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The Role of Social Capital in Economic Development. Investigating the Causal Nexus through Structural Equations Models

Author

Listed:
  • Fabio Sabatini

    (University of Rome La Sapienza, Department of Public Economics)

Abstract

This paper carries out an empirical assessment of the causal nexus connecting social capital’s diverse aspects to the “quality” of economic development in Italy. The analysis accounts for three main social capital dimensions (i.e. bonding, bridging and linking social capital) and measures them through synthetic indicators built by means of principal component analyses performed on a dataset including multiple variables. The quality of development is measured through human development and indicators of the state of health of urban ecosystems, public services, social protection, gender equality, and labour markets. The causal relationship between social capital’s and development’s different dimensions is then assessed through structural equations models. The analysis in this paper provides relevant a proof of Putnam’s claims on the positive role of civil society organizations in development processes.

Suggested Citation

  • Fabio Sabatini, 2005. "The Role of Social Capital in Economic Development. Investigating the Causal Nexus through Structural Equations Models," Development and Comp Systems 0512014, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpdc:0512014
    Note: Type of Document - pdf; pages: 30
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/dev/papers/0512/0512014.pdf
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    Citations

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    Cited by:

    1. Fédes Rijn & Ephraim Nkonya & Adewale Adekunle, 2015. "The impact of agricultural extension services on social capital: an application to the Sub-Saharan African Challenge Program in Lake Kivu region," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 32(4), pages 597-615, December.
    2. D'ANGELO Emanuela & LILLA Marco, 2007. "Is there more than one linkage between Social Network and Inequality?," IRISS Working Paper Series 2007-12, IRISS at CEPS/INSTEAD.
    3. Ernest Miguelez & Rosina Moreno & Manuel Artis, 2011. "Does Social Capital Reinforce Technological Inputs in the Creation of Knowledge? Evidence from the Spanish Regions," Regional Studies, Taylor & Francis Journals, vol. 45(8), pages 1019-1038.
    4. Timilsina, Govinda R. & Hochman, Gal & Fedets, Iryna, 2016. "Understanding energy efficiency barriers in Ukraine: Insights from a survey of commercial and industrial firms," Energy, Elsevier, vol. 106(C), pages 203-211.
    5. Hochman, Gal & Timilsina, Govinda R., 2017. "Energy efficiency barriers in commercial and industrial firms in Ukraine: An empirical analysis," Energy Economics, Elsevier, vol. 63(C), pages 22-30.

    More about this item

    Keywords

    Social capital; Social networks; Civil Society; Economic development; Well-being; Labour precariousness; Structural Equations Modelling;
    All these keywords.

    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • P - Political Economy and Comparative Economic Systems

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