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

Author

Listed:
  • Maarten J. Voors

    () (Development Economics Group, Wageningen University)

  • Erwin H. Bulte

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

Abstract

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.

Suggested Citation

  • Maarten J. Voors & Erwin H. Bulte, 2008. "Unbundling Institutions at the Local Level: Conflict, Institutions and Income in Burundi," HiCN Working Papers 49, Households in Conflict Network.
  • Handle: RePEc:hic:wpaper:49
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    References listed on IDEAS

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    Cited by:

    1. Maarten Voors & Eleonora Nillesen & Philip Verwimp & Erwin Bulte & Robert Lensink & Daan van Soest, 2010. "Does Conflict affect Preferences? Results from Field Experiments in Burundi," Research Working Papers 21, MICROCON - A Micro Level Analysis of Violent Conflict.
    2. Michael Grimm & Stephan Klasen, 2009. "Endogenous Institutional Change and Economic Development: A Micro-Level Analysis of Transmission Channels," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 14, Courant Research Centre PEG.
    3. Nillesen, Eleonora & Verwim, Philip, 2010. "A Phoenix in Flames? Portfolio Choice and Violence in Civil War in Rural Burundi," WIDER Working Paper Series 044, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Property rights security; social capital; local governance; civil war; economic growth; Africa;

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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