Trust-based social capital, economic growth and property rights: Explaining the relationship

Abstract

The purpose of this paper is to attest whether generalized trust variable is the best proxy for social capital in explaining the latter’s effect on economic growth in a panel setting. Via a specially formulated theoretical framework, the authors also test whether the growth-effect of social capital is direct or indirect, and if it is indirect, can property rights be the link between social capital and growth. This is part of the ‘Politics, Finance and Growth’ project