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Does Industrialization Build or Destroy Social Networks?

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  • Miguel, Edward
  • Gertler, Paul
  • Levine, David I

Abstract

This article estimates the relationship between changes in industrialization and changes in social networks measures in Indonesia during 1985-97 using repeated cross sections of nationally representative surveys. We analyze a rich set of social interaction measures, including various measures of voluntary associational activity, levels of trust, and informal cooperation. Districts that experienced rapid industrialization showed significant increases in most measures of social interaction. However, districts that neighbor rapidly industrializing areas exhibited high rates of out-migration, significantly fewer community credit cooperatives, and a reduction in "mutual cooperation" as assessed by village elders. Manufacturing growth can be thought of as a proxy for income growth here. The findings are contrary to several recent claims regarding the role of social capital in economic development.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Economic Development and Cultural Change.

Volume (Year): 54 (2006)
Issue (Month): 2 (January)
Pages: 287-317

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Handle: RePEc:ucp:ecdecc:y:2006:v:54:i:2:p:287-317

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Web page: http://www.journals.uchicago.edu/EDCC/

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Cited by:
  1. A. Lasagni & E. Lollo, 2011. "Participation in Rotating Savings and Credit Associations in Indonesia: New Empirical Evidence on Social Capital," Economics Department Working Papers 2011-EP05, Department of Economics, Parma University (Italy).
  2. Miller, Douglas L. & Scheffler, Richard & Lam, Suong & Rosenberg, Rhonda & Rupp, Agnes, 2006. "Social capital and health in Indonesia," World Development, Elsevier, Elsevier, vol. 34(6), pages 1084-1098, June.
  3. Casson, Mark C. & Della Giusta, Marina & Kambhampati, Uma S., 2010. "Formal and Informal Institutions and Development," World Development, Elsevier, Elsevier, vol. 38(2), pages 137-141, February.
  4. Bartolini, Stefano & Bonatti, Luigi, 2008. "Endogenous growth, decline in social capital and expansion of market activities," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 67(3-4), pages 917-926, September.
  5. Shoji, Masahiro & Aoyagi, Keitaro & Kasahara, Ryuji & Sawada, Yasuyuki, 2010. "Motives behind Community Participation," Working Papers, JICA Research Institute 16, JICA Research Institute.
  6. Buck, Steven & Alwang, Jeffrey Roger, 2006. "The Role of Trust in Knowledge Acquisition: Results from Field Experiments in the Ecuadorian Amazon," 2006 Annual meeting, July 23-26, Long Beach, CA, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 21139, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  7. Adaman, Fikret & Ardic, Oya Pinar & Tuzemen, Didem, 2006. "Network Effects in Risk Sharing and Credit Market Access: Evidence from Istanbul," MPRA Paper 4078, University Library of Munich, Germany, revised 01 Dec 2006.
  8. Bartolini, Stefano & Bonatti, Luigi, 2007. "Endogenous growth, decline in social capital and expansion of market activities," MPRA Paper 3341, University Library of Munich, Germany.
  9. Labonne, Julien & Chase, Robert S., 2008. "Do community-driven development projects enhance social capital ? evidence from the Philippines," Policy Research Working Paper Series 4678, The World Bank.
  10. Labonne, Julien & Chase, Robert S., 2008. "A road to trust," Policy Research Working Paper Series 4706, The World Bank.
  11. Labonne, Julien & Chase, Robert S., 2010. "A road to trust," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 74(3), pages 253-261, June.
  12. Scott Yabiku & Sarah Schlabach, 2009. "Social Change and the Relationships Between Education and Employment," Population Research and Policy Review, Springer, Springer, vol. 28(4), pages 533-549, August.
  13. Shoji, Masahiro & Aoyagi, Keitaro & Kasahara, Ryuji & Sawada, Yasuyuki & Ueyama, Mika, 2012. "Social Capital Formation and Credit Access: Evidence from Sri Lanka," World Development, Elsevier, Elsevier, vol. 40(12), pages 2522-2536.

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