Stable networks of cooperation, through which persons act under assumptions of reciprocity, promise-keeping and trust, are necessary for any society to flourish. These relationships have been described as “social capital”, defined as the norms and networks that enable collective action. Whilst study of social capital has generated much attention from those interested in its consequences for economic development and social unity, there remains a certain gap within the social sciences between homo economicus assumptions of self-motivated behaviour and manifestations of social capital. This invites analysis into the causes of social capital, which is the question taken up in this thesis. Asking what necessary conditions facilitate social capital’s emergence, this study analyses trustful relationships in urban Kenya and Tanzania. Urban living acts as a litmus test to trust relations and helps expose the necessary forces for social capital’s creation. Alongside this, the research sites of Kenya and Tanzania assisted in controlling for historical and cultural factors that may blur causal accounts of social capital. The two countries share similarities in their political, social and economic histories and, at the same time, exhibit diverging political emphases since independence and resulting levels of citizen-on-citizen trust. The country-level similarities and differences thus help contrast the lower levels of urban trust found in Kenya against the higher levels found in Tanzania, allowing in-depth examination of the conditions that support social capital’s emergence. Evidence is offered firstly through qualitative exploration of the formation of trustful relationships in economically competitive scenarios. Study of a single social network of plastic-bag sellers in Mwanza, Tanzania, reveals the importance of early anchors of trust as zones of reputation-indication. The comparative experiences of local market-sellers in Kisumu, Kenya, and Mwanza, Tanzania, support understanding higher levels of trust to pervade in Tanzania than in Kenya, and evaluate the influence of ethnic homogeneity for community solidarity. Interviews with business owners of Nairobi, Kenya, and Dar es Salaam, Tanzania, proceed to offer insights on alternative, normative dimensions that may help explain different levels of trust found amongst citizens. To measure the quantitative extent of trust and particular factors influential for its formation, “trust games” were deployed in Nairobi and Dar es Salaam. The experiments were engineered to test areas of common knowledge, specifically ethnicity and the “social virtue” of integrity. Engaging with common knowledge variables in this way offered for analysis areas of mutual understanding between citizens. Alongside confirming higher levels of trust in Tanzania than in Kenya, the games revealed how common knowledge of ethnicity and integrity bore influential effects on levels of trust that were country-specific. Whilst common knowledge of ethnicity tended to have a negative impact on levels of cooperation in Tanzania as compared to Kenya, the effect was the opposite for the social virtue of integrity. The thesis’ central argument is that congruence between citizens on what marks out a trustworthy person is a precondition for relationships of trust to emerge; some symmetry in the moral discourse surrounding agency, character and reputation is thus critical for bringing about the economic and political benefits associated with social capital.

This thesis consists of four separate chapters which address different aspects of inequality and income determination. The first three chapters are country-level studies which examine (1) how incomes are shaped by spatial price differences, (2) the factor income composition, and (3) enterprise size. The final chapter analyses how income inequality changed at the global level. The first chapter investigates the implications of regional price differences for earnings differentials and inequality in Germany. I combine a district-level price index with administrative earnings data from social security records. Prices have a strong equalising effect on district average wages in West Germany, but a weaker effect in East Germany and at the national level. The change in overall inequality as a result of regional price differences is small (although significant in many cases), because inequality is mostly explained by differences within rather than between districts. The second chapter is motivated by the rapid increase in top income shares in the United States since the 1980s. Using data derived from tax filings, I show that this pattern is very similar after controlling for changes in tax unit size. Over the same period as top income shares increased, the composition of these incomes changed dramatically, with the labour share rising. Using a non-parametric copula framework, I show that incomes from labour and capital have become more closely associated at the top. This association is asymmetric such that top wage earners are more likely to also receive high capital incomes, compared with top capital income recipients receiving high wages. In the third chapter, I investigate the positive cross-sectional relationship between enterprise size and earnings using panel data from Ghana. I find evidence for a significant firm size effect in matched firm-worker data and a labour force panel, even after controlling for individual fixed effects. The size effect in self-employment is stronger in the cross-section, but it is driven by individual time-invariant characteristics. The final chapter studies the global interpersonal income distribution using a newly constructed and improved database of national household surveys between 1988 and 2008. The chapter finds that the global Gini remains high and approximately unchanged at around 0.7. However, this hides a substantial change in the global distribution from a twin-peaked distribution in 1988 into a single-peaked one now. Furthermore, the regional composition of the global distribution changed, as China graduated from the bottom ranks. As a result of the growth in Asia, the poorest quantiles of the global distribution are now largely from Sub-Saharan Africa. By exploiting the panel dimension of the dataset, the analysis shows which decile-groups within countries have benefitted most over this 20-year period. In addition, the chapter presents a preliminary assessment of how estimates of global inequality are affected by the likely underreporting of top incomes in surveys.

