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ANALYSIS OF THE RELATIONSHIP BETWEEN SOCIAL CAPITAL AND BUSINESS CYCLE VOLATILITY IN EUROPEAN UNION COUNTRIE

Year 2021, Issue: 59, 359 - 374, 31.08.2021

Semih Çetin

https://doi.org/10.18070/erciyesiibd.889088

Abstract

In recent years, there has been an increasing interest in the issue of social capital, which has
been discussed among the dynamics of growth and has taken its place in economic develeopment
literature. On the other hand, due to the negative effects of cyclical fluctuations on welfare and
growth, it is important to investigate all possible causes of these fluctuations. From this point of view,
the effect of social capital on economic performance emerges as an important research topic. In this
study, the relationship between social capital and cyclical fluctuations was investigated using the fully
modified least squares (FMOLS) method for a sample of 15 EU member countries between 1995 and
2017. As a result, the study provides evidence that there is a significant relationship between these
variables.

Keywords

Social Capital Bussiness Cycle Volatility Panel Data Analysis (FMOLS)

References

  • Aghion, P., Algan, Y., Cahuc, P., Shleifer, A. (2010). Regulation and Distrust. The Quarterly Journal of Economics, August, 1015-1049.
  • Aghion, P., Angeletos, G., Banerjee, A., Manova, K. (2010). Volatility and Growth:Credit constraints and the composition of investment. Journal of Monetary Economics, 57, 246–265.
  • Algan, Y., Cahuc, P. and Shleifer, A. (2013). Teaching Practices and Social Capital. American Economic Journal: Applied Economics, 5(3), 189-210.
  • Almond, G. and Verba, S. (1989). The civic culture: Political attitudes and democracy in five nations. London: Sage Publications.
  • Altuğ, S., Neyaptı, B. and Emin, M. (2012). Institutions and Business Cycles. International Finance 15(3), 347–366.
  • AMECO (2020). Database of the European Commission's Directorate General for Economic and Financial Affairs. Erişim Adresi: https://ec.europa.eu/info/business-economy-euro/indicators-statistics/economic-databases/macro-economic-database-ameco/ameco-database_en
  • Beugelsdijk, S. and Schaik, T. (2005). Social capital and growth in European regions: an empirical test. European Journal of Political Economy, 21, 301–324.
  • Cabanillas, L.G. and Ruscher, E. (2008). The Great Moderation in the euro area: What role have macroeconomic policies played? European Commision Economic Papers, No.331.
  • Coleman, J. S. (1988). Social Capital in the Creation of Human Capital. The American Journal of Sociology 94, 95-120.
  • Dasgupta, P. (2000). Economic development and the idea of social capital. (Ismail Serageldin and Partha Dasgupta Eds.). Social Capital: A Multifaceted Perspective içinde Washington, DC: World Bank.
  • Debrun, X. and Kapoor, R. (2010). Fiscal Policy and Macroeconomic Stability: Automatic Stabilizers Work, Always and Everywhere. IMF Working Paper, No. 111.
  • Dee, T. S. (2004). Are there civic returns to education?, Journal of Public Economics 88, 1697– 1720.
  • Essers, D. (2012), Democracy and External Shock Resilience in Developing Countries: Evidence from the Great Recession. IOB Working Paper, No.2012(02).
  • Eurostat Database (2020). Erişim Adresi: http://ec.europa.eu/eurostat/data/database
  • Fatás, A. and Mihov, I. (2003).The Case For Restricting Fiscal Policy Discretion. The Quarterly Journal of Economics, 118, 1419-1447.
