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Does Social Capital Promote Industrialization? Evidence from a Rapid Industrializer

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Author Info

  • Edward Miguel

    (University of California, Berkeley and NBER)

  • Paul Gertler

    (University of California, Berkeley and NBER)

  • David I. Levine

    (University of California, Berkeley)

Abstract

A new stylized fact in development economics is the importance of social capital in promoting economic growth. This paper examines the effect of social capital on industrialization in Indonesia. We analyze a rich set of social capital and social interaction measures, including voluntary associational activity and levels of trust and informal cooperation. The main finding is that initial social capital does not predict subsequent industrial development across 274 Indonesian districts. Though these findings are for only a single nation and may not apply everywhere, they call into question recent claims regarding social capital and economic development. © 2005 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 87 (2005)
Issue (Month): 4 (November)
Pages: 754-762

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Handle: RePEc:tpr:restat:v:87:y:2005:i:4:p:754-762

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Web page: http://mitpress.mit.edu/journals/

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Cited by:
  1. Feigenberg, Benjamin & Field, Erica Marie & Pande, Rohini, 2010. "Building Social Capital Through Microfinance," Scholarly Articles 4449105, Harvard Kennedy School of Government.
  2. Miller, Douglas L. & Scheffler, Richard & Lam, Suong & Rosenberg, Rhonda & Rupp, Agnes, 2006. "Social capital and health in Indonesia," World Development, Elsevier, vol. 34(6), pages 1084-1098, June.
  3. Dethier, Jean-Jacques & Hirn, Maximilian & Straub, Stephane, 2008. "Explaining Enterprise Performance in Developing Countries with Business Climate Survey Data," Policy Research Working Paper Series 4792, The World Bank.
  4. Yamamura, Eiji, 2010. "The role of social trust in reducing long-term truancy and forming human capital in Japan," MPRA Paper 26407, University Library of Munich, Germany.
  5. Danis, Wade M. & De Clercq, Dirk & Petricevic, Olga, 2011. "Are social networks more important for new business activity in emerging than developed economies? An empirical extension," International Business Review, Elsevier, vol. 20(4), pages 394-408, August.
  6. Giuseppe Albanese & Guido de Blasio, 2014. "Civic Capital and Development: Italy, 1951-2001," Quaderni di storia economica (Economic History Working Papers) 32, Bank of Italy, Economic Research and International Relations Area.
  7. Benjamin A. Olken, 2009. "Do Television and Radio Destroy Social Capital? Evidence from Indonesian Villages," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 1-33, October.
  8. yamamura, eiji, 2008. "Dynamics of social trust and human capital in the learning process: The case of the Japan garment cluster in the period 1968-2005," MPRA Paper 10251, University Library of Munich, Germany.
  9. Enrico Santarelli & Hien Tran, 2013. "The interplay of human and social capital in shaping entrepreneurial performance: the case of Vietnam," Small Business Economics, Springer, vol. 40(2), pages 435-458, February.
  10. Bouma, Jetske & Bulte, Erwin & van Soest, Daan, 2008. "Trust and cooperation: Social capital and community resource management," Journal of Environmental Economics and Management, Elsevier, vol. 56(2), pages 155-166, September.
  11. Kim, Byung-Yeon & Kang, Youngho, 2014. "Social capital and entrepreneurial activity: A pseudo-panel approach," Journal of Economic Behavior & Organization, Elsevier, vol. 97(C), pages 47-60.
  12. Krishna Paudel & Mark Schafer, 2009. "The Environmental Kuznets Curve Under a New Framework: The Role of Social Capital in Water Pollution," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 42(2), pages 265-278, February.
  13. Ogilvie, Sheilagh & Carus, A.W., 2014. "Institutions and Economic Growth in Historical Perspective," Handbook of Economic Growth, in: Handbook of Economic Growth, edition 1, volume 2, chapter 8, pages 403-513 Elsevier.
  14. De Clercq, Dirk & Danis, Wade M. & Dakhli, Mourad, 2010. "The moderating effect of institutional context on the relationship between associational activity and new business activity in emerging economies," International Business Review, Elsevier, vol. 19(1), pages 85-101, February.
  15. Yamamura, Eiji, 2008. "The role of social capital in homogeneous society: Review of recent researches in Japan," MPRA Paper 11385, University Library of Munich, Germany.
  16. Casson, Mark C. & Della Giusta, Marina & Kambhampati, Uma S., 2010. "Formal and Informal Institutions and Development," World Development, Elsevier, vol. 38(2), pages 137-141, February.

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