Non-economic factors like culture and politics, as well as the socio-economic background, matter significantly in directing economic development endeavours towards social wellbeing. Therefore, the current narrow definition of economic development must be extended to include overall wellbeing. As one of the primary forms of physical capital constituting a regional economy, transport investments have played a significant role in development plans. Given that accessibility to social infrastructure is a basic need, certain levels of infrastructure are essential. How these investments have an impact on different groups of individuals has kept many scholars busy for a long time. However, the economic spillover effects of these investments into female labour markets have remained largely unexplored. Situating the implications of development initiatives, including transport investments, for female labour markets in social and cultural contexts requires an integrated view of the regional economy. Although economic geography and existing development theories provide extensive conceptual models to elucidate the links between transport, labour markets and culture, the methodological implications are obscure; hence, the empirical evidence remains weak. This thesis explores the economic and non-economic dynamics of regional economies to clarify the links between transport infrastructure, labour markets, and social and cultural conditions. In particular, the association between female labour forces and development efforts, in the form of transport infrastructure development, is conceptually and empirically examined. This thesis conducts a case study on Turkey. With the extensive infrastructure investment that has been made since 2002 and the extremely low rates of female labour force participation (around 25%), compared to EU-15 and OECD averages of around 65%, Turkey serves as an illuminating case. Theoretically, the study shows that the focus of transport economics on the economic growth effect of investments is not consistent with current efforts to extend economic development objectives: transport research requires a broader view to assess its development implications. The study demonstrates how the interactions between the economic, physical, political, cultural and socio-economic attributes of regions significantly affect how individuals benefit from the investments. The overarching policy implications of the study are useful for regional development policy with a gender focus: complementary policy interventions in human capital development and the consideration of social and cultural attitudes should strengthen the positive impacts of physical investments on female labour markets.

The quality of governance and institutions is increasingly seen as a fundamental factor in shaping the development prospects of poor countries. As a consequence, donor agencies have increasingly allocated resources to providing technical assistance for improving governance standards in such countries, with mixed results. This thesis investigates the domestic and external factors affecting the outcomes of reforms aimed at improving the quality of government budget institutions across a sample of 16 aid-dependent countries. It provides a new definition of the quality of budget institutions, and develops an analytical framework that identifies the key factors at play in the political economy of budget reforms. The analysis starts with a medium-N ‘pattern finding’ approach, based on a new dataset tracking changes in the quality of budget institutions over the period 2001 to 2007. This is followed by a small-N ‘process tracing’ approach, with in-depth case studies of Mozambique and Burkina Faso (with additional evidence from Tanzania), looking at both overall reform trajectories and four specific budget reform areas. The results show that among domestic factors, economic and political stability are preconditions for successful budget reforms. A minimum degree of government leadership and commitment to reforms is also a very important factor shaping budget reform outcomes, alongside the centralisation of budget institutions. Surprisingly, among external factors, the level of technical assistance and the use of so-called programme aid modalities were less important than the overall fragmentation of aid flows and the ways in which technical assistance is delivered in influencing budget reform outcomes. Donors’ hopes of ‘buying’ better budget governance, therefore, are more likely to be enhanced not by additional resources, but by better behaviour. Moreover, such strategy is likely to work only in countries with enough capacity and interest in reforms.

