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Making Democracy Work: Culture, Social Capital and Elections in China

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  • Gerard Padró i Miquel
  • Nancy Qian
  • Yiqing Xu
  • Yang Yao

Abstract

This paper aims to show that culture is an important determinant of the effectiveness of formal democratic institutions, such as elections. We collect new data to document the presence of voluntary and social organizations and the history of electoral reforms in Chinese villages. We use the presence of village temples to proxy for culture, or more specifically, for social (civic) capital and show that their presence greatly enhances the increase in public goods due to the introduction of elections. These results support the view that social capital complements democratic institutions such as elections.

Suggested Citation

  • Gerard Padró i Miquel & Nancy Qian & Yiqing Xu & Yang Yao, 2015. "Making Democracy Work: Culture, Social Capital and Elections in China," NBER Working Papers 21058, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:21058
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    Cited by:

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    2. Matteo Alpino & Halvor Mehlum, 2023. "Two notions of social capital," The Journal of Mathematical Sociology, Taylor & Francis Journals, vol. 47(4), pages 255-282, October.
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    4. Carmine Guerriero, 2020. "Endogenous Institutions and Economic Outcomes," Economica, London School of Economics and Political Science, vol. 87(346), pages 364-405, April.
    5. He, Quqiong & Pan, Ying & Sarangi, Sudipta, 2018. "Lineage-based heterogeneity and cooperative behavior in rural China," Journal of Comparative Economics, Elsevier, vol. 46(1), pages 248-269.
    6. Giacomo A. M. Ponzetto & Ugo Troiano, 2012. "Social capital, government expenditures, and growth," Economics Working Papers 1307, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 2024.
    7. Tang, Can & Zhao, Zhong, 2023. "Informal institution meets child development: Clan culture and child labor in China," Journal of Comparative Economics, Elsevier, vol. 51(1), pages 277-294.
    8. Chuanchuan Zhang, 2019. "Family support or social support? The role of clan culture," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(2), pages 529-549, April.
    9. Boranbay, Serra & Guerriero, Carmine, 2019. "Endogenous (in)formal institutions," Journal of Comparative Economics, Elsevier, vol. 47(4), pages 921-945.
    10. Cai, Yang & Li, Dongxu, 2024. "Modern banking development during natural disasters: Evidence from the early 20th century China," Journal of Empirical Finance, Elsevier, vol. 77(C).
    11. Zhang, Chuanchuan, 2020. "Clans, entrepreneurship, and development of the private sector in China," Journal of Comparative Economics, Elsevier, vol. 48(1), pages 100-123.
    12. Daniel Montolio & Ana Tur-Prats, 2018. "Long-lasting social capital and its impact on economic development: the legacy of the commons," Working Papers 2018/16, Institut d'Economia de Barcelona (IEB).
    13. Duc Anh Dang & Kim Khoi Dang & Thi Lan Vu, 2018. "How does joint evolution of social trust and land administration shape economic outcomes?: Evidence from Vietnam," WIDER Working Paper Series wp-2018-98, World Institute for Development Economic Research (UNU-WIDER).
    14. Tang, Can & Zhao, Zhong, 2022. "Informal institution meets child development," MERIT Working Papers 2022-032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    15. Liu, Taixing & Yin, Zhichao, 2024. "The clan and informal financing in China: An analysis of the trickle-down effect," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 646-666.
    16. Melissa Dell & Nathan Lane & Pablo Querubin, 2018. "The Historical State, Local Collective Action, and Economic Development in Vietnam," Econometrica, Econometric Society, vol. 86(6), pages 2083-2121, November.
    17. Wang, Shun, 2019. "Social capital and Rotating Labor Associations in rural China," China Economic Review, Elsevier, vol. 53(C), pages 243-253.
    18. Craig, J. Dean & Faria, Anna B., 2021. "Immigrant nationality and human capital formation in Brazil," International Journal of Educational Development, Elsevier, vol. 80(C).
    19. Bracco, Emanuele & Liberini, Federica & Lockwood, Ben & Porcelli, Francesco & Redoano, Michela & Sgroi, Daniel, 2021. "The Effects of Social Capital on Government Performance and Turnover : Theory and Evidence from Italian Municipalities," QAPEC Discussion Papers 04, Quantitative and Analytical Political Economy Research Centre.
    20. Jiangli Dou & Bing Ye, 2018. "Informal Institutions And Local Public Investments In Rural China," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(04), pages 899-916, September.
    21. Ge, Suqin & He, Quqiong & Sarangi, Sudipta, 2024. "Reaping what you sow: Historical rice farming and contemporary cooperative behavior in China," Journal of Economic Behavior & Organization, Elsevier, vol. 217(C), pages 581-613.
    22. Duc Anh Dang & Kim Khoi Dang & Thi Lan Vu, 2018. "How does joint evolution of social trust and land administration shape economic outcomes?: Evidence from Vietnam," WIDER Working Paper Series 98, World Institute for Development Economic Research (UNU-WIDER).
    23. Dang, Duc Anh & Dang, Kim Khoi & Dang, Vuong Anh & Vu, Thi Lan, 2020. "The effects of trust and land administration on economic outcomes: Evidence from Vietnam," Food Policy, Elsevier, vol. 94(C).

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    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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