Social Capital, Entrepreneurship and Economic Growth: The Case of a Panel of Developed and Developing Countries

This article analyzes the relationship between social capital, entrepreneurship and economic growth for a panel of developed and developing countries during the period 1990-2004. Our study will be conducted using static and dynamic panel data method and a simultaneous equations model. The main results of this study are, first, the level of social capital and growth are significantly and positively correlated, on the other hand, social capital can also have indirect effects on economic growth through other variables specifically through entrepreneurial activity.