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The Role of Social Capital in Financial Development

2004· article· en· 3,137 citations· W3123344732 on OpenAlex· 10.1257/0002828041464498

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Abstract

To identify the effect of social capital on financial development, we exploit social capital differences within Italy. In high-social-capital areas, households are more likely to use checks, invest less in cash and more in stock, have higher access to institutional credit, and make less use of informal credit. The effect of social capital is stronger where legal enforcement is weaker and among less educated people. These results are not driven by omitted environmental variables, since we show that the behavior of movers is still affected by the level of social capital of the province where they were born.

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The record

Venue
American Economic Review
Topic
Housing Market and Economics
Field
Economics, Econometrics and Finance
Canadian institutions
Kellogg's (Canada)
Funders
Keywords
Social capitalEconomicsEnforcementFinancial capitalExploitEconomic capitalFinanceDemographic economicsEconomic growthHuman capitalPolitical science
Has abstract in OpenAlex
yes