Linking social capital and economic development: new evidence from European regions

Jonathan Muringani

Chapter 9 in A Research Agenda for Social Capital in Economic Development, 2025, pp 200-223 from Edward Elgar Publishing

Abstract: Empirical studies have neglected how linking social capital affects economic development. A fixed effects panel data analysis of 190 regions in 21 EU countries covering eight waves from 2002 to 2016 shows that linking social capital has characteristics partly similar to bonding and bridging social capital. However, it also differs by exhibiting an inverted U-shaped relationship with economic development. It also moderates with opposite outcomes, where it reduces the effects of bonding and enhances that of bridging social capital on economic development. The policy implication is that there is a need to find a delicate balance when promoting linking social capital, as too little or too much can lead to undesirable economic outcomes.

Keywords: Social capital; Bridging; Bonding; Linking; Region; Economic development (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035315819
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