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2022 | OriginalPaper | Chapter

Social Capital and Income Inequality in OECD Countries: Causality Evidence

Authors : Nalleli Patricia Bolaños Pérez, Edgar J. Saucedo-Acosta

Published in: Business Development and Economic Governance in Southeastern Europe

Publisher: Springer International Publishing

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Abstract

Social capital has declined in both developments and in other developing economies, while income inequality has tended to increase. Recent studies show the correlation between social capital and income inequalities, while few studies analyse the direction of causality at a macro level. This paper aims to investigate the causal relationship between generalised trust, as well as income inequalities in 23 economies belonging to the Organisation for Economic Cooperation and Development (OECD) from 2000 to 2019. In this study, we use the application of a fully modified least squares model (FMOLS) and the canonical correlation regression estimator (CCR). In addition, the unit root and cointegration test is applied before applying the Granger causality test. The findings show that there is a bidirectional relationship between social capital and income inequality.

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Title: Social Capital and Income Inequality in OECD Countries: Causality Evidence
Authors: Nalleli Patricia Bolaños Pérez
Edgar J. Saucedo-Acosta
Publisher: Springer International Publishing
Book: Business Development and Economic Governance in Southeastern Europe
Print ISBN: 978-3-031-05350-4

Electronic ISBN: 978-3-031-05351-1

Copyright Year: 2022
DOI: https://doi.org/10.1007/978-3-031-05351-1_2

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