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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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  • Baliamoune-Lutz, Mina, 2011. "Trust-based social capital, institutions, and development," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(4), pages 335-346, August.
    • Handle: RePEc:eee:soceco:v:40:y:2011:i:4:p:335-346
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    5. 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.
    6. Edwin Oswaldo Gil Mateus, 2013. "Creencias y elecciones de confianza en estudiantes del proyecto lasallista “Utopía”. Una aproximación empírica," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 5(2), pages 161-179, December.
    7. Sana Zaouali & Amira Zaouali, 2015. "Terms of Trade Instability, Economic Vulnerability and Economic Growth: The Role of Institutions in Sub-Saharan Africa," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(4), pages 579-590, April.
    8. Jasmine Mondolo, 2018. "How do informal institutions influence inward FDI? A systematic review," "Marco Fanno" Working Papers 0218, Dipartimento di Scienze Economiche "Marco Fanno".
    9. Guido Sechi & Alexander Tatarko & Jurgis Skilters, 2014. "Institutions, Civil Society, Trust and Quality of Life: A Social Capital- And Social Identity-Based Approach. Evidence from the Russian Federation," ERSA conference papers ersa14p595, European Regional Science Association.
    10. Jasmine Mondolo, 2019. "How do informal institutions influence inward FDI? A systematic review," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(1), pages 167-204, April.
    11. Ahmad, Mahyudin & Hall, Stephen G., 2014. "Explaining social capital effects on growth and property rights via trust-alternative variables," MPRA Paper 58358, University Library of Munich, Germany.
    12. Maria Micaela Sviatschi, 2018. "Making a Narco: Childhood Exposure to Illegal Labor Markets and Criminal Life Paths," Working Papers sviatschi_making-a-narco_, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
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