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Social Exclusion and Economic Growth: An Empirical Investigation in European Economies

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  • AMENDOLA, Adalgiso

    (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy)

  • DELL'ANNO, Roberto

    (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy)

Abstract

The aims of this article are to propose an overall index of social exclusion and to analyze its relationship with economic growth in European countries. We approach social exclusion as a multidimensional phenomenon by a three-mode principal components analysis (Tucker3 model). This method is applied to estimate an indicator of social exclusion for 28 European countries between 1995 and 2010. The empirical evidence shows that in short run (a) Granger causality runs one way from social exclusion to economic growth and not the other way; (b) countries with a higher level of social exclusion have higher growth rates of real GDP per capita; and (c) social exclusion has a larger effect than the income inequality on the economic growth. The policy implications of our analysis is that social inclusion is not a source of economic growth in the short term.

Suggested Citation

  • AMENDOLA, Adalgiso & DELL'ANNO, Roberto, 2013. "Social Exclusion and Economic Growth: An Empirical Investigation in European Economies," CELPE Discussion Papers 126, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
  • Handle: RePEc:sal:celpdp:0126
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    Cited by:

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    2. Bosco, Bruno, 2019. "One size does not fit all: Quantile regression estimates of cross-country risk of poverty in Europe," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 280-299.
    3. Adalgiso Amendola & Roberto Dell�Anno, 2014. "Income inequality and economic growth: an empirical investigation in Mediterranean countries," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 68(2), pages 35-58, April-Jun.
    4. AMENDOLA, Adalgiso & DELL'ANNO, Roberto & PARISI, Lavinia, 2015. "Happiness, Inequality and Relative Concerns in European Countries," CELPE Discussion Papers 136, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    5. Frédéric Gaspart & Pierre Pecher, 2019. "Ethnic Inclusiveness of the Central State Government and Economic Growth in Sub-Saharan Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 28(2), pages 176-201.
    6. Nasibu Mramba, 2022. "Moving towards the social inclusion for street vendors in Tanzania: Current situation and perspectives," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(2), pages 296-305, March.
    7. Andrés-Rosales, Roldán & Bustamante Lemus, Carlos & Ramírez Argumosa, Giovanna Saraí, 2018. "Social Exclusion and Economic growth in the Mexican Regions: A Spatial Approach," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 40, pages 57-78.

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    More about this item

    Keywords

    Social exclusion; Economic Growth; Multidimensional index; Three-mode principal components analysis;
    All these keywords.

    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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