The relationship between social capital and economic growth on provincial and regional basis in Turkey: panel causality analysis

Abstract

The aim of this study is to investigate the relationship between economic growth and social capital on both a provincial and regional basis in Turkey during the period of 2007-2018. In the study, in which the social capital index was used as a current and comprehensive variable to represent social capital, the relations between the variables were analyzed with the panel Granger causality test. As a result of the empirical analysis, it was determined that there is a unilateral causality relationship from GDP to SOCAP in 16 provinces, from SOCAP to GDP in 9 provinces, and bilateral causality in 45 provinces. On the other hand, no significant relationship was found in 11 provinces.