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Beyond Fatalism - An empirical exploration of self-efficacy and aspirations failure in Ethiopia

Tanguy Bernard, Stefan Dercon and Alemayehu Taffesse

No 2011-03, CSAE Working Paper Series from Centre for the Study of African Economies, University of Oxford

Abstract: Fatalism is considered pervaisve, not leaste within many poor communities. In this paper, we explore whether 'fatalistic' beliefs have implications for the attitudes and behaviour of poor rural households towards investment in the future. We first explore the idea of fatalos, drawing inspiration from theories in psychology focusing on the role of locus of control and self-efficacy, and from the theoretical framework of aspiration failure as developed in recent economic literature. using survey data from rural Ethiopia, we find evidence of fatalistic beliefs among a substantial group of rural households, as well as indicators consistent withy a small aspiration gap and low self-efficay. We also find that such beliefs consistently correlate with lower demand for credit, in terms of loan size, repayment horzon and productive purposes.

Date: 2011
New Economics Papers: this item is included in nep-afr, nep-dev, nep-ent and nep-mfd
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Related works:
Working Paper: Beyond Fatalism: an Empirical Exploration of Self-Efficacy and Aspirations Failures in Ethiopia (2019)
Working Paper: Beyond fatalism: An empirical exploration of self-efficacy and aspirations failure in Ethiopia (2012) Downloads
Working Paper: Beyond fatalism: An empirical exploration of self-efficacy and aspirations failure in Ethiopia (2011) Downloads
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