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paper examines the impact of local Chinese aid projects on social capital in Africa. China or Chinese contractors directly … control or operate Chinese projects in Africa. This feature may disengage Africans from participating in their own local …, corruption may make people unhappy. Because of these features, Chinese aid projects may hinder the formation of social capital …
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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....
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