Does Social Cohesion Really Promote Reforms?
This paper investigates whether social cohesion makes economic reforms more likely. First, we investigated whether social cohesion is a coherent concept by using a principal-component factor (PCF) analysis covering 16 indicators used to measure social cohesion in the previous literature for 40 different countries. The results suggested that in fact social cohesion is a multidimensional concept, consisting of no less than five orthogonal components or distinct dimensions, which we labeled social divisions, modern values, traditional nationalism, institutional commitment, and fairness as merit. The dimensions are then examined in relationship with economic reform in a panel regression framework. Results show that most dimensions of social cohesion do not in fact influence reform capacity. However, views of fairness based on merit, in contrast to equality, and to some extent social divisions, are found to have a positive effect on economic reforms. The results go against the previous literature, challenging the prevailing view of social cohesion as being unambiguously beneficial to economic reform.
|Date of creation:||Jul 2013|
|Date of revision:|
|Contact details of provider:|| |
|Order Information:|| Postal: WWWforEurope Project Office Austrian Institute of Economic Research Arsenal Objekt 20 A-1030 Vienna|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Amos Tversky & Daniel Kahneman, 1979.
"Prospect Theory: An Analysis of Decision under Risk,"
Levine's Working Paper Archive
7656, David K. Levine.
- Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-91, March.
- ACKET Sylvain & BORSENBERGER Monique & DICKES Paul & SARRACINO Francesco, 2011. "Measuring and validating social cohesion: a bottom-up approach," LISER Working Paper Series 2011-08, LISER.
- Vai-Lam Mui & Timothy N. Cason, 2004.
"Uncertainty and Resistance to Reform in Laboratory Participation Games,"
Econometric Society 2004 Australasian Meetings
1, Econometric Society.
- Cason, Timothy N. & Mui, Vai-Lam, 2005. "Uncertainty and resistance to reform in laboratory participation games," European Journal of Political Economy, Elsevier, vol. 21(3), pages 708-737, September.
- César Martinelli & Raúl Escorza, 2005.
"When Are Stabilizations Delayed? Alesina-Drazen Revisited,"
122247000000000667, UCLA Department of Economics.
- Martinelli, Cesar & Escorza, Raul, 2007. "When are stabilizations delayed? Alesina-Drazen revisited," European Economic Review, Elsevier, vol. 51(5), pages 1223-1245, July.
- Cesar Martinelli & Raul Escorza, 2004. "When Are Stabilizations Delayed? Alesina-Drazen Revisited," Working Papers 0408, Centro de Investigacion Economica, ITAM.
- Regina Berger-Schmitt, 2002. "Considering Social Cohesion in Quality of Life Assessments: Concept and Measurement," Social Indicators Research- An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 58(1), pages 403-428, June.
- Lauren Heller, 2009. "Social Cohesion and Its Relationship to Endogenous Institutional Formation and Economic Growth," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 25(Fall 2009), pages 81-104.
- Maddala, G S & Wu, Shaowen, 1999. " A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 631-52, Special I.
- James Moody & Douglas R. White, 2000. "Structural Cohesion and Embeddedness: A Hierarchical Conception of Social Groups," Working Papers 00-08-049, Santa Fe Institute.
- Dani Rodrik, 1996. "Understanding Economic Policy Reform," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 9-41, March.
- Li, Baibing & Martin, Elaine B. & Morris, A. Julian, 2002. "On principal component analysis in L1," Computational Statistics & Data Analysis, Elsevier, vol. 40(3), pages 471-474, September.
- Alesina, A. & Drazen, A., 1991.
"Why Are Stabilizations Delayed?,"
6-91, Tel Aviv - the Sackler Institute of Economic Studies.
- William Easterly & Jozef Ritzen & Michael Woolcock, 2006.
"Social Cohesion, Institutions, And Growth,"
Economics and Politics,
Wiley Blackwell, vol. 18(2), pages 103-120, 07.
- Pitlik, Hans & Wirth, Steffen, 2003. "Do crises promote the extent of economic liberalization?: an empirical test," European Journal of Political Economy, Elsevier, vol. 19(3), pages 565-581, September.
- World Bank, 2012. "World Development Report 2013," World Bank Publications, The World Bank, number 11843, February.
- Fabian Valencia & Luc Laeven, 2012. "Systemic Banking Crises Database; An Update," IMF Working Papers 12/163, International Monetary Fund.
- Jan Janmaat, 2011. "Social Cohesion as a Real-life Phenomenon: Assessing the Explanatory Power of the Universalist and Particularist Perspectives," Social Indicators Research- An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 100(1), pages 61-83, January.
- Nauro Campos & Cheng Hsiao & Jeffrey Nugent, 2010. "Crises, What Crises? New Evidence on the Relative Roles of Political and Economic Crises in Begetting Reforms," Journal of Development Studies, Taylor & Francis Journals, vol. 46(10), pages 1670-1691.
- Paul Dickes & Marie Valentova & Monique Borsenberger, 2010. "Construct Validation and Application of a Common Measure of Social Cohesion in 33 European Countries," Social Indicators Research- An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 98(3), pages 451-473, September.
- Choi, In, 2001. "Unit root tests for panel data," Journal of International Money and Finance, Elsevier, vol. 20(2), pages 249-272, April.
- Dayton-Johnson, Jeff, 2003. "Knitted warmth: the simple analytics of social cohesion," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(6), pages 623-645, December.
- Fernandez, Raquel & Rodrik, Dani, 1991. "Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty," American Economic Review, American Economic Association, vol. 81(5), pages 1146-55, December.
When requesting a correction, please mention this item's handle: RePEc:feu:wfewop:y:2013:m:7:d:0:i:33. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.