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Human Well‐Being Effects Of Institutions And Social Capital

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  • MINA BALIAMOUNE‐LUTZ

Abstract

We examine the effects of income, institutions, and social capital—proxied by the level of corruption and ethnic tensions—on literacy and life expectancy in Africa. Random effects estimates show that income has a robust positive influence. GMM estimates indicate that corruption reduces the effectiveness of institutions in promoting literacy. However, this effect is not monotonic; improvements in the corruption index within the high corruption range reduce the effectiveness of institutions, while continuous improvement within the low corruption range enhances the effectiveness of institutions. Similarly, ethnic tensions reduce the effectiveness of institutions. Based on these findings, we conclude that social capital and institutions can complement each other. (JEL O11, O17, Z13)

Suggested Citation

  • Mina Baliamoune‐Lutz, 2009. "Human Well‐Being Effects Of Institutions And Social Capital," Contemporary Economic Policy, Western Economic Association International, vol. 27(1), pages 54-66, January.
    • Handle: RePEc:bla:coecpo:v:27:y:2009:i:1:p:54-66
    DOI: 10.1111/j.1465-7287.2008.00096.x
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    Cited by:

    1. Xin, Guangyi, 2017. "Trust and Economic Performance: A Panel Study," MPRA Paper 80815, University Library of Munich, Germany.
    2. Mina Baliamoune-Lutz & George Mavrotas, 2009. "Aid Effectiveness: Looking at the Aid-Social Capital-Growth Nexus," Review of Development Economics, Wiley Blackwell, vol. 13(s1), pages 510-525, August.
    3. Eiji Yamamura, 2012. "Groups and information disclosure: evidence on the Olson and Putnam hypotheses in Japan," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 39(6), pages 423-439, May.
    4. Guillaumont, Patrick & McGillivray, Mark & Wagner, Laurent, 2017. "Performance Assessment, Vulnerability, Human Capital, and the Allocation of Aid Among Developing Countries," World Development, Elsevier, vol. 90(C), pages 17-26.
    5. Kathleen M. Sheehan & Andrew T. Young, 2015. "It'S A Small World After All: Internet Access And Institutional Quality," Contemporary Economic Policy, Western Economic Association International, vol. 33(4), pages 649-667, October.
    6. Mina Baliamoune, 2009. "Elites, Education and Reforms," ICER Working Papers 18-2009, ICER - International Centre for Economic Research.
    7. Eiji Yamamura, 2011. "Homeownership and investment for social capital in Japan: Dynamic Panel approach," Economics Bulletin, AccessEcon, vol. 31(3), pages 2250-2259.
    8. Yamamura, Eiji, 2010. "Public policy, trust and growth: disclosure of government information in Japan," MPRA Paper 27703, University Library of Munich, Germany.
    9. 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.
    10. Mina Baliamoune-Lutz, 2008. "On Growth and Development," ICER Working Papers 13-2008, ICER - International Centre for Economic Research.
    11. Mina Baliamoune-Lutz, 2009. "Entrepreneurship and Reforms in Developing Countries," WIDER Working Paper Series RP2009-04, World Institute for Development Economic Research (UNU-WIDER).
    12. 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.
    13. Yamamura, Eiji, 2011. "Groups and information disclosure: Olson and Putnam Hypotheses," MPRA Paper 34628, University Library of Munich, Germany.
    14. Ugur, Mehmet & Dasgupta, Nandini, 2011. "Corruption and economic growth: A meta-analysis of the evidence on low-income countries and beyond," MPRA Paper 31226, University Library of Munich, Germany, revised 31 May 2011.
    15. Mina Baliamoune, 2009. "Policy Reform and Aid Effectiveness in Africa," ICER Working Papers 19-2009, ICER - International Centre for Economic Research.
    16. Mina Baliamoune-Lutz, 2010. "Financial Development and Income in Developing Countries," ICER Working Papers 09-2010, ICER - International Centre for Economic Research.
    17. Robison, Lindon J. & Siles, Marcelo E. & Jin, Songqing, 2011. "Social capital and the distribution of household income in the United States: 1980, 1990, and 2000," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(5), pages 538-547.

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    More about this item

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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