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Do community-driven development projects enhance social capital? Evidence from the Philippines

  • Labonne, Julien
  • Chase, Robert S.
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    We explore the social capital impacts of a community-driven development project in the Philippines in which communities competed for block grants for infrastructure investment. The analysis uses a unique panel data set of about 2100 households, aggregated at the village-level, collected in 66 treatment and 69 comparison communities. We provide both difference-in-differences and propensity score matching estimates. We find that the project increased participation in village assemblies and the frequency with which local officials meet with residents and had a negative impact on collective action. There is also more limited evidence of a positive impact of the project on bridging (i.e., generalized) trust and of a negative impact on group membership.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0304387810001008
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    Article provided by Elsevier in its journal Journal of Development Economics.

    Volume (Year): 96 (2011)
    Issue (Month): 2 (November)
    Pages: 348-358

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    Handle: RePEc:eee:deveco:v:96:y:2011:i:2:p:348-358
    Contact details of provider: Web page: http://www.elsevier.com/locate/devec

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    1. Alesina, Alberto F & La Ferrara, Eliana, 2000. "Who Trusts Others?," CEPR Discussion Papers 2646, C.E.P.R. Discussion Papers.
    2. Barron, Patrick & Diprose, Rachael & Woolcock, Michael, 2007. "Local conflict and development projects in Indonesia : part of the problem or part of a solution ?," Policy Research Working Paper Series 4212, The World Bank.
    3. Marcel Fafchamps & Susan Lund, . "Risk Sharing Networks in Rural Philippines," Working Papers 97014, Stanford University, Department of Economics.
    4. Benjamin A. Olken, 2007. "Monitoring Corruption: Evidence from a Field Experiment in Indonesia," Journal of Political Economy, University of Chicago Press, vol. 115, pages 200-249.
    5. Jean-Louis Arcand & Léandre Bassole, 2011. "Does Community Driven Development Work? Evidence from Senegal," Working Papers halshs-00564574, HAL.
    6. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2007. "Bootstrap-Based Improvements for Inference with Clustered Errors," NBER Technical Working Papers 0344, National Bureau of Economic Research, Inc.
    7. Prokopy, Linda Stalker, 2005. "The relationship between participation and project outcomes: Evidence from rural water supply projects in India," World Development, Elsevier, vol. 33(11), pages 1801-1819, November.
    8. Jeffrey R Kling & Jeffrey B Liebman & Lawrence F Katz, 2007. "Experimental Analysis of Neighborhood Effects," Econometrica, Econometric Society, vol. 75(1), pages 83-119, 01.
    9. David McKenzie, 2005. "Measuring inequality with asset indicators," Journal of Population Economics, Springer, vol. 18(2), pages 229-260, 06.
    10. Todd, Petra E., 2008. "Evaluating Social Programs with Endogenous Program Placement and Selection of the Treated," Handbook of Development Economics, Elsevier.
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