|Title:||Social Capital, Institutional Quality and Productivity: Evidence from European Regions|
Vol. 9, No 4, 2016
Published date: 12-2016 (print) / 12-2016 (online)
Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
|Keywords:||productivity, social capital, institutional quality, Europe, regions|
|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.