How can political science account for the decision of African states to strengthen their ties with China, often at the expense of other alliances and often in the face of economic risks? This thesis explores this question in the context of relations between Ethiopia and China, especially in the context of investments made by Chinese sovereign wealth funds in the Ethiopian economy. To begin to answer this question this thesis recasts the China-Africa debate to focus on African, i.e. Ethiopian, agency. The focus is on how Ethiopia's political leaders make foreign policy decisions and on the factors that shape their preferences. This focus reveals the influence of cognitive variables on their foreign policy decisions; the influence of their guiding ideology, 'revolutionary democracy,' is especially key. An analysis of Ethiopia's formal institutions demonstrates they are inadequate to explain the policy choices of Ethiopian leaders; they have been designed to reflect the concepts of revolutionary democracy. Using the language of prospect theory, a descriptive theory of decision-making under risk, this thesis contends that Ethiopian leaders select foreign policy options by weighing their possible outcomes as gains or losses relative to revolutionary democracy as their reference frame. Ethiopian leaders sanctioned China's finance of the Ethiopian Telecommunications Corporation despite the monopoly it gave to China and its impact on Ethiopia's debt. They formed a front company between Ethiopia and China's military industrial complexes despite its negative effects on economic development. They opened Ethiopia’s regions to Chinese capital although capital flows only to state-owned enterprises. Yet in each case, ideological objectives were advanced. This examination demonstrates how non-structural factors play a critical role in a bureaucratized state. Theoretical frameworks that account for these factors, like prospect theory, are therefore valuable to more robust understandings of Ethiopia, and Africa's, deepening relations with China.

Morocco is oftentimes praised by academics, development workers, and women’s rights activists as a trailblazer for the empowerment of women in the Middle East and North African region. Its reforms in the realm of family legislation and progress made in human development place the country at the helm of liberalising Arab Muslim-majority societies, even more so after the Arab Spring and Morocco’s peaceful transition to a ‘new’ constitutional order. However, a closer look at women’s rights discourses, legal reforms, its texts and implementation, and the public attitudes towards the enhancement of women’s rights reveals a less empowering situation. The purported goals of the Family Code, as the extolled document showcasing Morocco’s attempt at ameliorating (married) women’s rights, of ‘doing justice to women’ while ‘preserving men’s dignity’ mask the reformed law’s reconsolidation of patriarchal family relations. Many legal grey areas within this particular law, as well as clashing principles emanating from other laws such as the Penal Code, allow judges and the ʿaduls (religious notaries) to exercise discretion and apply the law as they see fit and, to a large extent, as it conforms to their and the community’s vision of the ideal moral order. Moreover, because ‘doing justice to women’ affects men’s and family’s honour, the project of the enhancement of women’s rights has had as a result retraditionalisation of family relations and hierarchical gender structures. Nowhere is this more poignant than in the status of educated single adult girls from provincial areas. They may be poster girls for the development community, but they are pitied by their own communities because they fail to become complete women––married (non-employed) mothers. The story of Morocco’s professed progress is a story of empowering its citizens, but one which does so on paper only. It is also a story which hides the salient details of poorly written reformed laws, obstructed access to justice, continuing widespread misogyny, material poverty and social marginalisation, and cohesive socio-economic programmes, which are rarely followed through.

