Does Social Capital Promote Industrialization? Evidence from a Rapid Industrializer

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Does Social Capital Promote Industrialization? Evidence from a Rapid Industrializer

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)

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David Levine

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. Copyright (c) 2005 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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

Volume (Year): 87 (2005)
Issue (Month): 4 (01)
Pages: 754-762
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Handle: RePEc:tpr:restat:v:87:y:2005:i:4:p:754-762

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Jeremy Edwards & Sheilagh Ogilvie, 2008. "Contract Enforcement, Institutions and Social Capital: the Maghribi Traders Reappraised," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
Other versions:
- Edwards, J. & Ogilvie, S., 2009. "Contract Enforcement, Institutions and Social Capital: the Maghribi Traders Reappraised," Cambridge Working Papers in Economics 0928, Faculty of Economics, University of Cambridge. [Downloadable!]
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. [Downloadable!]
Benjamin A. Olken, 2006. "Do Television and Radio Destroy Social Capital? Evidence from Indonesian Villages," Working Papers id:642, esocialsciences.com. [Downloadable!]

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