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Regional social capital and the accumulation of physical capital by informal enterprises in India

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  • Dinesh Rajput
  • Binilkumar Amarayil Sreeraman

Abstract

This research examines the influence of regional social capital on the acquisition of physical capital by informal enterprises in India. The research analyses regional structural (bridging) social capital, regional relational (bonded) social capital, and regional cognitive social capital. We have employed data gathered over 15 years from three separate rounds of NSSO regarding informal enterprises in India. We utilised a pseudo-panel methodology developed by Deaton (1985) to examine the longitudinal impacts of regional social capital on the accumulation of physical capital, employing a robust standard error model with fixed effects. This is an innovative effort to measure regional social capital in Indian districts and its influence on informal enterprises. Our findings demonstrate that regional structural (bridging) social capital and regional cognitive social capital positively influence the formation of physical capital in informal enterprises. Nevertheless, regional relational (bonded) social capital hinders the creation of physical capital by informal enterprises.

Suggested Citation

  • Dinesh Rajput & Binilkumar Amarayil Sreeraman, 2026. "Regional social capital and the accumulation of physical capital by informal enterprises in India," International Journal of Indian Culture and Business Management, Inderscience Enterprises Ltd, vol. 37(5), pages 1-19.
    • Handle: RePEc:ids:ijicbm:v:37:y:2026:i:5:p:1-19
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