This thesis consists of a short introduction and three self-contained analytical chapters. Chapter 1 focuses on the question of learning gaps and divergence in achievement across countries. I use unique child-level panel data from Ethiopia, India, Peru and Vietnam to ask at what ages do gaps between different populations emerge, how they increase or decline over time, and what the proximate determinants of this divergence are. I document that learning gaps between the four countries are already evident at the age of 5 years and grow throughout the age trajectory of children, preserving country ranks from 5 to 15 years of age. At primary school age, the divergence between Vietnam and the other countries is largely accounted for by substantially greater learning gains per year of schooling. Chapter 2 focuses on learning differences between private and government school students in India. I present the first value-added models of learning production in private and government schools in this context, using panel data from Andhra Pradesh. I examine the heterogeneity in private school value-added across different subjects, urban and rural areas, medium of instruction, and across age groups. Further, I also estimate private school effects on children's self-efficacy and agency. I find modest or insignificant causal effects of attending private schools in most test domains other than English and on children's academic self-concept and agency. Results on comparable test domains and age groups correspond closely with, and further extend, estimates from a parallel experimental evaluation. Chapter 3 uses panel data from the state of Andhra Pradesh in India to estimate the impact of the introduction of a national midday meal program on anthropometric z-scores of primary school students, and investigates whether the program ameliorated the deterioration of health in young children caused by a severe drought. Correcting for self-selection into the program using a non-linearity in how age affects the probability of enrollment, we find that the program acted as a safety net for children, providing large and significant health gains for children whose families suffered from drought.

Garment sector trade unions have proved largely powerless to combat hypermobile transnational capital’s systematic extraction of surplus value from the newly industrialized Global South. Optimized conditions for accumulation coupled with the 2005 phase-out of the Multi-Fibre Agreement (MFA) have meant a radical geographic reconfiguration of the globalised garment industry heavily in favour of capital over labour. The thesis approaches the global garment sector from multiple vantage points across the world with the goal of uncovering the obstacles to workers' organisation, examine workers' strategies of resistance, and analyse the changing composition of labour and capital within the clothing commodity chain. The thesis highlights five distinct but interconnected case studies including a transnational workers campaign from a garment factory in Honduras; a history and present-day feasibility of establishing a transnational collective bargaining from El Salvador to Turkey to Cambodia; the prospects for a countermovement in the organizing strategies at the bottom of the clothing commodity and supply chain in Bangalore; the growth of a 'full package' denim manufacturer in changing the relationship between 'buyers' and 'suppliers' on the outskirts of Bangalore; and finally a continuation of this analysis the case of a strike at a monopoly footwear supplier in China. The central research question is: How do workers build power and establish workers' rights in the globally hypermobile garment sector? Ultimately, what is demonstrated within this thesis is that the actions of garment workers shaped and circumscribed the actions of capital in the sector, and as capital transformed new landscapes for accumulation new vistas for opposition begin to emerge.

In meiner Dissertation untersuche ich, inwiefern sich der Zugang zu individuellen Absicherungsmöglichkeiten auf die informellen Unterstützungsnetzwerke zwischen Haushalten auswirkt. Diese Forschungsfrage ist vor dem Hintergrund der rasanten wirtschaftlichen Entwicklung vieler vormalig einkommensschwacher Länder von besonderer Relevanz. Sowohl um Voraussagen machen zu können, wie diese Entwicklung die soziale Struktur verändert als auch um Wohlfahrtseffekte spezifizieren zu können, ist es wichtig die Beziehung zwischen dem Zugang zu individuellen Absicherungsmöglichkeiten und der Nutzung informeller Unterstützungsnetzwerke zu verstehen. In dieser Arbeit erforsche ich diese Beziehung unter drei Gesichtspunkten. In der ersten Studie, untersuche ich die Struktur des Unterstützungsnetzwerks eines Fischerdorfes in den Philippinen. Ausgehend