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Social Capital and Human Capital in the Colonies: A Study of Cocoa Farmers in Western Nigeria

ABSTRACT I examine the relationship between social and human capital in colonial Western Nigeria. Using data on expenditure of cocoa farmers in 1952, I show that farmers in towns with higher social spending individually spend more on education. The relationship holds after controlling for various characteristics of the farmers and the towns. Thus I highlight the importance of social capital in generating human capital. I also show that this relationship is not limited to contemporary African development but was already present during the colonial era.