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|Title:||Trust based social capital, economic growth and property rights: Explaining the relationship|
Hall, Stephen G.
|Citation:||International Journal of Social Economics, 2015|
|Abstract:||Previous studies on social capital are able to show its significant growth-effect, however the majority of studies are in cross-sectional setting, and the widely used measure of social capital is generalized trust variable. Using panel estimation technique which hitherto has been limited in social capital studies, we show that generalized trust data obtained by the World Value Survey (WVS) are unable to yield sufficiently robust results in panel estimation due to missing observations problem. Subsequently, we propose a number of trust-alternative variables to proxy for social capital and re-estimate its effect on growth and property rights. The results improve significantly and we are able to show that social capital is a deep determinant of growth and it is affecting growth via property rights channel. The findings also give supporting evidence to the primacy of informal rules and constraints as proposed by North (2005) over the political prominence theory by Acemoglu, Johnson, & Robinson (2005). The results partially confirm the findings by Williamson & Kerekes (2011) on the underlying determinants of property rights and provide empirical support to the Clague, Keefer, Knack, & Olson (1999)’s argument of positive relationship between contract intensive money and property rights.|
|Embargo on file until:||1-Jul-2017|
|Rights:||Archived with reference to SHERPA/RoMEO and publisher website. This article is (c) Emerald Group Publishing and permission has been granted for this version to appear here http://hdl.handle.net/2381/32500. Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited. - See more at: http://www.emeraldgrouppublishing.com/authors/writing/author_rights.htm#sthash.N6IwTxpB.dpuf|
|Description:||JEL code: O43|
|Appears in Collections:||Published Articles, Dept. of Economics|
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|Mahyudin_samplepaper2_Trust based SC econ growth and property rights.pdf||Post-review (final submitted)||712.52 kB||Adobe PDF||View/Open|
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