von einem theoretischen Netzwerkmodell, analysiere ich die Faktoren, die dazu führen, dass zwei Haushalte sich im Falle eines Schocks auf den jeweils anderen verlassen, wobei der Fokus auf dem Zugang zu alternativen Absicherungsmöglichkeiten liegt. In der zweiten Studie untersuche ich gezielt, inwieweit die Bereitschaft jemanden zu unterstützen davon beeinflusst wird, ob dieser Zugang zu individuellen Absicherungsmöglichkeiten hat. Dies wird mit Hilfe eines lab-in-the-field-Experimentes, das im ländlichen Kambodscha durchgeführt wurde, analysiert. In der dritten Studie verknüpfe ich die Unterstützungs-Entscheidungen aus dem Experiment mit dem tatsächlichen Unterstützungsnetzwerk der Experimentteilnehmer und untersuche, ob die Struktur der persönlichen sozialen Netzwerke das Verhalten im Experiment erklären kann. Zusammengefasst zeigen die drei Studien, dass mit dem Zugang zu individuellen Absicherungsmöglichkeiten Anreize abnehmen können, in informelle Unterstützungsnetzwerke zu investieren oder altruistisch Unterstützung zu gewähren. Dies hat direkte Auswirkungen auf die lokale Sozialstruktur. / In this thesis, I investigate how access to resources can affect the formation of informal support arrangements between households. This question is of particular relevance in the light of the rapid economic development that many former low-income countries recently experienced, which goes hand in hand with increasing possibilities for the population to cope with hardships individually. An understanding of the relationship between informal support and access to alternative risk management resources is crucial in order to make predictions about how this development can affect the social structure, and to specify welfare effects. In the thesis, I investigate this relationship from three different angles. First, I study the structure of mutual support arrangements in a fishing village on the Philippines (Chapter 2). Based on a model of strategic link formation I investigate which factors explain that two households engage in a mutual support arrangement with a focus on the role of households' alternative resources. In a second study, I investigate how the willingness to provide support can be affected by the availability of alternative resources, in particular individual insurance (Chapter 3). This is analyzed based on a lab-in-the-field experiment conducted in Cambodia. Different to the first study, the second study focuses on social preference motivated support. The last study conceptually links the first two studies. I relate the subjects' support decisions observed in the experiment back to the subjects' engagement in mutual support arrangements in real life and thus put the behavior in context to the social structure (Chapter 4). In summary, the studies show that with access to individual risk management options, the incentives to engage in mutual support arrangements as well as social preference motivated support can reduce, which has a direct impact on the local social structure.

L’Amérique Latine et les Caraïbes sont l’une des régions plus violentes du monde. Le niveau de violence est particulièrement élevé dans les plus grandes villes de cette région (UNODC, 2013). La compréhension des déterminants de la criminalité urbaine est donc un défi majeur pour ces pays. Cette thèse a pour but d’explorer le rôle de trois déterminants de la criminalité en Équateur: les inégalités économiques, la taille des villes et le role des émotions liés aux évènements sportifs tels que les matchs de football.Avant d’entreprendre cette analyse empirique, nous proposons une revue des littératures théorique et empirique sur les déterminants de la criminalité urbaine. Une conclusion importante est que les incitations économiques conduisant à des activités criminelles sont influencées par les schémas de localisation des criminels et des victimes. Partant de ce constat, la thèse propose d’entreprendre trois analyses empiriques à différentes échelles géographiques. Tout d’abord, nous explorons l'effet des inégalités de revenus sur le risque de victimisation en Équateur, en utilisant des données individuelles issues de l’enquête nationale de victimisation. Le principal résultat est que, contrairement aux prédictions, le coefficient de Gini a un effet négatif sur la probabilité d’être victime de vols. Ce résultat pourrait être lié à une ségrégation résidentielle élevée ou à un contrôle social élevé contre la criminalité. De plus, les estimations révèlent une relation croissante et concave entre le niveau de revenu des victimes et la probabilité de victimisation concernant les vols de véhicule, qui augmente avec un revenu mensuel jusqu’à 5,100 dollars, et puis diminue.Ensuite, nous testons l'existence d'une prime de criminalité urbaine (criminalité plus élevée