2008
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.Keywords: Property rights security, social capital, local governance, civil war, economic
growth, Africa
