Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Social Capital, Institutional Quality and Productivity: Evidence from European Regions
Issue: Vol. 9, No 4, 2016
Published date: 12-2016 (print) / 12-2016 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Anneli Kaasa
Keywords: productivity, social capital, institutional quality, Europe, regions
DOI: 10.14254/2071-789X.2016/9-4/1
Index PUBMS: c7b47b98-0208-11e8-94c4-fa163e5d4f72
Language: English
Pages: 11-26 (16)
JEL classification: J24, O40, R11, K40

This study investigates how institutional quality and different dimensions of social capital influence a region’s labour productivity. As a novelty, regional-level data (80 regions of 24 European countries) were analysed and five different dimensions of social capital were included. Correlation and regression analysis were conducted. The results showed institutional trust and civic participation, which have not received much attention in the literature, to be the most important for productivity. Improving institutional quality would be helpful for productivity, but people’s perception of institutional quality, trust in institutions and feeling of participation is even more important.