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Social capital in Eibar, 1886–1985: dimensions, institutions and outcomes

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  • Igor Etxabe

    (Departamento de Historia e Instituciones Económicas, Facultad de Economía y Empresa, Universidad del País Vasco (UPV/EHU), Lehendakari Aguirre 83, E-48015 Bilbao, Spain)

Abstract

It is widely accepted that the generation of knowledge and its diffusion is an important mechanism in order to promote innovation and entrepreneurship, but many studies over-estimate the importance of spillovers and do not explain the actual dissemination of know-how. This involves looking into social capital in order to analyze the channels of tacit knowledge and the players involved. This paper tackles the role of social relationships as facilitators of the industrialization process in Eibar, an old industrial town in the Basque Country. From a micro-level approach, and applying social network analysis, co-ownership links, old-school personal relationships, voluntary association, or family ties between companies are investigated. The evidence shows that there is an informal network that forms a remarkable alternative for official channels of interaction, and helps to understand the industrial dynamism of the town. KEY Classification-JEL: D85. L14. R12. R58

Suggested Citation

  • Igor Etxabe, 2019. "Social capital in Eibar, 1886–1985: dimensions, institutions and outcomes," Investigaciones de Historia Económica - Economic History Research (IHE-EHR), Journal of the Spanish Economic History Association, Asociación Española de Historia Económica, vol. 15(03), pages 190-203.
    • Handle: RePEc:ahe:invest:v:15:y:2019:i:03:p:190-203
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    More about this item

    Keywords

    Social capital. Knowledge spillovers. Social network analysis. Basque Country;

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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