dans les zones urbaines) en Équateur, à l’échelle des paroisses. Le principal résultat indique que la taille des villes a une influence non-monotone sur le taux d’homicide. La probabilité de constater un ou plusieurs homicides est plus élevée dans les paroisses les plus peuplées. Toutefois, le taux d’homicide diminue avec le niveau de population dans les paroisses où se produisent des homicides. Concernant les crimes contre la propriété, les résultats confirment l’influence positive de la population sur le nombre de crime par habitant. Enfin, nous estimons l’impact des matchs de football sur le nombre d'homicides et de crimes contre la propriété dans 16 cantons d’Équateur, à l’échelle intra-urbaine. L’objectif est d’étudier l’influence des matchs de football sur les profils temporels et géographiques des crimes, ainsi que l’impact des émotions (frustration et euphorie) liées aux résultats des matchs sur la criminalité. Les résultats indiquent que le nombre d'homicides augmente 0.18% avant le match, tandis que le nombre de crimes contre la propriété augmente 12% après le match, à proximité du stade. Les matchs de football entraînent également une diffusion spatiale de la criminalité dans des quartiers éloignés des stades. Les jours de matchs, les crimes contre la propriété diminuent 0.88% avant le match et les homicides diminuent 0.05% pendant le match, dans les quartiers éloignés des stades. Après le match, les homicides et les crimes contre la propriété augmentent de manière significative dans les quartiers éloignés des stades. Enfin, l'effet des émotions sur les homicides et les crimes contre la propriété n'est pas significatif au niveau agrégé, alors qu’il est significatif en ce qui concerne les homicides commis dans la capitale de l'Équateur, Quito. / Latin America and the Caribbean (LAC) is one of the most violent regions in the world. Importantly, higher levels of violence prevail in most urbanized LAC cities (UNODC, 2013). Understanding the determinants of urban crime is therefore a major challenge for those countries. The purpose of this dissertation is to explore the role of three crime determinants in Ecuador: economic inequalities, city size, and the emotions caused by soccer events.Before conducting this empirical analysis, we first review the theoretical and empirical literature on urban crime determinants. An important conclusion is that economic incentives that lead individuals to commit crime are influenced by the location pattern of criminals and victims. Building on these considerations, we perform three empirical analyses at different geographic levels.First, we explore the effect of income inequality on victimization in Ecuador, using data at the individual level thanks to the Ecuadorian Victimization survey. The main result is that, contrary to the predictions, the Gini coefficient has a negative effect on victimization by robbery. This result could be related to a high residential segregation or a high social control against crime. In addition, we provide evidence for an increasing and concave relationship between the income level of victims and the probability of victimization by vehicle theft, which first increases with a monthly household income up to $5,100, and then falls.Second, we test the existence of an urban crime premium (higher crime in urban areas) in Ecuador, at the parish level. Our main result is that population exerts a non-linear influence on the homicide rate. The probability that a homicide happens is higher in larger parishes. However, the homicide rate decreases with population in parishes with positive homicides. By contrast, the results regarding property crimes confirm that the level of population increases the number of pecuniary crimes per inhabitant.Third, we explore the effect of soccer matches on the number of homicides and property crimes in 16 cantons of Ecuador, at the intra-city level. The aim is to test whether soccer matches alter the temporal and spatial patterns of crime, and the role of emotions (frustration and euphoria) resulting from soccer matches on crime. Results reveal that the number of homicides increases by 0.18% before the match whereas the number of property crimes increases by 12% after the match, near the stadium. Soccer matches also cause spatial spillovers of crime in locations distant from stadiums. On game days, the number of property crimes falls by 0.88% before the match and the number of homicides falls by 0.05% during the match, in these distant locations. After the game, the homicides and property crimes significantly increase in locations distant from stadiums. Finally, the effect of emotions on homicides or property crimes is not significant at the aggregate level but it is significant regarding homicides that occur in the capital of Ecuador, Quito.