Social capital and growth: causal evidence from Italian municipalities

Corrado Andini and Monica Andini

Journal of Economic Geography, 2019, vol. 19, issue 3, 619-653

Abstract: The macroeconomic effects of social capital are typically studied using data at country, region or, at most, province level of aggregation. However, social capital is defined by connections among agents who know each other and its effects, if any, should be detected at a more detailed level of spatial aggregation. To the best of our knowledge, this is the first study using longitudinal municipality-level data to investigate the causal link between social capital and growth. We extend earlier research by accounting for the endogeneity of all the covariates as well as unobserved heterogeneity. The evidence suggests that social capital has been a source of growth inequality in Italy between 1951 and 2001. The causal effect of social capital on growth is positive, on average, and stronger in the Centre-North of Italy. In addition, it was higher in the 1950s. The paper also presents local estimates of the growth return to social capital, which are of interest for specific sub-populations of municipalities.

Keywords: Social capital; growth; Italy; municipality (search for similar items in EconPapers)
JEL-codes: O43 R11 Z13 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://hdl.handle.net/10.1093/jeg/lby024 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:jecgeo:v:19:y:2019:i:3:p:619-653.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Journal of Economic Geography is currently edited by Jorge De la Roca, Stephen Gibbons, Simona Iammarino, Amanda Ross and James Faulconbridge

More articles in Journal of Economic Geography from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().