Social Cohesion and Economic Growth: An Empirical Investigation

Abstract

This study is an attempt to empirically investigate the effect of social cohesion on economic growth by using panel data for a large set of countries. We have used two different indices—Intergroup Cohesion and Membership of Clubs and Voluntary Associations—as a proxy for social cohesion. Our empirical findings suggest that different dimensions of social cohesion do not have the same kind of effect on economic growth. Intergroup Cohesion (bridging social capital) has a positive and significant effect, whereas Membership of Clubs and Voluntary Associations (bonding social capital) has a negative and significant relationship with economic growth.