IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Social Capital, Corruption and Economic Growth: Eastern and Western Europe

We hypothesize, that power centralisation in a political system leads to more corruption due to the monopoly power status of bureaucrats. Corruption again would then lead to a lower level of social capital, here measured as trust, and slow down economic growth even further. Indeed, when comparing the tables and weighted averages for corruption and trust, highly corrupt countries such as those in Eastern Europe, also tend have the lowest level of trust. In general, low levels of trust (measured as general trust and civic participation) are also related to smaller Gross Domestic Product per capita levels. A similar pattern is observed within Western Europe. In the European Union, ‘Northern EU’ member states generally hold less corruption, more trust and higher Gross Domestic Product per capita compared to ‘Southern EU’ member states. In perspective, the fate of Eastern Europe could then be a lesson for how to decentralise power and accumulate trust in the future thus establishing better economic policies and the general business climate for entrepreneurship.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.hba.dk/fsk/pdfs/0003156.pdf
Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify (Helle Vinbaek Stenholt)


Download Restriction: no

Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 03-21.

as
in new window

Length: 31 pages
Date of creation: 28 Jan 2003
Date of revision:
Handle: RePEc:hhs:aareco:2003_021
Contact details of provider: Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx

More information through EDIRC

References listed on IDEAS
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.:

as in new window
  1. Fisman, Raymond & Gatti, Roberta, 2000. "Decentralization and corruption - evidence across countries," Policy Research Working Paper Series 2290, The World Bank.
  2. Paldam, Martin, 2000. " Social Capital: One or Many? Definition and Measurement," Journal of Economic Surveys, Wiley Blackwell, vol. 14(5), pages 629-53, December.
  3. Svendsen, G.T., 1998. "Social Capital, Economic Growth and Transition Economies," Papers 98-2, Aarhus School of Business - Department of Economics.
  4. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
  5. Paldam, M. & Svendsen, G.T., 2000. "Missing Social Capital and the Transition in Eastern Europe," Papers 00-5, Aarhus School of Business - Department of Economics.
  6. Paldam, Martin & Svendsen, Gert Tinggaard, 2000. "An essay on social capital: looking for the fire behind the smoke," European Journal of Political Economy, Elsevier, vol. 16(2), pages 339-366, June.
  7. Hans Aage, 1997. "Institutions and Performance in Transition Economies," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 24, pages 125-144.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:hhs:aareco:2003_021. 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: (Helle Vinbaek Stenholt)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.