  • Fatas, A. and Mihov, I. (2009). The Euro and Fiscal Policy. NBER Working Paper, No.14722.
  • Francois P. and Zabojnik J. (2005). Trust, Social Capital, and Economic Development. Journal of the European Economic Association, 3(1), 51-94.
  • Fukuyama, F. (1995). Trust: The Social Virtues and the Creation of Prosperity. New York: The Free Press.
  • Fukuyama, F. (2001). Social Capital, Civil Society and Development. Third World Quarterly, 22(1), 7-20.
  • Furceri, D. and Jalles, J. T. (2016). Determinants and Effects of Fiscal Stabilization: New Evidence from Time-Varying Estimates, IMF Working Paper, Forthcoming.
  • Glaeser, E. L., Ponzetto, G. A. M. and Shleifer, A. (2007). Why Does Democracy Need Education?, Journal of Economic Growth, 12(2), 77-99
  • Glaeser, E. L., La Porta, R., Silanes, F., L. D. and Shleifer, A. (2004). Do Institutions Cause Growth? Journal of Economic Growth, 9(3): 271-303.
  • Goldin, C. and Katz, Lawrence F. (1999). Patterns of Social Capital: Stability and Change in Comparative Perspective: Part II. The Journal of Interdisciplinary History, 29(4), 683-723.
  • Helliwell, J. F. and Putnam R. D. (2007). Education and Social Capital. Eastern Economic Journal, 33(1), 1-19
  • IMF. (2005). World Economic Outlook, Globalization and External Imbalances. Erişim Adresi:https://www.imf.org/en/Publications/WEO/Issues/2016/12/31/Globalization-and-External-Imbalances.
  • Knack S. and Keefer P. (1997). Does Social Capital Have an Economic Payoff? A Cross-Country Investigation. The Quarterly Journal of Economics, 112(4), 1251-1288.
  • Kose, M.A., Prasad, E.S., Terrones, M.E. (2005). Growth and volatility in an era of globalization. IMF Staff Papers, 52, 31-63.
  • La Porta, R., Lopez-de-Silanes, F., Shleifer A., Vishny Robert W. (1997). Trust in Large Organizations. The American Economic Review, 87(2), 333-338.
  • Milligan, K., Moretti, E. and Oreopoulos, P. (2004). Does education improve citizenship? Evidence from the United States and the United Kingdom. Journal of Public Economics 88, 1667– 1695.
  • Mueller, D., C. (2003). Public Choice. New York:Cambridge University Press.
  • Nie, H., Junn, J. and Stehlik-Barry, K. (1996). Education and Democratic Citizenship in America. Chicago: University of Chicago Press.
  • Pedroni, P. (1999). Critical Values for Cointegration Tests in Heterogeneous Panels With Multiple Regressors, Oxford Bullettin of Economics and Statistics, 61(S1), 653-670.
  • Pedroni, P. (2000). Fully-Modified OLS for Heterogeneous Cointegrated Panels. Advances in Econometrics, 15, 93-130.
  • Ponzetto, G. A. M., Troiano, U. (2018). Social Capital, Government Expenditures and Growth, NBER Working Paper Series, No. 24533.
  • Putnam, D. R., Leonardi, R., Nanetti, Y. R. (1993). Making democracy work: Civic traditions in modem Italy. New Jersey: Princeton University Press.
  • Putnam, R. D. (2000). Bowling Alone: The Collapse and Revival of American Community. New York: Simon & Schuster
  • Sagnier, M. (2013). Does trust favor macroeconomic stability? Journal of Comparative Economics, 41, 653–668.
  • Solow, R. M. (1995). But Verify. The New Republic, 11, 36-39.
  • Tabellini, G. (2010). Culture and Instıtutıons: Economıc Development In The Regions Of Europe, Journal of the European Economic Association, 8(4), 677-716.
  • Wolfers, J. (2003). Is Business Cycle Volatility Costly? Evidence from Surveys of Subjective Well-Being. International Finance, 6(1), 1–26.
  • Zak P. J. and Knack S. (2001). Trust and Growth. The Economic Journal, 111, 295-321.

