IDEAS home Printed from https://ideas.repec.org/a/ksp/journ5/v4y2017i1p54-63.html
   My bibliography  Save this article

Does Social Capital Have an Effect on Industry Production in G7 Countries? Causality Analysis

Author

Listed:
  • Oktay KIZILKAYA

    (Ahi Evran University, Faculty of Economics and Administrative Sciences, Department of Economics, Kýrþehir, Turkey.)

  • Murat ÇETÝNKAYA

    (Gazi University, School of Banking and Insurance, Department of Banking, Ankara, Turkey.)

  • Emrah SOFUOÐLU

    (Ahi Evran University, Faculty of Economics and Administrative Sciences, Department of Economics, Kýrþehir, Turkey.)

Abstract

The relationship between social capital and economic growth has become an attractive research area in the literature recently. In this context, this paper examines the relationship between social capital indicators and industry production in the period of 2006-2014 with monthly data for the G7 countries. For empirical analysis, panel causality analysis method developed by Dumitrescu & Hurlin (2012) was used. Results indicate that there is a bidirectional relationship between social capital indicators and industry production. These findings support feedback hypothesis in the context of social capital and economic growth in the G7 countries.

Suggested Citation

  • Oktay KIZILKAYA & Murat ÇETÝNKAYA & Emrah SOFUOÐLU, 2017. "Does Social Capital Have an Effect on Industry Production in G7 Countries? Causality Analysis," Journal of Economics Library, KSP Journals, vol. 4(1), pages 54-63, March.
    • Handle: RePEc:ksp:journ5:v:4:y:2017:i:1:p:54-63
    as

