[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-113294-en":3,"doc-seo-113294-105":29,"detail-sidebar-cat-0-en-105":90},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":4,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":13,"seo_description":14,"update_tm":27,"read_time":28},113294,8796095461610,"Oliver","https://ap-avatar.wpscdn.com/davatar_276721f389ce27ea32af1340a28f341c",8,"Research & Report","The Spillover Impact of Index Insurance on Agricultural Investment by Cotton Farmers in Burkina Faso","This paper examines whether agricultural insurance can stimulate investment by smallholder farmers in West Africa, using a randomized evaluation focused on cotton farmers in Burkina Faso. No impact is found on cotton investment, yet significant spillover effects emerge for investment in other agricultural activities, consistent with microeconomic theory. Evidence from insurance payouts after shocks supports index insurance as a risk-management tool. Implementation weaknesses limiting effects on cotton are identified, while a hybrid mixed-methods RCT provides lessons for evaluating complex interventions involving trust, understanding, and timing.","Pub lic Disclosure Authorized Pub lic Disclosure Authorized  \nThe World Bank Economic Review, 36(1), 2022, 114–140  \n[https://doi.org10.1093/wber/lhab011](https://doi.org10.1093/wber/lhab011)  \nArticle  \nThe Spillover Impact of Index Insurance on Agricultural Investment by Cotton Farmers in Burkina Faso  \nQuentin Stoeffler , Michael Carter, Catherine Guirkinger,  \nand Wouter Gelade  \nAbstract  \nThis paper examines whether agricultural insurance can boost investment by small scale farmers in West Africa. It is based on a randomized evaluation designed to analyze the impacts of index insurance for cotton farmers in Burkina Faso. No impact of insurance was found on cotton, but, consistent with microeconomic theory, significant spillover impacts on investment in other agricultural activities were measured. Furthermore, the effects of insurance payouts on farmers hit by a shock confirm the potential of index insurance as a riskmanagement tool. However, this research uncovers important flaws in the implementation of the project that limited its impact on cotton. Overall, this study suggests a promising role for index insurance in stimulating investment, but also draws attention to key challenges to the efficient delivery of insurance to small farmers. Finally, the study’s hybrid, mixed methods RCT offers lessons for the evaluation of complex interventions where trust, understanding, and timing are all important.  \nJEL classification: G22, I38, O12, O13, Q12  \nKeywords: index insurance, Burkina Faso, productive investments, randomized evaluation, mixed-methods  \n1. Introduction  \nAn increasing amount of evidence suggests that the lack of instruments for risk management plays a major role in limiting poor households’ ability to accumulate assets and improve their future well-being.  \nQuentin Stoeffler (corresponding author) is an assistant professor in the Department of Economics, Istanbul Technical University, Turkey; [his email address is stoeffler@itu.edu.tr. Michael Carter is a professor in the Department of Agri](his email address is stoeffler@itu.edu.tr. Michael Carter is a professor in the Department of Agri)cultural and Resource Economics, University of California, Davis, and the University of Cape Town; his email address [is mrcarter@ucdavis.edu. Catherine Guirkinger](is mrcarter@ucdavis.edu. Catherine Guirkinger) is a professor at the University of Namur, Belgium; her email address is [catherine.guirkinger@unamur.be. Wouter Gelade](catherine.guirkinger@unamur.be. Wouter Gelade) is a researcher at the National Bank of Belgium and at the University of Namur; his email address [is wouter.gelade@nbb.be. We are](is wouter.gelade@nbb.be. We are) very grateful to Karim Pare and his team for excellent data collection efforts. We thank Thomas Barré for useful comments and suggestions, as well as seminar participants at Istanbul Technical University, Bahçeehir University, Bo˘gaziçi University, and various conferences. We also thank Inclusive Guarantee and SOFITEX for their support and for providing access to data. The research for this article was financed by generous funding from the United States Agency for International Development through the BASIS Assets and Market Access Innovation Lab grant no. EDH-A-00-06-0003-00. Quentin Stoeffler also acknowledges support from Istanbul Technical University’s Bilimsel Aratırma Projeleri (BAP) unit, grant number SAB-2018-41143 . Wouter Gelade thanks FNRS (Fonds de la Recherche Scientifique) for financial support. The opinions expressed are strictly those of the authors and do not necessarily reflect the views of the National Bank of Belgium. A supplementary online appendix for this article can be found at The World Bank Economic Review website.  \n© The Author(s) 2021 . Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / THE WORLD BANK.  \nAll rights reserved. For permissions, please e-mail: [journals.permissions@oup.com](journals.permiss","cbCaifoMEMrnqjvE","https://ap.wps.com/l/cbCaifoMEMrnqjvE","pdf",450847,1,27,"English","en",105,"# Introduction\n## Risk management constraints and investment\n## Index insurance as an alternative\n## Study design and evaluation focus","[{\"question\":\"Does index insurance increase investment in cotton for farmers in Burkina Faso?\",\"answer\":\"No impact of insurance is found on cotton investment, indicating limited effects on this specific crop.\"},{\"question\":\"What spillover effects does the study find from index insurance?\",\"answer\":\"The study measures significant spillover impacts on investment in other agricultural activities beyond cotton.\"},{\"question\":\"How do insurance payouts after shocks relate to the effectiveness of index insurance?\",\"answer\":\"Effects of insurance payouts on farmers affected by shocks support the potential of index insurance as a risk-management tool.\"}]",1784502337,68,{"code":4,"msg":30,"data":31},"ok",{"site_id":24,"language":23,"slug":32,"title":13,"keywords":33,"description":14,"schema_data":34,"social_meta":85,"head_meta":87,"extra_data":89,"updated_unix":27},"the-spillover-impact-of-index-insurance-on-agricultural-investment-by-cotton-farmers-in-burkina-faso","",{"@graph":35,"@context":84},[36,53,67],{"@type":37,"itemListElement":38},"BreadcrumbList",[39,43,47,50],{"item":40,"name":41,"@type":42,"position":20},"https://docshare.wps.com","Home","ListItem",{"item":44,"name":45,"@type":42,"position":46},"https://docshare.wps.com/document/","Document",2,{"item":48,"name":12,"@type":42,"position":49},"https://docshare.wps.com/document/research-report/",3,{"item":51,"name":13,"@type":42,"position":52},"https://docshare.wps.com/document/the-spillover-impact-of-index-insurance-on-agricultural-investment-by-cotton-farmers-in-burkina-faso/113294/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":23,"description":14,"dateModified":61,"datePublished":61,"encodingFormat":60,"isAccessibleForFree":62,"interactionStatistic":63},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":40,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-19",true,{"@type":64,"interactionType":65,"userInteractionCount":4},"InteractionCounter",{"@type":66},"ViewAction",{"@type":68,"mainEntity":69},"FAQPage",[70,76,80],{"name":71,"@type":72,"acceptedAnswer":73},"Does index insurance increase investment in cotton for farmers in Burkina Faso?","Question",{"text":74,"@type":75},"No impact of insurance is found on cotton investment, indicating limited effects on this specific crop.","Answer",{"name":77,"@type":72,"acceptedAnswer":78},"What spillover effects does the study find from index insurance?",{"text":79,"@type":75},"The study measures significant spillover impacts on investment in other agricultural activities beyond cotton.",{"name":81,"@type":72,"acceptedAnswer":82},"How do insurance payouts after shocks relate to the effectiveness of index insurance?",{"text":83,"@type":75},"Effects of insurance payouts on farmers affected by shocks support the potential of index insurance as a risk-management tool.","https://schema.org",{"og:url":51,"og:type":86,"og:title":13,"og:site_name":58,"og:description":14},"article",{"robots":88,"canonical":51},"index,follow",{"doc_id":7,"site_id":24},{"code":4,"msg":5,"data":91},[92,96,100,104,109,114,119,122,127,130,134],{"id":20,"doc_module":4,"doc_module_name":45,"category_name":93,"show_sort_weight":94,"slug":95},"Story & Novel",90,"story-novel",{"id":46,"doc_module":4,"doc_module_name":45,"category_name":97,"show_sort_weight":98,"slug":99},"Literature",80,"literature",{"id":52,"doc_module":4,"doc_module_name":45,"category_name":101,"show_sort_weight":102,"slug":103},"Exam",70,"exam",{"id":105,"doc_module":4,"doc_module_name":45,"category_name":106,"show_sort_weight":107,"slug":108},5,"Comic",60,"comic",{"id":110,"doc_module":4,"doc_module_name":45,"category_name":111,"show_sort_weight":112,"slug":113},6,"Technology",50,"technology",{"id":115,"doc_module":4,"doc_module_name":45,"category_name":116,"show_sort_weight":117,"slug":118},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":45,"category_name":12,"show_sort_weight":120,"slug":121},30,"research-report",{"id":123,"doc_module":4,"doc_module_name":45,"category_name":124,"show_sort_weight":125,"slug":126},9,"Religion & Spirituality",20,"religion-spirituality",{"id":125,"doc_module":4,"doc_module_name":45,"category_name":128,"show_sort_weight":125,"slug":129},"World Cup","world-cup",{"id":131,"doc_module":4,"doc_module_name":45,"category_name":132,"show_sort_weight":131,"slug":133},10,"Lifestyle","lifestyle",{"id":135,"doc_module":4,"doc_module_name":45,"category_name":136,"show_sort_weight":105,"slug":137},19,"General","general"]