Confidence in basic economic exchange is an important building block for economies. This confidence in economic exchange is often affected by state institutions that possess the authority to enforce contracts which ensure agreements are not broken. In much of the world, however, weak state institutions limit the confidence of citizens and businesses that contracts and deals will be enforced fairly. As a result, economic exchange is stifled and inefficiencies persist. Understanding how contracts and economic exchange are affected, particularly in contexts where only a subset of individuals enjoy privileged access to state institutions, is essential for development yet not well understood. This project will assess how varying levels political connectivity influences economic exchange. The findings from this study will provide valuable insight as to how different strategies can spur economic development in areas where the rule of law is not evenly distributed among citizens.
