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Social Capital and Economic Performance in the American States

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  • Terrence Casey
  • Kevin Christ

Abstract

Objective. This study tests the claim that areas with higher levels of social capital have superior economic performance. Method. The 14‐measure index of social capital created by Robert Putnam is reconstructed for an extended time period and integrated into cross‐sectional regression models including physical capital, human capital, and other factors relevant to state economic performance. Results. The analysis shows that social capital has no discernable influence on aggregate measures of output and employment. However, it does have a positive and significant impact on measures of economic equality and employment stability. Conclusions. This study does not support the claim that social capital is a general prerequisite for prosperity, but it does suggest that it may serve to reinforce a particular mode of communitarian economic development.

Suggested Citation

  • Terrence Casey & Kevin Christ, 2005. "Social Capital and Economic Performance in the American States," Social Science Quarterly, Southwestern Social Science Association, vol. 86(4), pages 826-845, December.
    • Handle: RePEc:bla:socsci:v:86:y:2005:i:4:p:826-845
    DOI: 10.1111/j.0038-4941.2005.00358.x
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    1. Narayan, Deepa & Pritchett, Lant, 1999. "Cents and Sociability: Household Income and Social Capital in Rural Tanzania," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 871-897, July.
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    Cited by:

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    2. Parlee, Brenda L., 2015. "Avoiding the Resource Curse: Indigenous Communities and Canada’s Oil Sands," World Development, Elsevier, vol. 74(C), pages 425-436.
    3. Rhys Andrews & Gene A. Brewer, 2010. "Social Capital and Fire Service Performance: Evidence from the U.S. States," Social Science Quarterly, Southwestern Social Science Association, vol. 91(2), pages 576-591, June.
    4. Carlos Andres Moreno-Hurtado, & Diego Alejandro Ochoa-Jimenez, & Gonzalo Leonardo, & Izquierdo-Montoya, 2018. "A simplified endogenous economic growth model with social capital: Evidence for Ecuador," Business and Economic Horizons (BEH), Prague Development Center, vol. 14(2), pages 168-184, April.
    5. Kaasa, Anneli, 2016. "Culture, religion and productivity: Evidence from European regions," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 12(01), pages 1-18.
    6. Serra, Teresa & Poli, Elena, 2015. "Shadow prices of social capital in rural India, a nonparametric approach," European Journal of Operational Research, Elsevier, vol. 240(3), pages 892-903.
    7. Pilatin Abdulmuttalip & Hacıimamoğlu Tunahan, 2023. "The relationship between social capital and economic growth on a provincial and regional basis," Economics and Business Review, Sciendo, vol. 9(3), pages 153-180, October.
    8. Anneli Kaasa, 2018. "Intangible factors and productivity: Evidence from Europe at the regional level," Business and Economic Horizons (BEH), Prague Development Center, vol. 14(2), pages 300-325, April.
    9. Fidrmuc, Jan & Gërxhani, Klarita, 2008. "Mind the gap! Social capital, East and West," Journal of Comparative Economics, Elsevier, vol. 36(2), pages 264-286, June.
    10. Anneli Kaasa, 2016. "Culture, religion and productivity: Evidence from European regions," Business and Economic Horizons (BEH), Prague Development Center, vol. 12(1), pages 11-28, April.
    11. Neri, Frank & Ville, Simon, 2008. "Social capital renewal and the academic performance of international students in Australia," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(4), pages 1515-1538, August.
    12. Michele Hoyman & Jamie McCall & Laurie Paarlberg & John Brennan, 2016. "Considering the Role of Social Capital for Economic Development Outcomes in U.S. Counties," Economic Development Quarterly, , vol. 30(4), pages 342-357, November.

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