang). Revise and resubmit.
Bilateral investment treaties (BITs) can encourage foreign investment in developing countries, but may also have unintentional political consequences. We argue that by enabling investment in weak institutional contexts, BITs substitute for judicial institutions in attracting foreign investment. We test the interactive effect of BITs and institutional strength in developing countries, and find supportive evidence that BITs substitute for judicial institutions in attracting investment—but solely on the intensive margin of investment.