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Measurement of Social Capital and Growth: an Economic Methodology

Author

Listed:
  • Pérez, Francisco
  • Fernandez de Guevara, Juan
  • Serrano, Lorenzo
  • Montesinos, Vicente

Abstract

This paper develops a measure of social capital based on economic relationships and analyzes its effects on growth. Investment in social capital is modeled by using the conceptual framework for measuring physical capital services. The measure of social capital depends on expectations of income, its investment cost, inequality in society, the density of trust networks, the size of the social network and the rate of depreciation of social capital. With this methodology a database is constructed for 23 OECD countries covering the period 1970-2001 and the positive effect of social capital on economic growth is tested.

Suggested Citation

  • Pérez, Francisco & Fernandez de Guevara, Juan & Serrano, Lorenzo & Montesinos, Vicente, 2006. "Measurement of Social Capital and Growth: an Economic Methodology," MPRA Paper 16006, University Library of Munich, Germany, revised 2006.
    • Handle: RePEc:pra:mprapa:16006
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    References listed on IDEAS

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    Cited by:

    1. Xin, Guangyi, 2017. "Trust and Economic Performance: A Panel Study," MPRA Paper 80815, University Library of Munich, Germany.
    2. 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.
    3. Arribas, Iván & Pérez, Francisco & Tortosa-Ausina, Emili, 2006. "Measuring International Economic Integration: Theory and Evidence of Globalization," MPRA Paper 16010, University Library of Munich, Germany, revised 2006.
    4. José Manuel Pastor & Emili Tortosa‐Ausina, 2008. "Social Capital And Bank Performance: An International Comparison For Oecd Countries," Manchester School, University of Manchester, vol. 76(2), pages 223-265, March.

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    Keywords

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    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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