Introduction: To identify of motivates and barriers to growth is
one of the most important issues in the economic growth literature.
Introducing endogenous growth models by Lucas (1988)
and Romer (1989) and the development of this theory in the 1990s, making it
possible to include economical, political and social variables in economic
theories to test them empirically. Corruption is one of the most important
variables in the economic development literature and it is mentioned as a
barrier to economic growth and versus social capital is known as Stimulus for
economic growth.
Methods: In the present study, a conceptive literature
review of the relationship between corruption and economic growth, social
capital and corruption is studied and the effect of social capital on the
economic growth is investigated too. Therefore, by specification of a system of
simultaneous equations, fundamental factors affecting corruption, the relation
among social capital, economic freedom, economic inequality and government size
with corruption and their relationship with economic growth was estimated.
At first, the relationships between variables are
depicted in two-dimensional space in R software like as quantiles regressions.
Cross section data 2007 and three-stage least square (3SLS) is used for
estimation of the simultaneous equations system.
Findings: The corruption has negative effect on economic
growth, and social capital has negative effect on economic growth. The latter
negative effect implies a positive effect of social capital on economic growth.
Discussion:
Accumulation of social capital,
economic freedom and growth of the labor force acted as a stimulus to economic
growth, and versus the spread of corruption and income inequality has acted as
a barrier to economic growth. So governments can adopt policies to reduce
social inequality and corruption, and encourage capital accumulation toward the
goal of economic growth.
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