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

  • Maarten J. Voors

    ()

    (Development Economics Group, Wageningen University)

  • Erwin H. Bulte

    ()

    (Development Economics Group, Wageningen University & Department of Economics, Tilburg University, Netherlands)

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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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
Contact details of provider: Web page: http://www.hicn.org

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  11. Besley, Timothy, 1995. "Property Rights and Investment Incentives: Theory and Evidence from Ghana," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 903-37, October.
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