AVRUPA BİRLİĞİ ÜLKELERİNDE SOSYAL SERMAYE VE KONJONKTÜREL DALGALANMALAR İLİŞKİSİNİN ANALİZİ

Year 2021, Issue: 59, 359 - 374, 31.08.2021

Semih Çetin

https://doi.org/10.18070/erciyesiibd.889088

Abstract

Son yıllarda, büyümenin dinamikleri arasında tartışılmaya başlanan ve kalkınma
literatüründe kendisine yer edinen sosyal sermaye konusuna yönelik ilgi artmaktadır. Diğer taraftan
konjonktürel dalgalanmaların refah ve büyüme üzerine olan olumsuz etkileri sebebiyle, bu
dalgalanmaların tüm olası sebeplerini araştırmak önemli görülmektedir. Bu açıdan bakıldığında,
sosyal sermayenin ekonomik performans üzerinde nasıl bir etki yarattığı önemli bir araştırma konusu
olarak karşımıza çıkmaktadır. Bu çalışmada 1995-2017 yılları arasında 15 AB üyesi ülkeden oluşan
bir örneklem için, sosyal sermaye ve konjonktürel dalgalanmalar arasındaki ilişki tam değiştirilmiş en
küçük kareler (FMOLS) yöntemiyle araştırılmıştır. Çalışmada, sosyal sermaye ile konjonktürel
dalgalanmalar arasında negatif ve istatistiki olarak anlamlı bir ilişki olduğuna dair kanıt bulunmuştur.

Keywords

Sosyal Sermaye Konjonktürel Dalgalanmalar Panel Veri Analizi (FMOLS)

