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Trust-based social capital, institutions, and development

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  • Baliamoune-Lutz, Mina

Abstract

We estimate fixed-effects and Arellano-Bond GMM equations using panel data from a large group of developing countries and test whether trust-based social capital, proxied by contract-intensive money, complements the role of institutions in promoting development. The results we obtain provide robust evidence that social capital enhances the contribution of institutions when we focus on political institutions and weaker evidence when we use civil liberties. Both social capital and institutions have positive effects on income but the relationships these variables have with income tend to be non-monotonic. Moreover, social capital has a positive influence on the effectiveness of human capital.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics).

Volume (Year): 40 (2011)
Issue (Month): 4 (August)
Pages: 335-346

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Handle: RePEc:eee:soceco:v:40:y:2011:i:4:p:335-346

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Web page: http://www.elsevier.com/locate/inca/620175

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Keywords: Contract-intensive money Social capital Institutions Development Africa;

References

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Cited by:
  1. Hall, Stephen G & Ahmad, Mahyudin, 2013. "Can Trust Explain Social Capital Effect on Property Rights and Growth?," MPRA Paper 48440, University Library of Munich, Germany.
  2. Zaouali, Amira, 2014. "Terms of Trade Instability, Economic Vulnerability and Economic Growth: The Role Of Institutions in Sub-Saharan Africa," MPRA Paper 52939, University Library of Munich, Germany.

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