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Globalization and social networks

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  • Fischer, Justina A.V.

Abstract

Globalization is a universal phenomenon that not only makes domestic economies restructure, but also may impact other areas of local societies. This paper studies the effect of globalization on human relations, in particular on the formation of social networks, both bonding and bridging: I postulate that globalization induces labor market and workplace dynamics that would be destructive. Data come from the European and World Values Survey (1981-2008) on about 320’000 people’s values and attitudes, in this study spanning up to 22 years in about 80 countries, which have been matched with an index of economic globalization. In this pseudo micro panel I find robust evidence for a diminishing effect of globalization for bridging social networks with friends, but an enforcing one for bonding social networks among relatives. These results do not appear to be driven by a change in individuals’ preferences with respect to consuming and forming social ties. My findings are consistent with theories that claim growing physical distance and stronger reliance on family resources to lower the level of bridging social networks in society.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 40404.

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Date of creation: 31 Jul 2012
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Handle: RePEc:pra:mprapa:40404

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Keywords: social capital; social networks; globalization; international trade; World Values Survey;

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  1. Alberto F. Alesina & Paola Giuliano, 2009. "Family Ties and Political Participation," NBER Working Papers 15415, National Bureau of Economic Research, Inc.
  2. Jordahl, Henrik, 2007. "Inequality and Trust," Working Paper Series, Research Institute of Industrial Economics 715, Research Institute of Industrial Economics.
  3. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, American Economic Association, vol. 89(3), pages 379-399, June.
  4. Rachel M. McCleary & Robert J. Barro, 2006. "Religion and Economy," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 20(2), pages 49-72, Spring.
  5. Fields, Gary S., 1975. "Rural-urban migration, urban unemployment and underemployment, and job-search activity in LDCs," Journal of Development Economics, Elsevier, Elsevier, vol. 2(2), pages 165-187, June.
  6. Fischer, Justina A.V. & Somogyi, Frank, 2012. "Globalization and protection of employment," MPRA Paper 39426, University Library of Munich, Germany.
  7. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(4), pages 1251-88, November.
  8. James E. Rauch, 2001. "Business and Social Networks in International Trade," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 39(4), pages 1177-1203, December.
  9. Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2002. "An Economic Approach to Social Capital," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(483), pages 437-458, November.
  10. Alícia Adserà, 2004. "Changing fertility rates in developed countries. The impact of labor market institutions," Journal of Population Economics, Springer, Springer, vol. 17(1), pages 17-43, February.
  11. Anne O. Krueger, 1983. "Trade and Employment in Developing Countries, 3: Synthesis and Conclusions," NBER Books, National Bureau of Economic Research, Inc, number krue83-1, July.
  12. Fischer, Justina A.V., 2012. "The choice of domestic policies in a globalized economy," MPRA Paper 36990, University Library of Munich, Germany.
  13. Cattell, Vicky, 2001. "Poor people, poor places, and poor health: the mediating role of social networks and social capital," Social Science & Medicine, Elsevier, Elsevier, vol. 52(10), pages 1501-1516, May.
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