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Unbundling Institutions at the Local Level: Conflict, Institutions and Income in Burundi

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Author Info

  • Maarten J. Voors

    ()
    (Development Economics Group, Wageningen University)

  • Erwin H. Bulte

    ()
    (Development Economics Group, Wageningen University & Department of Economics, Tilburg University, Netherlands)

Abstract

We use a new dataset from Burundi to analyze the role of local institutions as determinants of income, distinguishing between three distinct dimensions of the institutional framework: (i) property rights security, (ii) local political leadership and (iii) social capital. Using measures of conflict intensity during the civil war as instruments for local institutional quality, we demonstrate that property rights security is the most significant driver of longterm income. These insights extend earlier results from cross-country income regressions, and confirm the scope for institutional reform to lift African communities out of poverty.

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Bibliographic Info

Paper provided by Households in Conflict Network in its series HiCN Working Papers with number 49.

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Length: 44 pages
Date of creation: Sep 2008
Date of revision:
Handle: RePEc:hic:wpaper:49

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Web page: http://www.hicn.org

Related research

Keywords: Property rights security; social capital; local governance; civil war; economic growth; Africa;

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References

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  1. Abhijit Banerjee & Lakshmi Iyer, 2010. "History Institutions and Economic Performance: The Legacy of Colonial Land Tenure Systems in India," Working Papers id:2811, eSocialSciences.
  2. Coate, Stephen & Ravallion, Martin, 1993. "Reciprocity without commitment : Characterization and performance of informal insurance arrangements," Journal of Development Economics, Elsevier, vol. 40(1), pages 1-24, February.
  3. Bouma, Jetske & Bulte, Erwin & van Soest, Daan, 2008. "Trust and cooperation: Social capital and community resource management," Journal of Environmental Economics and Management, Elsevier, vol. 56(2), pages 155-166, September.
  4. Daron Acemoglu & Simon Johnson & James A. Robinson, 2000. "The Colonial Origins of Comparative Development: An Empirical Investigation," NBER Working Papers 7771, National Bureau of Economic Research, Inc.
  5. Philip Verwimp & Tom Bundervoet, 2008. "Consumption Growth, Household Splits and Civil War," Working Papers ECARES 2008_023, ULB -- Universite Libre de Bruxelles.
  6. Nicola Gennaioli & Ilia Rainer, 2007. "The modern impact of precolonial centralization in Africa," Journal of Economic Growth, Springer, vol. 12(3), pages 185-234, September.
  7. Besley, Timothy, 1995. "Property Rights and Investment Incentives: Theory and Evidence from Ghana," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 903-37, October.
  8. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output Per Worker Than Others?," The Quarterly Journal of Economics, MIT Press, vol. 114(1), pages 83-116, February.
  9. Daron Acemoglu & Simon Johnson, 2005. "Unbundling Institutions," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 949-995, October.
  10. Guido Enrico Tabellini & Torsten Persson, 1991. "Growth, Distribution and Politics," IMF Working Papers 91/78, International Monetary Fund.
  11. Stein T. Holden & Klaus Deininger & Hosaena Ghebru, 2007. "Impacts of Low-Cost Land Certification on Investment and Productivity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(2), pages 359-373.
  12. Bockstette, Valerie & Chanda, Areendam & Putterman, Louis, 2002. " States and Markets: The Advantage of an Early Start," Journal of Economic Growth, Springer, vol. 7(4), pages 347-69, December.
  13. Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March.
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Cited by:
  1. M. Voorst & E. Nillesen & Philip Verwimp & E. Bulte & Robert Lensink & D. van Soest, 2010. "Does conflict affect preferences? Results from field experiments in Burundi," Working Papers ECARES 2010_006, ULB -- Universite Libre de Bruxelles.
  2. Michael Grimm & Stephan Klasen, 2009. "Endogenous Institutional Change and Economic Development: A Micro-Level Analysis of Transmission Channels," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 14, Courant Research Centre PEG.
  3. Nillesen, Eleonora & Verwim, Philip, 2010. "A Phoenix in Flames? Portfolio Choice and Violence in Civil War in Rural Burundi," Working Paper Series wp2010-44, World Institute for Development Economic Research (UNU-WIDER).

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