Cash grants to manufacturers after Cyclone Idai: RCT evidence from Mozambique

Hanna Berkel, Peter Fisker and Finn Tarp

No wp-2021-87, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: In March 2019, Cyclone Idai hit central Mozambique and caused widespread damage, including businesses in the enterprise sector. We use panel data and a randomized controlled trial to estimate the impact of unconditional cash grants on micro enterprises and their recovery. We find that, on average, the cash grants had a positive effect on firm revenue, profits and savings, and the likelihood of having their roof repaired. The cash had a stronger impact in the more damaged city (Beira) compared to the less affected location (Chimoio) and was particularly effective for carpenters.

Keywords: Firms; Manufacturing; Natural disasters; Cash transfers; Randomized controlled trial (search for similar items in EconPapers)
Date: 2021
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