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A note on social capital, space and growth in Europe

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  • Luciano Lavecchia

    (Bank of Italy)

Abstract

This note replicates the analysis of Tabellini (2010) on the relationship between social capital and regional economic growth in Europe, extending that work and the underlying dataset by focusing on the spatial dimension of social capital and introducing a definition of contiguity among European regions. We find a sizable and robust contribution of social capital to regional growth. We also estimate a Spatial autoregressive model with autoregressive disturbances (SARAR) and a Spatial Durbin Error model (SDEM). The results confirm the positive role of social capital, highlighting the importance of spatial spillovers, which warrants further discussion.

Suggested Citation

  • Luciano Lavecchia, 2015. "A note on social capital, space and growth in Europe," Temi di discussione (Economic working papers) 1017, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:wptemi:td_1017_15
    as

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    References listed on IDEAS

    as
    1. Roel Rutten & Hans Westlund & Frans Boekema, 2010. "The Spatial Dimension of Social Capital," European Planning Studies, Taylor & Francis Journals, vol. 18(6), pages 863-871, June.
    2. Giovanni Millo & Giacomo Pasini, 2010. "Does Social Capital Reduce Moral Hazard? A Network Model for Non-Life Insurance Demand," Fiscal Studies, Institute for Fiscal Studies, vol. 31(3), pages 341-372, September.
    3. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    4. Guido Tabellini, 2008. "The Scope of Cooperation: Values and Incentives," The Quarterly Journal of Economics, Oxford University Press, vol. 123(3), pages 905-950.
    5. Laura de Dominicis & Raymond J.G.M. Florax & Henri L.F. de Groot, 2013. "Regional clusters of innovative activity in Europe: are social capital and geographical proximity key determinants?," Applied Economics, Taylor & Francis Journals, vol. 45(17), pages 2325-2335, June.
    6. James P. LeSage, 2014. "What Regional Scientists Need to Know about Spatial Econometrics," The Review of Regional Studies, Southern Regional Science Association, vol. 44(1), pages 13-32, Spring.
    7. İ. Semih Akçomak & Dinand Webbink & Bas Weel, 2016. "Why Did the Netherlands Develop So Early? The Legacy of the Brethren of the Common Life," Economic Journal, Royal Economic Society, vol. 126(593), pages 821-860, June.
    8. Takagi, Daisuke & Ikeda, Ken’ichi & Kawachi, Ichiro, 2012. "Neighborhood social capital and crime victimization: Comparison of spatial regression analysis and hierarchical regression analysis," Social Science & Medicine, Elsevier, vol. 75(10), pages 1895-1902.
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    More about this item

    Keywords

    social capital; space; growth; Europe; sarar; sdem;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913

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