Arbeitspapier

The hype of social capital in the finance-growth nexus

The trilogy among economic growth, social capital (SC), and financial development is exami ned based on three hypotheses: first, SC is important in the finance-growth nexus. Second, th ere is a threshold effect of SC in the finance-growth nexus. Third, the SC-finance-growth tril ogy depends on the countries' income level. Building dataset for 70 countries,someinteresting results were obtained: (i) the marginal effects of both SC and finance promotes economic gro wth at higher levels; (ii)there is evidence of a threshold effect of SC, as finance enhances mor e growth when SC is below the threshold level; (iii) higher-income countries tend not to bene fit from the SC-finance-growth trilogy. These results suggest that the influence of SC on gro wth trajectory is exaggerated in the literature. The study recommends that policymakers shoul d pursue other sources of economic growth aside SC, while ensuring that the level of SC does not deteriorate.

Language
Englisch

Bibliographic citation
Series: AGDI Working Paper ; No. WP/21/050

Classification
Wirtschaft
Institutions and Growth
Financial Institutions and Services: General
Subject
Economic growth
Financial development
Social capital
Threshold effect

Event
Geistige Schöpfung
(who)
Raheem, Ibrahim Dolapo
Ajide, Kazeem Bello
Xuan Vinh Vo
Event
Veröffentlichung
(who)
African Governance and Development Institute (AGDI)
(where)
Yaoundé
(when)
2021

Handle
Last update
20.09.2024, 8:21 AM CEST

Data provider

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Raheem, Ibrahim Dolapo
  • Ajide, Kazeem Bello
  • Xuan Vinh Vo
  • African Governance and Development Institute (AGDI)

Time of origin

  • 2021

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