Open AccessREGIONAL ANALYSIS OF THE PACIFIC ALLIANCE COUNTRIES ON THE RELATIONSHIP BETWEEN INCOME INEQUALITY AND SOCIAL CAPITAL
Author(s) -
Nalleli Patricia Bolaños Pérez,
AUTHOR_ID,
Edgar J. Saucedo-Acosta
Publication year - 2022
Publication title -
diem
Language(s) - English
Resource type - Journals
eISSN - 1849-3645
pISSN - 1849-3653
DOI - 10.17818/diem/2022/1.1
Subject(s) - social capital , inequality , alliance , economic inequality , latin americans , economics , government (linguistics) , social inequality , capital (architecture) , panel data , demographic economics , development economics , resource (disambiguation) , panel analysis , political science , geography , econometrics , mathematical analysis , computer network , linguistics , philosophy , mathematics , archaeology , computer science , law
Social capital is considered a productive resource for societies. The increase in social trust is usually related to both economic growth and a reduction in inequality. In Latin American countries, and particularly the economies that belong to the Pacific Alliance, the relationship between social capital and income inequalities has not been studied at regional level. The paper aims to analyze whether social capital impacts income inequality in the case of the Pacific Alliance regions. Dynamic panel data models were used, covering 72 regions during the period 2002-2011. The results show that the decline in generalized trust and congress trust impacts negatively income inequality, while government trust, police trust and company trust have not effect.