Social Capital, GDP and Quality of Services

This chapter examines the interrelationships between social capital, GDP per capita, and a multi-dimensional index of quality of public services in Italian provinces from 2008 to 2022. The analysis confirms that these three dimensions are positively correlated, suggesting a mutually reinforcing “virtuous circle”, a finding already highlighted in the literature.
However, the strength of these associations has declined compared to previous studies, exhibiting a further slight decrease in the period we analyse. The link between social capital and GDP, while positive, has weakened and shows signs of a curvilinear relationship, possibly indicating a “defensive growth” dynamic where economic gains in wealthy areas may come at the expense of social cohesion. Similarly, the correlation between social capital and quality of services has decreased over time. The analysis extends beyond these core relationships, adopting preliminary regression models to demonstrate the significant role of these three factors in promoting social sustainability and cohesion, evidenced by their impact on reducing gambling, improving women’s quality of life, and encouraging donations toward municipality governments. The findings suggest that investing in social capital and promoting integrated policies that consider its interlinkages with economic development and quality of services are crucial for building more cohesive and sustainable communities.