Isabella Santini

Social capital and its impact on the production process

Several empirical studies have shown the relevance of social capital to economic growth. Nevertheless some questions remain unanswered: How profound is the impact of social capital on the production process? What kind of relationships link traditional inputs, that is labour and physical capital, to social capital? This paper tries to answer these questions at a macroeconomic level within the context of social capital. Empirical base for the study is provided by examining social capital endowment in Italian provinces. The study provides evidence of a positive relationship between social capital and the production process.