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Social Capital and Economic Performance: some lessons from Farm Partnerships in Sweden

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  • Fragkandreas, Thanos
  • Larsen, Karin

Abstract

The social capital literature usually perceives social capital as dues ex machine for economic performance. In this paper we use existing social capital theory to develop a conceptual framework to explain; (i) the importance of organizational capital as the ‘missing link’ between social capital and economic performance, and (ii) the phenomenon of ‘complementarity’ of different forms of capital (i.e. Physical, Financial, Human, Social, Organizational and Economic Capital) as a prerequisite for economic performance. The conceptual framework is applied to Swedish farm partnerships involving machinery- and labour sharing. Our study suggest that (i) social capital combined with other forms of capital, such as financial, human, physical and organizational leads to greater economic outcomes and (ii) the creation of organizational capital can explain higher economic performance.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17916.

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Date of creation: 09 Aug 2009
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Handle: RePEc:pra:mprapa:17916

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Keywords: Social Capital; Organizational Capital; Farm Partnerships; Economic Performance;

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  1. Woolcock, Michael, 2001. "Microenterprise and social capital:: A framework for theory, research, and policy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 30(2), pages 193-198, March.
  2. Robison, Lindon J. & Schmid, A. Allan & Siles, Marcelo E., 1999. "Is Social Capital Really Capital?," Staff Papers 11649, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  3. Allen, Douglas W & Lueck, Dean, 1998. "The Nature of the Farm," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 343-86, October.
  4. Steven Durlauf & Marcel Fafchamps, 2004. "Social Capital," Development and Comp Systems 0409060, EconWPA.
    • Durlauf, Steven N. & Fafchamps, Marcel, 2005. "Social Capital," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 26, pages 1639-1699 Elsevier.
  5. Dufhues, Thomas & Buchenrieder, Gertrud & Fischer, Isabel, 2006. "Social capital and rural development: literature review and current state of the art," IAMO Discussion Papers 96, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
  6. Robison, Lindon J. & Siles, Marcelo E. & Schmid, A. Allan, 2002. "Social Capital And Poverty Reduction: Toward A Mature Paradigm," Agricultural Economic Report Series 10941, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  7. Joel Sobel, 2002. "Can We Trust Social Capital?," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 139-154, March.
  8. Lyon, Fergus, 2000. "Trust, Networks and Norms: The Creation of Social Capital in Agricultural Economies in Ghana," World Development, Elsevier, vol. 28(4), pages 663-681, April.
  9. Emery N. Castle, 1998. "A Conceptual Framework for the Study of Rural Places," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 621-631.
  10. Douglas W. Allen & Dean Lueck, 2004. "The Nature of the Farm: Contracts, Risk, and Organization in Agriculture," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262511851, December.
  11. Valentinov, Vladislav, 2003. "Social capital, transition in agriculture, and economic organisation: a theoretical perspective," IAMO Discussion Papers 53, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
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