A plethora of work has been done on the effectiveness of foreign aid. However, virtually none of the previous studies has investigated the impact of aid on social cohesion. Yet, in order to promote the achievement of the targets in SDG 16, donors and global partners of developing countries have...

In many low-income transition countries, where formal institutions such as courts do not function effectively, informal institutions are often used by firms to minimize transaction risks. We examine the role of informal institutions, in the forms of relational contracting and social networks, in...