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Does Social Capital Have an Effect on Industry Production in G7 Countries? Causality Analysis

Author

Listed:
  • Oktay KIZILKAYA

    (Ahi Evran University, Faculty of Economics and Administrative Sciences, Department of Economics, K r ehir, Turkey.)

  • Murat ET NKAYA

    (Gazi University, School of Banking and Insurance, Department of Banking, Ankara, Turkey.)

  • Emrah SOFUO LU

    (Ahi Evran University, Faculty of Economics and Administrative Sciences, Department of Economics, K r ehir, Turkey.)

Abstract

The relationship between social capital and economic growth has become an attractive research area in the literature recently. In this context, this paper examines the relationship between social capital indicators and industry production in the period of 2006-2014 with monthly data for the G7 countries. For empirical analysis, panel causality analysis method developed by Dumitrescu & Hurlin (2012) was used. Results indicate that there is a bidirectional relationship between social capital indicators and industry production. These findings support feedback hypothesis in the context of social capital and economic growth in the G7 countries.

Suggested Citation

  • Oktay KIZILKAYA & Murat ET NKAYA & Emrah SOFUO LU, 2017. "Does Social Capital Have an Effect on Industry Production in G7 Countries? Causality Analysis," Journal of Economics Library, EconSciences Journals, vol. 4(1), pages 54-63, March.
    • Handle: RePEc:cvv:journ5:v:4:y:2017:i:1:p:54-63
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    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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