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Trust-based social capital, institutions, and development

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  • Baliamoune-Lutz, Mina

Abstract

We estimate fixed-effects and Arellano-Bond GMM equations using panel data from a large group of developing countries and test whether trust-based social capital, proxied by contract-intensive money, complements the role of institutions in promoting development. The results we obtain provide robust evidence that social capital enhances the contribution of institutions when we focus on political institutions and weaker evidence when we use civil liberties. Both social capital and institutions have positive effects on income but the relationships these variables have with income tend to be non-monotonic. Moreover, social capital has a positive influence on the effectiveness of human capital.

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  • 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.
  • Handle: RePEc:eee:soceco:v:40:y:2011:i:4:p:335-346
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    Cited by:

    1. Corbacho, Ana & Philipp, Julia & Ruiz-Vega, Mauricio, 2015. "Crime and Erosion of Trust: Evidence for Latin America," World Development, Elsevier, vol. 70(C), pages 400-415.
    2. Zaouali, Amira, 2014. "Terms of Trade Instability, Economic Vulnerability and Economic Growth: The Role Of Institutions in Sub-Saharan Africa," MPRA Paper 52939, University Library of Munich, Germany.
    3. Edwin Oswaldo Gil Mateus, 2013. "Creencias y elecciones de confianza en estudiantes del proyecto lasallista “Utopía”. Una aproximación empírica," REVISTA FINANZAS Y POLÍTICA ECONÓMICA, UNIVERSIDAD CATOLICA DE COLOMBIA, vol. 5(2), pages 161-179, December.
    4. Sana Zaouali & Amira Zaouali, 2015. "Terms of Trade Instability, Economic Vulnerability and Economic Growth: The Role of Institutions in Sub-Saharan Africa," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(4), pages 579-590, April.
    5. Hall, Stephen G & Ahmad, Mahyudin, 2013. "Can Trust Explain Social Capital Effect on Property Rights and Growth?," MPRA Paper 48440, University Library of Munich, Germany.
    6. Guido Sechi & Alexander Tatarko & Jurgis Skilters, 2014. "Institutions, Civil Society, Trust and Quality of Life: A Social Capital- And Social Identity-Based Approach. Evidence from the Russian Federation," ERSA conference papers ersa14p595, European Regional Science Association.
    7. 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.

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