Banfield was right. Local development and cooperatives in Italy

Marco Percoco

L'industria, 2012, issue 2, 283-304

Abstract: A growing body of literature has started to study the impact of social capital on local development, according to Putnam's(1993) hypothesis. In this paper I focus on Italian provinces and try to relate the diffusion of social cooperatives to value added per capita. To tackle the issue of endogeneity I relied on the amoral familism theory proposed by Banfield. Hence the presence of cooperatives is instrumented by using the prevalence of family types in the Fifties. I found support to the research hypothesis, although empirical evidence on Center-Northern provinces is weak.

Keywords: Local Development, Not-for Profit Sector, Banfield, Social Capital. JEL Classification: O510; R110; Z130 (search for similar items in EconPapers)
Date: 2012
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