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Does Social Capital Create Trust? Evidence from a Community of Entrepreneurs

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Author Info
Fabio Sabatini (University of Siena)

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Abstract

Which kind of social capital fosters the diffusion of development-oriented trust? This paper carries out an empirical investigation into the causal relationships connecting four types of social capital (i.e. bonding, bridging, linking, and corporate), and different forms of trust (knowledge-based trust, social trust, trust towards public services and political institutions), in a community of entrepreneurs located in the Italian industrial district of the Tuscia. Our results suggest that the main factors fostering the diffusion of social trust among entrepreneurs are the perception that the local community is a safe place, and the establishment of corporate ties through professional associations. Trust in people is positively and significantly correlated also to higher levels of satisfaction and confidence in public services. Participation in voluntary organizations does not appear to increase trust in people. Rather, we find evidence of the other way round: interpersonal trust seems to encourage civic engagement.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2009.44.

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Date of creation: Jun 2009
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Handle: RePEc:fem:femwpa:2009.44

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Related research
Keywords: Trust; Social capital; Safety; Professional associations; Entrepreneurship; Corporate ties; Group and Interpersonal Processes; Social Perception and Cognition;

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Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, vol. 111(470), pages 295-321, April. [Downloadable!] (restricted)
  2. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1251-88, November.
  3. Sabatini Fabio, 2007. "The empirics of social capital and economic development: A critical perspective," wp.comunite 0031, Department of Communication, University of Teramo. [Downloadable!]
    Other versions:
  4. Antoci, Angelo & Sacco, Pier Luigi & Vanin, Paolo, 2007. "Social capital accumulation and the evolution of social participation," The Journal of Socio-Economics, Elsevier, vol. 36(1), pages 128-143, February. [Downloadable!] (restricted)
    Other versions:
  5. Fabio Sabatini, 2008. "Social Capital and the Quality of Economic Development," Kyklos, Blackwell Publishing, vol. 61(3), pages 466-499, 08. [Downloadable!] (restricted)
  6. Fabio, Sabatini, 2005. "The empirics of social capital and economic development: a critical perspective," MPRA Paper 2366, University Library of Munich, Germany, revised Mar 2007. [Downloadable!]
    Other versions:
  7. Coates, Dennis & Heckelman, Jac C, 2003. " Interest Groups and Investment: A Further Test of the Olson Hypothesis," Public Choice, Springer, vol. 117(3-4), pages 333-40, December. [Downloadable!] (restricted)
  8. repec:att:wimass:19199929 is not listed on IDEAS
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This page was last updated on 2009-12-3.


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