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

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  • 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. Nicola Gennaioli & Ilia Rainer, 2007. "The modern impact of precolonial centralization in Africa," Journal of Economic Growth, Springer, Springer, vol. 12(3), pages 185-234, September.
  2. Philip Verwimp & Tom Bundervoet, 2008. "Consumption Growth, Household Splits and Civil War," Research Working Papers, MICROCON - A Micro Level Analysis of Violent Conflict 9, MICROCON - A Micro Level Analysis of Violent Conflict.
  3. Abhijit Banerjee & Lakshmi Iyer, 2005. "History, Institutions, and Economic Performance: The Legacy of Colonial Land Tenure Systems in India," American Economic Review, American Economic Association, American Economic Association, vol. 95(4), pages 1190-1213, September.
  4. Daron Acemoglu & Simon Johnson, 2005. "Unbundling Institutions," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 113(5), pages 949-995, October.
  5. 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, Agricultural and Applied Economics Association, vol. 91(2), pages 359-373.
  6. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc.
  7. Besley, Timothy, 1995. "Property Rights and Investment Incentives: Theory and Evidence from Ghana," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 103(5), pages 903-37, October.
  8. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, American Economic Association, vol. 91(5), pages 1369-1401, December.
  9. Louis Putterman & Valerie Bockstette, 2000. "States and Markets:the Advantage of an Early Start," Working Papers, Brown University, Department of Economics 2000-12, Brown University, Department of Economics.
  10. 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.
  11. Coate, Stephen & Ravallion, Martin, 1993. "Reciprocity without commitment : Characterization and performance of informal insurance arrangements," Journal of Development Economics, Elsevier, Elsevier, vol. 40(1), pages 1-24, February.
  12. Guido Enrico Tabellini & Torsten Persson, 1991. "Growth, Distribution and Politics," IMF Working Papers, International Monetary Fund 91/78, International Monetary Fund.
  13. Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 37(1), pages 112-156, March.
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Cited by:
  1. Maarten Voors & Eleonora Nillesen & Philip Verwimp & Erwin Bulte & Robert Lensink & Daan van Soest, 2010. "Does Conflict affect Preferences? Results from Field Experiments in Burundi," HiCN Working Papers, Households in Conflict Network 71, Households in Conflict Network.
  2. Nillesen, Eleonora & Verwim, Philip, 2010. "A Phoenix in Flames? Portfolio Choice and Violence in Civil War in Rural Burundi," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) wp2010-44, World Institute for Development Economic Research (UNU-WIDER).
  3. 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, Courant Research Centre PEG 14, Courant Research Centre PEG.

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