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The relationship between social capital and economic growth on a provincial and regional basis

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  • Pilatin Abdulmuttalip

    (1 Department of Finance and Banking, Recep Tayyip Erdogan University, Fener Street 53100, Rize, Türkiye)

  • Hacıimamoğlu Tunahan

    (2 Department of Economics, Recep Tayyip Erdogan University, Fener Street 53100, Rize, Türkiye)

Abstract

The aim of this study is to examine the relationship between the level of GDP per capita and social capital provinces and regions in Türkiye in the period of 2007–2018. The social capital index was used as a comprehensive variable to represent social capital. The relationships between the variables were analysed with the use of the panel Granger causality test. It was determined that there is a unilateral causality from GDP per capita to social capital in sixteen provinces, from social capital to GDP per capita in nine provinces and bilateral causality in 45 provinces. On the other hand, no significant relationship was found in eleven provinces. The results reveal that the level of social capital in terms of GDP per capita in 45 provinces in Türkiye and the level of GDP per capita in terms of social capital is a factor that should be considered. Regional causality results for Türkiye support the provincial causality results. These results provide key insights regarding the nexus between social capital and economic growth for policymakers and researchers.

Suggested Citation

  • Pilatin Abdulmuttalip & Hacıimamoğlu Tunahan, 2023. "The relationship between social capital and economic growth on a provincial and regional basis," Economics and Business Review, Sciendo, vol. 9(3), pages 153-180, October.
    • Handle: RePEc:vrs:ecobur:v:9:y:2023:i:3:p:153-180:n:6
    DOI: 10.18559/ebr.2023.3.799
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    More about this item

    Keywords

    social capital; GDP per capita; economic growth; panel causality analysis;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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