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Social Capital as a Factor of Economic Growth in the Regions of Russia
[Социальный Капитал Как Фактор Экономического Роста Российских Регионов]

Author

Listed:
  • Kosarev, Vladimir (Косарев, Владимир)

    (Russian Presidential Academy of National Economy and Public Administration; Gaidar Institute for Economic)

  • Pavlov, Pavel (Павлов, Павел)

    (Russian Presidential Academy of National Economy and Public Administration)

  • Kaukin, Andrey (Каукин, Андрей)

    (Gaidar Institute for Economic)

Abstract

This paper examines the influence of sociocultural factors of economic growth on economic development of the Russian regions. The article analyses the influence of various forms of social capital according to James Coleman (norms of trust between individuals, horizontal ties, social norms and values) on economic growth rates of the Russian regions. The paper uses an augmented neoclassical model of economic growth to test the hypotheses about the impact of the initial social capital distribution on the subsequent GRP growth rates in 2007–2016. Particular attention is paid to the selection of relevant tools for measuring the level of social capital of the Russian regions. The empirical specifications of the proposed theoretical model of regional economic growth were evaluated using the two-stage least squares regression (2SLS); the robustness check was carried out using the system generalized method of moments (system GMM). The results of econometric analysis show that the initial spatial distribution of generalized trust does not have a statistically significant effect on economic development. At the same time, the activity of lobbying groups (Olson groups) reduces the rate of economic growth in the regions of the Russian Federation. Increasing the level of civic cooperation (the willingness of citizens to unite to solve their own or social problems in the region) is associated with higher rates of economic development. For the selected study period, the economic significance of sociocultural factors is marginal relative to the significance of the fundamental neoclassical growth factors. Unlocking the potential of sociocultural factors of economic growth may suggest activating the processes of structural transformation of the Russian economy by increasing the economic importance of the private sector and SME segment.

Suggested Citation

  • Kosarev, Vladimir (Косарев, Владимир) & Pavlov, Pavel (Павлов, Павел) & Kaukin, Andrey (Каукин, Андрей), 2019. "Social Capital as a Factor of Economic Growth in the Regions of Russia [Социальный Капитал Как Фактор Экономического Роста Российских Регионов]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 124-149, October.
    • Handle: RePEc:rnp:ecopol:ep1938
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    References listed on IDEAS

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    1. Демидова Ольга Анатольевна & Иванов Денис Сергеевич, 2016. "Модели Экономического Роста С Неоднородными Пространственными Эффектами (На Примере Российских Регионов)," Higher School of Economics Economic Journal Экономический журнал Высшей школы экономики, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 20(1), pages 52-75.
    2. Forte, Anabel & Peiró-Palomino, Jesús & Tortosa-Ausina, Emili, 2015. "Does social capital matter for European regional growth?," European Economic Review, Elsevier, vol. 77(C), pages 47-64.
    3. Beugelsdijk,Sjoerd & Maseland,Robbert, 2014. "Culture in Economics," Cambridge Books, Cambridge University Press, number 9781107684614, July.
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    6. Isabel Neira & Emilia Vázquez & Marta Portela, 2009. "An Empirical Analysis of Social Capital and Economic Growth in Europe (1980–2000)," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 92(1), pages 111-129, May.
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    1. N. A. Kravchenko & A. I. Ivanova, 2021. "Spread of the COVID-19 In Russia: Regional Peculiarities," Regional Research of Russia, Springer, vol. 11(4), pages 428-434, October.
    2. S. P. Zemtsov & V. L. Baburin, 2020. "COVID-19: Spatial Dynamics and Diffusion Factors across Russian Regions," Regional Research of Russia, Springer, vol. 10(3), pages 273-290, July.

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    More about this item

    Keywords

    economic growth; regions of Russia; social capital;
    All these keywords.

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical

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