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
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Englisch
- Bibliographic citation
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Series: AGDI Working Paper ; No. WP/21/050
- Classification
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Wirtschaft
Institutions and Growth
Financial Institutions and Services: General
- Subject
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Economic growth
Financial development
Social capital
Threshold effect
- Event
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Geistige Schöpfung
- (who)
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Raheem, Ibrahim Dolapo
Ajide, Kazeem Bello
Xuan Vinh Vo
- Event
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Veröffentlichung
- (who)
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African Governance and Development Institute (AGDI)
- (where)
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Yaoundé
- (when)
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2021
- Handle
- Last update
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20.09.2024, 8:21 AM CEST
Data provider
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