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Social and institutional factors as determinants of economic growth: Evidence from the United States counties

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Author Info
Anil Rupasingha (Department of Agricultural Economics and Rural Sociology, The Pennsylvania State University, 7E Armsby Bldg., University Park, PA 16802, USA)
Stephan J. Goetz (Department of Agricultural Economics and Rural Sociology, The Pennsylvania State University, 7E Armsby Bldg., University Park, PA 16802, USA)
David Freshwater () (Department of Agricultural Economics, University of Kentucky, 407 Charles E. Barnhart Building 0276, Lexington, KY 40502, USA)

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Abstract

In the search for explanations of persistent differences in economic growth rates, the conditional convergence growth model has introduced the possibility of incorporating a wide set of factors as determinants of growth. Controlling for spatial dependence, we assess the contribution of differences in social and institutional variables on growth rates of per capita income for counties in the United States. The empirical results indicate that, ceteris paribus, social and institutio variables explain some of the differences in convergence rates among counties. In particular, (i) ethnic diversity is associated with faster rates of economic growth; (ii) higher levels of income inequality are associated with lower rates; and (iii) higher levels of social capital have a positive effect on economic growth rates.

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Publisher Info
Article provided by Springer in its journal Papers in Regional Science.

Volume (Year): 81 (2002)
Issue (Month): 2 ()
Pages: 139-155
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Handle: RePEc:spr:presci:v:81:y:2002:i:2:p:139-155

Note: Received: 14 August 2000
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Related research
Keywords: Economic growth; ethnic diversity; income inequality; social capital; U.S. counties;

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Find related papers by JEL classification:
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

Cited by:
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  1. Paudel, Krishna P. & Zapata, Hector O. & Schafer, Mark J. & Marzooghi, Hassan, 2005. "Does Social Capital Have a Role in Environmental Kuznets Curve? Spatial Panel Regression Approach," 2005 Annual meeting, July 24-27, Providence, RI 19457, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  2. Artelaris, Panagiotis & Arvanitidis, Paschalis & Petrakos, George, 2006. "Theoretical and Methodological Study on Dynamic Growth Regions and Factors Explaining their Growth Performance," Papers DYNREG02, Economic and Social Research Institute (ESRI). [Downloadable!]
  3. Belal Fallah & Mark Partridge, 2007. "The elusive inequality-economic growth relationship: are there differences between cities and the countryside?," The Annals of Regional Science, Springer, vol. 41(2), pages 375-400, June. [Downloadable!] (restricted)
  4. Luisa Decuir-Viruez, 2003. "Institutional Factors in the Economic growth of Mexico," ERSA conference papers ersa03p264, European Regional Science Association. [Downloadable!]
  5. Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2005. "A Meta-Analysis of Beta-Convergence: The Legendary Two-Percent," Tinbergen Institute Discussion Papers 05-001/3, Tinbergen Institute. [Downloadable!]
  6. Helje Kaldaru & Eve Parts, 2008. "Social and institutional factors of economic development: evidence from Europe," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 8(1), pages 29-51, October. [Downloadable!]
  7. Krishna Paudel & Mark Schafer, 2009. "The Environmental Kuznets Curve Under a New Framework: The Role of Social Capital in Water Pollution," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 42(2), pages 265-278, February. [Downloadable!] (restricted)
  8. Ismail H. GENC & Anil RUPASINGHA, 2009. "Time-series Tests of Stochastic Earnings Convergence across US Nonmetropolitan Counties, 1969-2004," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 9(2). [Downloadable!] (restricted)
  9. Shideler, David W. & Kraybill, David S., 2003. "Social Networks, Social Capital And Community Economic Growth," 2003 Annual meeting, July 27-30, Montreal, Canada 22174, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  10. Heather Boushey & Christian E. Weller, 2006. "Inequality and Household Economic Hardship in the United States of America," Working Papers 18, United Nations, Department of Economics and Social Affairs. [Downloadable!]
  11. Helje Kaldaru & Eve Parts, 2005. "The Effect Of Macro-Level Social Capital On Sustainable Economic Development," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 42, Faculty of Economics and Business Administration, University of Tartu (Estonia). [Downloadable!]
  12. Maria Luisa Decuir-Viruez, 2006. "Institutions and Regional Economic Growth: An Assessment of Mexican Regional Strategies 1970-2000," ERSA conference papers ersa06p344, European Regional Science Association. [Downloadable!]
  13. Bartolini, Stefano & Bonatti, Luigi, 2007. "Endogenous growth, decline in social capital and expansion of market activities," MPRA Paper 3341, University Library of Munich, Germany. [Downloadable!]
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