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Bridging and Bonding Social Capital: which type is good for economic growth?

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Author Info
Sjoerd Beugelsdijk ()
Sjak Smulders

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Abstract

In this paper we develop a model of growth and social capital, and test it using data from the European Value Survey (EVS). Following Putnam’s distinction between bonding and bridging social capital, we model social capital as participation in two types of social networks: first, closed networks of family and friends, and, second, open networks that bridge different communities. Agents have a preference for social interaction, which they trade off against material well-being. Participation in both social networks is time-consuming and comes at the cost of participation in the formal economic sphere and working time. Through this channel, higher levels of social capital may crowd out economic growth. In addition, participation in intercommunity networks reduces incentives for rent seeking and cheating. Through this channel, higher level of bridging social capital may enhance economic growth. Testing the model, we find that regional differences in materialistic attitudes and the value attached to family life significantly reduce the participation in open networks and that this in turn reduces regional output growth in Europe.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa03p517.

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Date of creation: Aug 2003
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Handle: RePEc:wiw:wiwrsa:ersa03p517

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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. Beugelsdijk, S. & Schaik, T. van, 2001. "Social capital and regional economic growth," Discussion Paper 102, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  2. Steven N. Durlauf, 2002. "On the Empirics of Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 459-479, November. [Downloadable!] (restricted)
  3. Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March. [Downloadable!] (restricted)
  4. Rebelo, Sergio, 1991. "Long-Run Policy Analysis and Long-Run Growth," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 500-521, June. [Downloadable!] (restricted)
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  5. Quah, Danny, 1996. "Regional Convergence Clusters Across Europe," CEPR Discussion Papers 1286, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  6. Marcel Fafchamps, 2002. "Returns to social network capital among traders," Oxford Economic Papers, Oxford University Press, vol. 54(2), pages 173-206, April.
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  7. 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.
  8. Begg, Iain, 1995. "Factor Mobility and Regional Disparities in the European Union," Oxford Review of Economic Policy, Oxford University Press, vol. 11(2), pages 96-112, Summer.
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  13. Torsvik, G., 2000. "Social Capital and Economic Development," Norway; Department of Economics, University of Bergen 216, Department of Economics, University of Bergen.
  14. Richins, Marsha L & Dawson, Scott, 1992. " A Consumer Values Orientation for Materialism and Its Measurement: Scale Development and Validation," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 19(3), pages 303-16, December.
  15. Belk, Russell W, 1985. " Materialism: Trait Aspects of Living in the Material World," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 12(3), pages 265-80, December.
  16. Peter Nijkamp & Jacques Poot, 1997. "Spatial Perspectives on New Theories of Economic Growth," Tinbergen Institute Discussion Papers 97-056/3, Tinbergen Institute.
  17. Alan B. Krueger & Mikael Lindahl, 2001. "Education for Growth: Why and for Whom?," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1101-1136, December. [Downloadable!] (restricted)
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  18. Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2002. "An Economic Approach to Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 437-458, November. [Downloadable!] (restricted)
  19. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
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Cited by:
(explanations, 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. Dzialek, Jaroslaw, 2009. "Social capital and economic growth in Polish regions," MPRA Paper 18287, University Library of Munich, Germany. [Downloadable!]
  2. Growiec, Jakub & Growiec, Katarzyna, 2007. "Social Capital, Well-Being, and Earnings: Theory and Evidence from Poland," MPRA Paper 7071, University Library of Munich, Germany. [Downloadable!]
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