Formation of Social Capital in Central and Eastern Europe: Understanding the Gap Vis-a-Vis Developed Countries

35 Pages Posted: 26 May 2005  

Jan Fidrmuc

Brunel University - Department of Economics and Finance; Centre for Economic Policy Research (CEPR); University of Michigan at Ann Arbor - The William Davidson Institute

Klarita Gërxhani

University of Amsterdam - Faculty of Economics and Business (FEB); University of Amsterdam - Amsterdam Institute for Social Science Research (AISSR); University of Amsterdam - Amsterdam Institute for Advanced Labour Studies (AIAS)

Multiple version iconThere are 2 versions of this paper

Date Written: April 2005

Abstract

Recent Eurobarometer survey data are used to document and explain the stock of social capital in 27 European countries. Social capital in Central and Eastern Europe - measured by civic participation and access to social networks - lags behind that in Western European countries. Using regression analysis of determinants of individual stock of social capital, we find that this gap persists when we account for individual characteristics and endowments of respondents but disappears completely after we control for aggregate measures of economic development and quality of institutions. Informal institutions such as prevalence of corruption appear particularly important.

Keywords: Social capital, institutions, capitalism, transition

JEL Classification: Z13, P37, O57, O17

Suggested Citation

Fidrmuc, Jan and Gërxhani, Klarita, Formation of Social Capital in Central and Eastern Europe: Understanding the Gap Vis-a-Vis Developed Countries (April 2005). William Davidson Institute Working Paper No. 766. Available at SSRN: https://ssrn.com/abstract=729324 or http://dx.doi.org/10.2139/ssrn.729324

Jan Fidrmuc (Contact Author)

Brunel University - Department of Economics and Finance ( email )

Uxbridge UB8 3PH
United Kingdom
+44 1895 266 528 (Phone)
+44 1895 269 770 (Fax)

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

University of Michigan at Ann Arbor - The William Davidson Institute

724 E. University Ave.
Wyly Hall
Ann Arbor, MI 48109-1234
United States

Klarita Gërxhani

University of Amsterdam - Faculty of Economics and Business (FEB) ( email )

Oudezijds Achterburgwal 185
Amsterdam, 1012 DK
Netherlands

HOME PAGE: http://home.medewerker.uva.nl/k.gerxhani/

University of Amsterdam - Amsterdam Institute for Social Science Research (AISSR) ( email )

Oudezijds Achterburgwal 185
Amsterdam, 1012 DK
Netherlands

HOME PAGE: http://home.medewerker.uva.nl/k.gerxhani/

University of Amsterdam - Amsterdam Institute for Advanced Labour Studies (AIAS)

Amsterdam
Netherlands

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