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Does social capital create trust? Evidence from a community of entrepreneurs

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  • Sabatini, Fabio

    ()
    (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

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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Bibliographic Info

Paper provided by Associazione Italiana per la Cultura della Cooperazione e del Non Profit in its series AICCON Working Papers with number 58-2009.

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Length: 27 pages
Date of creation: 12 Jan 2009
Date of revision:
Handle: RePEc:ris:aiccon:2009_058

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

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  1. Sergio Mariotti & Marco Mutinelli & Lucia Piscitello, 2008. "The Internationalization of Production by Italian Industrial Districts' Firms: Structural and Behavioural Determinants," Regional Studies, Taylor & Francis Journals, vol. 42(5), pages 719-735.
  2. Sabatini, Fabio, 2009. "Social capital as social networks: A new framework for measurement and an empirical analysis of its determinants and consequences," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(3), pages 429-442, June.
  3. Fabio Sabatini, 2006. "The Empirics of Social Capital and Economic Development: A Critical Perspective," Working Papers 2006.15, Fondazione Eni Enrico Mattei.
  4. Oguzhan Dincer & Eric Uslaner, 2007. "Trust and Growth," Working Papers 2007.73, Fondazione Eni Enrico Mattei.
  5. Durlauf,S.N., 1999. "The case "against" social capital," Working papers 29, Wisconsin Madison - Social Systems.
  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.
  7. Antoci, Angelo & Sacco, Pier Luigi & Vanin, Paolo, 2007. "Social capital accumulation and the evolution of social participation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(1), pages 128-143, February.
  8. 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.
  9. 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.
  10. Fabio Sabatini, 2008. "Social Capital and the Quality of Economic Development," Kyklos, Wiley Blackwell, vol. 61(3), pages 466-499, 08.
  11. Paola Bertolini & Enrico Giovannetti, 2006. "Industrial districts and internationalization: the case of the agri-food industry in Modena, Italy," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 18(4), pages 279-304, July.
  12. Fabio Sabatini, 2006. "Social Capital and Labour Productivity in Italy," Working Papers 2006.30, Fondazione Eni Enrico Mattei.
  13. Alessia Amighini & Roberta Rabellotti, 2004. "How do Italian footwear industrial districts face globalization?," European Planning Studies, Taylor & Francis Journals, vol. 14(4), pages 485-502, November.
  14. Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, vol. 111(470), pages 295-321, April.
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