References

  • Aghion, P., Algan, Y., Cahuc, P., Shleifer, A. (2010). Regulation and Distrust. The Quarterly Journal of Economics, August, 1015-1049.
  • Aghion, P., Angeletos, G., Banerjee, A., Manova, K. (2010). Volatility and Growth:Credit constraints and the composition of investment. Journal of Monetary Economics, 57, 246–265.
  • Algan, Y., Cahuc, P. and Shleifer, A. (2013). Teaching Practices and Social Capital. American Economic Journal: Applied Economics, 5(3), 189-210.
  • Almond, G. and Verba, S. (1989). The civic culture: Political attitudes and democracy in five nations. London: Sage Publications.
  • Altuğ, S., Neyaptı, B. and Emin, M. (2012). Institutions and Business Cycles. International Finance 15(3), 347–366.
  • AMECO (2020). Database of the European Commission's Directorate General for Economic and Financial Affairs. Erişim Adresi: https://ec.europa.eu/info/business-economy-euro/indicators-statistics/economic-databases/macro-economic-database-ameco/ameco-database_en
  • Beugelsdijk, S. and Schaik, T. (2005). Social capital and growth in European regions: an empirical test. European Journal of Political Economy, 21, 301–324.
  • Cabanillas, L.G. and Ruscher, E. (2008). The Great Moderation in the euro area: What role have macroeconomic policies played? European Commision Economic Papers, No.331.
  • Coleman, J. S. (1988). Social Capital in the Creation of Human Capital. The American Journal of Sociology 94, 95-120.
  • Dasgupta, P. (2000). Economic development and the idea of social capital. (Ismail Serageldin and Partha Dasgupta Eds.). Social Capital: A Multifaceted Perspective içinde Washington, DC: World Bank.
  • Debrun, X. and Kapoor, R. (2010). Fiscal Policy and Macroeconomic Stability: Automatic Stabilizers Work, Always and Everywhere. IMF Working Paper, No. 111.
  • Dee, T. S. (2004). Are there civic returns to education?, Journal of Public Economics 88, 1697– 1720.
  • Essers, D. (2012), Democracy and External Shock Resilience in Developing Countries: Evidence from the Great Recession. IOB Working Paper, No.2012(02).
  • Eurostat Database (2020). Erişim Adresi: http://ec.europa.eu/eurostat/data/database
  • Fatás, A. and Mihov, I. (2003).The Case For Restricting Fiscal Policy Discretion. The Quarterly Journal of Economics, 118, 1419-1447.
  • Fatas, A. and Mihov, I. (2009). The Euro and Fiscal Policy. NBER Working Paper, No.14722.
  • Francois P. and Zabojnik J. (2005). Trust, Social Capital, and Economic Development. Journal of the European Economic Association, 3(1), 51-94.
  • Fukuyama, F. (1995). Trust: The Social Virtues and the Creation of Prosperity. New York: The Free Press.
  • Fukuyama, F. (2001). Social Capital, Civil Society and Development. Third World Quarterly, 22(1), 7-20.
  • Furceri, D. and Jalles, J. T. (2016). Determinants and Effects of Fiscal Stabilization: New Evidence from Time-Varying Estimates, IMF Working Paper, Forthcoming.
  • Glaeser, E. L., Ponzetto, G. A. M. and Shleifer, A. (2007). Why Does Democracy Need Education?, Journal of Economic Growth, 12(2), 77-99
  • Glaeser, E. L., La Porta, R., Silanes, F., L. D. and Shleifer, A. (2004). Do Institutions Cause Growth? Journal of Economic Growth, 9(3): 271-303.
  • Goldin, C. and Katz, Lawrence F. (1999). Patterns of Social Capital: Stability and Change in Comparative Perspective: Part II. The Journal of Interdisciplinary History, 29(4), 683-723.
  • Helliwell, J. F. and Putnam R. D. (2007). Education and Social Capital. Eastern Economic Journal, 33(1), 1-19
  • IMF. (2005). World Economic Outlook, Globalization and External Imbalances. Erişim Adresi:https://www.imf.org/en/Publications/WEO/Issues/2016/12/31/Globalization-and-External-Imbalances.
  • Knack S. and Keefer P. (1997). Does Social Capital Have an Economic Payoff? A Cross-Country Investigation. The Quarterly Journal of Economics, 112(4), 1251-1288.
  • Kose, M.A., Prasad, E.S., Terrones, M.E. (2005). Growth and volatility in an era of globalization. IMF Staff Papers, 52, 31-63.
  • La Porta, R., Lopez-de-Silanes, F., Shleifer A., Vishny Robert W. (1997). Trust in Large Organizations. The American Economic Review, 87(2), 333-338.
  • Milligan, K., Moretti, E. and Oreopoulos, P. (2004). Does education improve citizenship? Evidence from the United States and the United Kingdom. Journal of Public Economics 88, 1667– 1695.
  • Mueller, D., C. (2003). Public Choice. New York:Cambridge University Press.
  • Nie, H., Junn, J. and Stehlik-Barry, K. (1996). Education and Democratic Citizenship in America. Chicago: University of Chicago Press.
  • Pedroni, P. (1999). Critical Values for Cointegration Tests in Heterogeneous Panels With Multiple Regressors, Oxford Bullettin of Economics and Statistics, 61(S1), 653-670.
  • Pedroni, P. (2000). Fully-Modified OLS for Heterogeneous Cointegrated Panels. Advances in Econometrics, 15, 93-130.
  • Ponzetto, G. A. M., Troiano, U. (2018). Social Capital, Government Expenditures and Growth, NBER Working Paper Series, No. 24533.
  • Putnam, D. R., Leonardi, R., Nanetti, Y. R. (1993). Making democracy work: Civic traditions in modem Italy. New Jersey: Princeton University Press.
  • Putnam, R. D. (2000). Bowling Alone: The Collapse and Revival of American Community. New York: Simon & Schuster
  • Sagnier, M. (2013). Does trust favor macroeconomic stability? Journal of Comparative Economics, 41, 653–668.
  • Solow, R. M. (1995). But Verify. The New Republic, 11, 36-39.
  • Tabellini, G. (2010). Culture and Instıtutıons: Economıc Development In The Regions Of Europe, Journal of the European Economic Association, 8(4), 677-716.
  • Wolfers, J. (2003). Is Business Cycle Volatility Costly? Evidence from Surveys of Subjective Well-Being. International Finance, 6(1), 1–26.
  • Zak P. J. and Knack S. (2001). Trust and Growth. The Economic Journal, 111, 295-321.
There are 41 citations in total.

Details

Primary Language Turkish
Journal Section Makaleler
Authors

Semih Çetin 0000-0003-3290-1375

Publication Date August 31, 2021
Acceptance Date April 25, 2021
Published in Issue Year 2021 Issue: 59

Cite

APA Çetin, S. (2021). AVRUPA BİRLİĞİ ÜLKELERİNDE SOSYAL SERMAYE VE KONJONKTÜREL DALGALANMALAR İLİŞKİSİNİN ANALİZİ. Erciyes Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi(59), 359-374. https://doi.org/10.18070/erciyesiibd.889088

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