    Download full text from publisher

    File URL: http://www.kspjournals.org/index.php/JEL/article/download/1176/1187
    Download Restriction: no
    File URL: http://www.kspjournals.org/index.php/JEL/article/view/1176
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. John F. Helliwell & Robert D. Putnam, 1995. "Economic Growth and Social Capital in Italy," Eastern Economic Journal, Eastern Economic Association, vol. 21(3), pages 295-307, Summer.
    2. Sriya Iyer & Michael Kitson & Bernard Toh, 2005. "Social capital, economic growth and regional development," Regional Studies, Taylor & Francis Journals, vol. 39(8), pages 1015-1040.
    3. John F. Helliwell, 1996. "Economic Growth and Social Capital in Asia," NBER Working Papers 5470, National Bureau of Economic Research, Inc.
    4. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1251-1288.
    5. Giacomo A. M. Ponzetto & Ugo Troiano, 2012. "Social capital, government expenditures, and growth," Economics Working Papers 1307, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 2024.
    6. Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross‐Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, vol. 7(3), pages 207-227, November.
    7. Rupasingha, Anil & Goetz, Stephan J. & Freshwater, David, 2006. "The production of social capital in US counties," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(1), pages 83-101, February.
    8. Paul F. Whiteley, 2000. "Economic Growth and Social Capital," Political Studies, Political Studies Association, vol. 48(3), pages 443-466, June.
    9. Beugelsdijk, Sjoerd & van Schaik, Ton, 2005. "Social capital and growth in European regions: an empirical test," European Journal of Political Economy, Elsevier, vol. 21(2), pages 301-324, June.
    10. Neira, I. & Portela, M. & Vieira, E., 2010. "Social Capital and growth in European regions," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 10(2).
    11. Annen, Kurt, 2003. "Social capital, inclusive networks, and economic performance," Journal of Economic Behavior & Organization, Elsevier, vol. 50(4), pages 449-463, April.
    12. Knack, Stephen & Keefer, Philip, 1995. "Institutions and Economic Performance: Cross-Country Tests Using Alternative Institutional Indicators," MPRA Paper 23118, University Library of Munich, Germany.
    13. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    14. Roth, Felix, 2006. "Trust and Economic Growth: Conflicting Results between Cross-Sectional and Panel Analysis," Ratio Working Papers 102, The Ratio Institute, revised 15 Nov 2006.
    15. Paldam, Martin & Svendsen, Gert Tinggaard, 2000. "An essay on social capital: looking for the fire behind the smoke," European Journal of Political Economy, Elsevier, vol. 16(2), pages 339-366, June.
    16. Terrence Casey, 2004. "Social Capital and Regional Economies in Britain," Political Studies, Political Studies Association, vol. 52(1), pages 96-117, March.
    17. Mina Baliamoune-Lutz, 2005. "Institutions, Social Capital, and Economic Development in Africa: An Empirical Study," ICER Working Papers 18-2005, ICER - International Centre for Economic Research.
    18. Jonathan Temple & Paul A. Johnson, 1998. "Social Capability and Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(3), pages 965-990.
    19. Jesús Peiró-Palomino, 2016. "Social Capital and Economic Growth in Europe: Nonlinear Trends and Heterogeneous Regional Effects," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(5), pages 717-751, October.
    20. Fabio Sabatini, 2006. "The Empirics of Social Capital and Economic Development: A Critical Perspective," Working Papers 2006.15, Fondazione Eni Enrico Mattei.
    21. Kormendi, Roger C. & Meguire, Philip G., 1985. "Macroeconomic determinants of growth: Cross-country evidence," Journal of Monetary Economics, Elsevier, vol. 16(2), pages 141-163, September.
    22. Eve Parts, 2003. "Interrelationships Between Human Capital And Social Capital: Implications For Economic Development In Transition Economies," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 24, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    23. Mohammad Salahuddin & Clem Tisdell & Lorelle Burton & Khorshed Alam, 2015. "Social Capital Formation, Internet Usage and Economic Growth in Australia: Evidence from Time Series Data," International Journal of Economics and Financial Issues, Econjournals, vol. 5(4), pages 942-953.
    24. Woolcock, Michael & Narayan, Deepa, 2000. "Social Capital: Implications for Development Theory, Research, and Policy," The World Bank Research Observer, World Bank, vol. 15(2), pages 225-249, August.
    25. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
    26. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    27. Terrence Casey, 2004. "Social Capital and Regional Economies in Britain," Political Studies, Political Studies Association, vol. 52, pages 96-117, March.
    28. Hjerppe, Reino, 1998. "Social Capital and Economic Growth," Discussion Papers 183, VATT Institute for Economic Research.
    29. Isabel Neira & Emilia Vázquez & Marta Portela, 2009. "An Empirical Analysis of Social Capital and Economic Growth in Europe (1980–2000)," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 92(1), pages 111-129, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Helje Kaldaru & Eve Parts, 2008. "Social and institutional factors of economic development: evidence from Europe," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 8(1), pages 29-51, October.
    2. Gioacchino Fazio & Francesca Giambona & Erasmo Vassallo & Elli Vassiliadis, 2018. "A Measure of Trust: The Italian Regional Divide in a Latent Class Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 140(1), pages 209-242, November.
    3. Helje Kaldaru & Eve Parts, 2005. "The Effect Of Macro-Level Social Capital On Sustainable Economic Development," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 42, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    4. Ming Yu Cheng & Ron Mittelhammer, 2008. "Globalization and Economic Development: Impact of Social Capital and Institutional Building," American Journal of Economics and Sociology, Wiley Blackwell, vol. 67(5), pages 859-888, November.
    5. Baliamoune-Lutz, Mina, 2011. "Trust-based social capital, institutions, and development," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(4), pages 335-346, August.
    6. Antoci Angelo & Sabatini Fabio & Sodini Mauro, 2009. "Will growth and technology destroy social interaction? The inverted U-shape hypothesis," wp.comunite 0057, Department of Communication, University of Teramo.
    7. Fiorillo, Damiano, 2005. "Capitale Sociale Civile: una nota sui concetti e sulla evidenza empirica macro [Civil Social Capital: a note on the concepts and on the macro empirical evidence]," MPRA Paper 3822, University Library of Munich, Germany.
    8. Judit Kapas, 2017. "How Cultural Values Affect Economic Growth: A Critical Assessment Of The Literature," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 26(1), pages 265-285, june.
    9. Marco Ferroni & Mercedes Mateo Díaz & J. Mark Payne, 2007. "Development under Conditions of Inequality and Distrust: An Exploration of the Role of Social Capital and Social Cohesion in Latin America," IDB Publications (Working Papers) 53818, Inter-American Development Bank.
    10. Ilkhom SHARIPOV, 2016. "ECONOMIC GROWTH IN THE EU’S EaP COUNTRIES: DETERMINANTS AND PROSPECTS," EURINT, Centre for European Studies, Alexandru Ioan Cuza University, vol. 3, pages 169-187.
    11. Isabel Neira Gómez & Marta Portela, 2011. "Determinantes del capital social," Investigaciones de Economía de la Educación volume 6, in: Antonio Caparrós Ruiz (ed.), Investigaciones de Economía de la Educación 6, edition 1, volume 6, chapter 60, pages 986-1001, Asociación de Economía de la Educación.
    12. In Do Hwang, 2017. "Which Type of Trust Matters?:Interpersonal vs. Institutional vs. Political Trust," Working Papers 2017-15, Economic Research Institute, Bank of Korea.
    13. M. Menegatti, 2002. "Crescita e istituzioni: alcune schede riassuntive," Economics Department Working Papers 2002-EP01, Department of Economics, Parma University (Italy).
    14. Barbara Dettori & Emanuela Marrocu & Raffaele Paci, 2012. "Total Factor Productivity, Intangible Assets and Spatial Dependence in the European Regions," Regional Studies, Taylor & Francis Journals, vol. 46(10), pages 1401-1416, November.
    15. Mina Baliamoune‐Lutz, 2009. "Human Well‐Being Effects Of Institutions And Social Capital," Contemporary Economic Policy, Western Economic Association International, vol. 27(1), pages 54-66, January.
    16. Polimeni, John M. & Iorgulescu Polimeni, Raluca & Trees, W. Scott, 2007. "Extending The Augmented Solow Growth Model To Explain Transitional Economies," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 4(1), pages 65-76, March.
    17. Jonathan Muringani & Rune D Fitjar & Andrés Rodríguez-Pose, 2021. "Social capital and economic growth in the regions of Europe," Environment and Planning A, , vol. 53(6), pages 1412-1434, September.
    18. Xindong Xue & W. Robert Reed & Robbie C.M. van Aert, 2022. "Social Capital and Economic Growth: A Meta-Analysis," Working Papers in Economics 22/20, University of Canterbury, Department of Economics and Finance.
    19. Sabatini, Fabio, 2006. "The Empirics of Social Capital and Economic Development: A Critical Perspective," Knowledge, Technology, Human Capital Working Papers 12097, Fondazione Eni Enrico Mattei (FEEM).
    20. Hall, Stephen G & Ahmad, Mahyudin, 2013. "Can Trust Explain Social Capital Effect on Property Rights and Growth?," MPRA Paper 48440, University Library of Munich, Germany.

    More about this item

    Keywords

    Social capital; Industry production; Economic growth; Panel causality; G7 Countries.;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ksp:journ5:v:4:y:2017:i:1:p:54-63. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bilal KARGI The email address of this maintainer does not seem to be valid anymore. Please ask Bilal KARGI to update the entry or send us the correct address (email available below). General contact details of provider: http://www.kspjournals.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.