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Official development assistance, social capital and growth in Latin America

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  • Neira, Isabel
  • Lacalle-Calderón, Maricruz
  • Portela, Marta

Abstract

This study focuses on the relationship among official development assistance (ODA), social capital and economic growth in Latin American countries, attempting to determine whether the impact of such assistance on growth is conditional on the receiving country’s stock of social capital. To this end, we use “trust” to measure social capital in an unbalanced panel of 18 Latin American countries over the period 2001-2010. After accounting for country and time effects in a dynamic panel data model, our results show that the impact of ODA on growth is indeed conditional on the level of trust that exists. This suggests that this assistance will be more effective when used in a trust-rich environment.

Suggested Citation

  • Neira, Isabel & Lacalle-Calderón, Maricruz & Portela, Marta, 2016. "Official development assistance, social capital and growth in Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
  • Handle: RePEc:ecr:col070:40787
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    Cited by:

    1. Suk-Won Lee & Jae-Keun Jeon, 2018. "Dynamic Relationships between Mega Projects and Official Development Assistance: Case of South Korean Infrastructure Construction Projects in ASEAN’s Developing Countries," Sustainability, MDPI, vol. 10(12), pages 1-22, November.

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    More about this item

    Keywords

    DESARROLLO ECONOMICO; ASISTENCIA AL DESARROLLO; CRECIMIENTO ECONOMICO; CAPITAL SOCIAL; MODELOS ECONOMETRICOS; ECONOMIC DEVELOPMENT; DEVELOPMENT ASSISTANCE; ECONOMIC GROWTH; SOCIAL CAPITAL; ECONOMETRIC MODELS;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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