While previous studies evaluate the impact of social capital on development outcomes, there are very few empirical studies on determinants of social capital formation. We use unique long panel data from Sri Lanka to examine the mechanism of social capital formation in an imperfect credit market....

We examine whether aid proliferation hinders economic growth by applying the standard aid-growth regression to Roodman’s (2007) dataset, with proper correction for possible biases arising from omitted variable and endogeneity problems. Specifically, we include a donor-concentration index to...