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Research related to:  Social Capital

Eroding the Culture of Contracting: Aid, Not Trade?

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We analyze how two well-known development policies—international trade and aid—affects the ‘culture of contracting.’ The culture of contracting refers to those cultural characteristics—trust, respect, level of self-determination, and level of obedience—which allow for the impersonal exchange necessary for growth and development. Theoretically, trade and aid may affect the culture of contracting for better or worse. We empirically analyze both possibilities and find that international trade generates, on net, positive effects while foreign aid generates negative effects on the culture of contracting. The more open a country is to trade and the less aid it receives, the more likely it is to possess a stronger culture of contracting.
Christopher J. Coyne and Claudia R. Williamson

Civilizing Society

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This paper attempts to answer two important questions in economics. First, what virtues are important for promoting economic progress? Second, what is the source of these virtues? To answer these questions, I rely on recent studies suggesting that the virtues of trustworthiness, tolerance and respect, and individual determination are important for understanding how civil society supports economic prosperity. Specifically, trust, respect, and individual motivation encourage and support economic freedom. I also explore competing explanations for the determinants of virtues including religion, the role of government, and the act of economic exchange for civilizing society. My analysis finds support for the latter source. . . 
Claudia R. Williamson

Information, Social Networks and the Demand for Public Goods: Experimental Evidence from Benin

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This paper empirically investigates the effects of memberships in information and social networks on the demand for public goods. The data originate from a unique …field experiment that took place during the …first round of the 2001 presidential elections in Benin. Randomly selected villages were exposed to "purely" redistributive or "purely" national public goods electoral platforms, while the remaining villages were exposed to standard mixed platforms. We …find that individuals who are exposed to media or who are members of local associations have higher demand for public goods, while voters who are more involved in political discussions demand less. Ceteris paribus, demand for public goods is higher among voters who have ethnic ties with a candidate, are more educated or female, but we fi…nd no modifying effect of religion or socio-economic status.
Leonard Wantchekon and Christel Vermeersch