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Social Capital And Industrial District Development: The Role Of The Local Government


  • castagna alina

    () (dmqte - university of chieti-pescara, management sciences)

  • colantonio emiliano

    (dmqte - university of chieti-pescara, management sciences)

  • furia donatella

    (dmqte - university of chieti-pescara, management sciences)


The paper represent a theoretical attempt to investigate the role that the local government can play in improving the level of social capital for the development of industrial districts. The social capital is not, as generally suggested by the socio-economic literature, an individual attitude towards something which does not imply privately appropriable economic benefits, as it is for a pure public good (which would not imply privately appropriable benefits). Social capital should be interpreted as a public component of an investment which implies private and public benefits entangled with each other. Firms could not have sufficient incentive to increase its investment in social capital, because this investment strictly depends on the economic convenience of investing in the impure public good. Starting from this point of view, we underline the importance of investing local public resources (funds, time and effort) for the development of the local social capital.

Suggested Citation

  • castagna alina & colantonio emiliano & furia donatella, 2012. "Social Capital And Industrial District Development: The Role Of The Local Government," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 284-289, July.
  • Handle: RePEc:ora:journl:v:1:y:2012:i:1:p:284-289

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    References listed on IDEAS

    1. Anil Rupasingha & Stephan J. Goetz & David Freshwater, 2002. "Social and institutional factors as determinants of economic growth: Evidence from the United States counties," Papers in Regional Science, Springer;Regional Science Association International, pages 139-155.
    2. Rupasingha, Anil & Goetz, Stephan J., 2007. "Social and political forces as determinants of poverty: A spatial analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(4), pages 650-671, August.
    3. Degli Antoni Giacomo, 2006. "Capitale sociale e crescita economica: una verifica empirica a livello regionale e provinciale," Rivista italiana degli economisti, Società editrice il Mulino, issue 3, pages 363-394.
    4. Rupasingha, Anil & Goetz, Stephan J. & Freshwater, David, 2000. "Social Capital and Economic Growth: A County-Level Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 32(03), pages 565-572, December.
    5. Daniel V. Rainey & Kenneth L. Robinson & Ivye Allen & Ralph D. Christy, 2003. "Essential Forms of Capital for Sustainable Community Development," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 708-715.
    6. Cainelli, Giulio & Mancinelli, Susanna & Mazzanti, Massimiliano, 2007. "Social capital and innovation dynamics in district-based local systems," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(6), pages 932-948, December.
    7. Sjoerd Beugelsdijk & Henri L.F. de Groot & Anton B.T.M. van Schaik, 2004. "Trust and economic growth: a robustness analysis," Oxford Economic Papers, Oxford University Press, vol. 56(1), pages 118-134, January.
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    More about this item


    districts; social capital; local government aid;

    JEL classification:

    • H49 - Public Economics - - Publicly Provided Goods - - - Other
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • J39 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Other


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