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Social Capital, Public Spending and the Quality of Economic Development. The Case of Italy

Author

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  • Fabio Sabatini

    (University of Rome La Sapienza, Department of Public Economics)

Abstract

This paper carries out an empirical assessment of the relationship between social capital and the quality of economic development in Italy. The analysis draws on a dataset collected by the author including about two hundred variables representing different aspects of economic development and four “structural” dimensions of social capital. The quality of development is measured through human development and indicators of the state of health of urban ecosystems, public services, gender equality, and labour markets, while social capital is measured through synthetic indicators representing strong family ties, weak informal ties, voluntary organizations, and political participation. The quality of development exhibits a strong positive correlation with bridging weak ties and a negative correlation with strong family ties. Particularly, the analysis shows a strong correlation between informal ties and an indicator of “social well-being” (synthesizing gender equality, public services and labour markets) and between voluntary organizations and the state of health of urban ecosystems. Active political participation proves to be irrelevant in terms of development and well-being. Finally, the role of public spending for education, health care, welfare work, and the environment protection is analysed, revealing a scarce correlation both with social capital and development indicators.

Suggested Citation

  • Fabio Sabatini, 2005. "Social Capital, Public Spending and the Quality of Economic Development. The Case of Italy," Development and Comp Systems 0512011, EconWPA.
  • Handle: RePEc:wpa:wuwpdc:0512011
    Note: Type of Document - pdf; pages: 40. Paper accepted for presentation at the COE/JEPA (Center of Excellence / Japan Economic Policy Association) Joint International Conference, 'Towards a New Economic Paradigm', Kobe, Japan, 17-18 December 2005.
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/dev/papers/0512/0512011.pdf
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    Cited by:

    1. Coffé, Hilde & Geys, Benny, 2006. "Towards an empirical characterization of bridging and bonding social capital
      [Zur empirischen Charakterisierung von heterogenen (bridging) und homogenen (bonding) Arten des Sozialkapitals]
      ," Discussion Papers, Research Unit: Market Processes and Governance SP II 2006-11, Social Science Research Center Berlin (WZB).

    More about this item

    Keywords

    Social capital; Social networks; Public spending; Economic development; Human development; Principal component analysis;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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