We examine the impact of institutional quality and social capital on aid effectiveness. We find strong evidence that social capital and institutions enhance aid effectiveness. Moreover, once we account for the role of social capital and institutions, the impact of policies tend to disappear....

Using cross-sectional time series data from a large group of African countries, we examine the effects of income, institutions and social capital - with emphasis on the latter - on literacy and life expectancy. The empirical results confirm that income has a positive contribution. We also show...

Using 1975-2000 panel data, this paper examines the effects of institutions and social capital, in the form of generalized trust (proxied by contract-intensive money), on economic development in 39 African countries. The results indicate that there is a robust positive influence of social...

Using cross-sectional time series data, we examine the effects of income, institutions and social capital on literacy and life expectancy. An improvement in institutions has positive influence on literacy but does not seem to affect life expectancy. In addition, countries with high income may...