The Effect of Government on Social Capital in Provinces of Iran

Document Type : Original Article

Authors

1 Ph.D. Candiddate in Economics, Faculty of Economics and Administrative Sciences, Lorestan University

2 Associate Professor of Economics, Faculty of Economics and Administrative Sciences, Lorestan University

3 Professor of Economics, Faculty of Economics and Social Sciences, Bu-Ali Sina University

Abstract

This study examines the effect of government size (government consumption expenditures as a share of GDP and government investment expenditures as a share of GDP) on social capital by using the panel data of the provinces of Iran during 2006-2013. In this regard, based on the Pathname and Coleman approach to measuring the social capital in the provinces, three levels of participation, trust and cohesion are considered and to combine the indicators, the factor analysis method has been used. Also, estimation of models was performed using panel co-integration analysis and Generalized Method of Moments (GMM). The results show that the government consumption expenditures as a share of GDP and government investment expenditures as a share of GDP and total of these two shares have a negative and significant effect on social capital in provinces of Iran. Therefore, one of the ways to strengthen social capital in the provinces is to adjust government activities.

Keywords

References

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