Munich Personal RePEc Archive

Can Trust Explain Social Capital Effect on Property Rights and Growth?

Hall, Stephen G and Ahmad, Mahyudin (2013): Can Trust Explain Social Capital Effect on Property Rights and Growth? Forthcoming in: Procedia Economics and Finance (October 2013)

[img]
Preview
PDF
MPRA_paper_48440.pdf

Download (330kB) | Preview

Abstract

The consensus in growth literature has recognized the significant effects of institutions (including social capital and political institutions) towards economic growth. Utilizing the World Value Survey (WVS)’s trust variable that has often been used to represent social capital, and employing panel data technique which hitherto has been very limited in social capital studies, this study shows that WVS’ trust data suffer severe missing observation problem and the panel fixed effect estimation using such data produce highly unrobust results. Future research in social capital therefore needs to expand their measure of social capital beyond the WVS trust indicator. The results also indicate that political institutions effect on growth could possibly occur indirectly via property rights channel.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.