Social Capital and Growth in Brazilian Municipalities

Luca Corazzini, Matteo Grazzi and Marcella Nicolini
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Luca Corazzini: University of Padua and ISLA, Bocconi University
Matteo Grazzi: Bocconi University

Chapter Chapter 9 in Innovation, Growth and Competitiveness, 2011, pp 195-217 from Springer

Abstract: Abstract Several authors (Coleman (1990) Foundations of social theory. Harvard University Press, Cambridge MA; Putnam RD (1993); Fukuyama (1995) Trust: the social virtues and the creation of prosperity. Free Press, New York) highlight that social capital could affect the economic performance of a country through a number of channels. Empirical evidence backs these theories, finding a positive relationship between growth, efficiency and the level of trust. Nonetheless, previous analyses focus on a single country or develop a cross-country dimension: we contribute to this literature by investigating the role of social capital at a sub national level. We focus on a country characterized by large disparities, Brazil, and we investigate the relationship between economic growth and social capital over the period 2000–2003, at the municipal level. We derive a number of social capital indicators from official data, and analyse them by means of factor component analysis. Overall, we find evidence of a positive relationship between social capital and income per capita growth.

Keywords: Social Capital; Human Capital; Economic Performance; Total Factor Productivity; Political Participation (search for similar items in EconPapers)
Date: 2011
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Working Paper: Social capital and Growth in Brazilian Municipalities (2007)
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DOI: 10.1007/978-3-642-14965-8_9

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