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Formation of Social Capital in Central and Eastern Europe: Understanding the Gap Vis-a-Vis Developed Countries

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  • Fidrmuc, Jan
  • Gërxhani, Klarita

Abstract

Recent Eurobarometer survey data are used to document and explain the stock of social capital in 27 European countries. Social capital in Central and Eastern Europe – measured by civic participation and access to social networks – lags behind that in Western European countries. Using regression analysis of determinants of individual stock of social capital, we find that this gap persists when we account for individual characteristics and endowments of respondents but disappears completely after we control for aggregate measures of economic development and quality of institutions. Informal institutions such as prevalence of corruption appear particularly important.

Suggested Citation

  • Fidrmuc, Jan & Gërxhani, Klarita, 2005. "Formation of Social Capital in Central and Eastern Europe: Understanding the Gap Vis-a-Vis Developed Countries," CEPR Discussion Papers 5068, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:5068
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    1. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1251-1288.
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    Citations

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    Cited by:

    1. Hilde Coffé & Tanja Lippe, 2010. "Citizenship Norms in Eastern Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 96(3), pages 479-496, May.
    2. repec:taf:ceasxx:v:59:y:2007:i:6:p:961-976 is not listed on IDEAS
    3. 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.
    4. Caroline Berchet & Nicolas Sirven, 2012. "Cross-Country Performance in Social Integration of Older Migrants. A European Perspective," Working Papers DT46, IRDES institut for research and information in health economics, revised Mar 2012.
    5. Murray, Catherine, 2008. "Social Capital and Cooperation in Central and Eastern Europe – A Framework for Research on Governance," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 0(Number 1), pages 1-18.
    6. Anneli Kaasa & Eve Parts, 2007. "Individual-Level Determinants Of Social Capital In Europe: Differences Between Country Groups," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 56, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    7. Murray, Catherine, 2005. "Social Capital and Cooperation in Central and Eastern Europe: A Theoretical Perspective," Institutional Change in Agriculture and Natural Resources Discussion Papers 18831, Humboldt University Berlin, Department of Agricultural Economics.
    8. Peter Håkansson & Fredrik Sjöholm, 2007. "Who Do You Trust? Ethnicity and Trust in Bosnia and Herzegovina," Europe-Asia Studies, Taylor & Francis Journals, vol. 59(6), pages 961-976.
    9. Katarina Svitkova, 2006. "Corporate Philanthropy in the Czech and Slovak Republics," CERGE-EI Working Papers wp312, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    10. B. d'Hombres & L. Rocco & M. Suhrcke & M. McKee, 2010. "Does social capital determine health? Evidence from eight transition countries," Health Economics, John Wiley & Sons, Ltd., vol. 19(1), pages 56-74.

    More about this item

    Keywords

    capitalism; institutions; social capital; transition;

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • P37 - Economic Systems - - Socialist Institutions and Their Transitions - - - Legal
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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