IDEAS home Printed from https://ideas.repec.org/a/sae/ecdequ/v30y2016i4p342-357.html
   My bibliography  Save this article

Considering the Role of Social Capital for Economic Development Outcomes in U.S. Counties

Author

Listed:
  • Michele Hoyman
  • Jamie McCall
  • Laurie Paarlberg
  • John Brennan

Abstract

The authors examine major aspects of the connection between social capital and economic development in U.S. counties. They test the conclusions of Putnam, who saw associations as a force for positive development, and Olson, who concluded the opposite. The authors find that Putnam organizations have a negative effect on income, while Olson organizations have a positive effect by decreasing levels of income inequality. Drawing on the literature distinguishing between bridging versus bonding, the authors show that bridging capital has a positive effect on development by increasing per capita income, while bonding capital has a neutral effect on both per capita income and income inequality. Finally, religious variables are tested for their relationship with economic development. Overall, congregation density has a negative influence by increasing per capita income and income inequality, controlling for geographic type. Congregations with bridging characteristics have a mixed effect on development by decreasing income and decreasing inequality.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:ecdequ:v:30:y:2016:i:4:p:342-357
    DOI: 10.1177/0891242416659135
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0891242416659135
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0891242416659135?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. McCleary, Rachel & Barro, Robert, 2003. "Religion and Economic Growth across Countries," Scholarly Articles 3708464, Harvard University Department of Economics.
    2. 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.
    3. John F. Helliwell & Robert D. Putnam, 1995. "Economic Growth and Social Capital in Italy," Eastern Economic Journal, Eastern Economic Association, vol. 21(3), pages 295-307, Summer.
    4. James R. Hines & Hilary Hoynes & Alan B. Krueger, 2001. "Another Look at Whether a Rising Tide Lifts All Boats," Working Papers 833, Princeton University, Department of Economics, Industrial Relations Section..
    5. Montalvo, Jose G. & Reynal-Querol, Marta, 2003. "Religious polarization and economic development," Economics Letters, Elsevier, vol. 80(2), pages 201-210, August.
    6. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-1044, September.
    7. Paldam, Martin, 2000. "Social Capital: One or Many? Definition and Measurement," Journal of Economic Surveys, Wiley Blackwell, vol. 14(5), pages 629-653, December.
    8. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-338, May.
    9. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1251-1288.
    10. Matthew O. Jackson & Tomas Rodriguez-Barraquer & Xu Tan, 2012. "Social Capital and Social Quilts: Network Patterns of Favor Exchange," American Economic Review, American Economic Association, vol. 102(5), pages 1857-1897, August.
    11. Belal Fallah & Mark Partridge, 2007. "The elusive inequality-economic growth relationship: are there differences between cities and the countryside?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 41(2), pages 375-400, June.
    12. Knack, Stephen, 2003. "Groups, Growth and Trust: Cross-Country Evidence on the Olson and Putnam Hypotheses," Public Choice, Springer, vol. 117(3-4), pages 341-355, December.
    13. Rupasingha, Anil & Chilton, John b., 2009. "Religious adherence and county economic growth in the US," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 438-450, October.
    14. Tarrow, Sidney, 1996. "Making Social Science Work Across Space and Time: A Critical Reflection on Robert Putnam's Making Democracy Work," American Political Science Review, Cambridge University Press, vol. 90(2), pages 389-397, June.
    15. Dennis Coates & Jac Heckelman & Bonnie Wilson, 2011. "Special-interest groups and growth," Public Choice, Springer, vol. 147(3), pages 439-457, June.
    16. 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(3), pages 565-572, December.
    17. Rupasingha, Anil & Goetz, Stephan J. & Freshwater, David, 2006. "The production of social capital in US counties," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(1), pages 83-101, February.
    18. Foley, Michael W. & Edwards, Bob, 1999. "Is It Time to Disinvest in Social Capital?," Journal of Public Policy, Cambridge University Press, vol. 19(2), pages 141-173, May.
    19. Anil Rupasingha & Stephan J. Goetz & David Freshwater, 2002. "Social and institutional factors as determinants of economic growth: Evidence from the United States counties," Review of Economic Design, Springer;Society for Economic Design, vol. 81(2), pages 139-155, April.
    20. 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 333-340, December.
    21. Marsh, David, 1976. "On Joining Interest Groups: An Empirical Consideration of the Work of Mancur Olson Jr," British Journal of Political Science, Cambridge University Press, vol. 6(3), pages 257-271, July.
    22. Stephan J. Goetz & Anil Rupasingha, 2003. "The Returns on Higher Education: Estimates for the 48 Contiguous States," Economic Development Quarterly, , vol. 17(4), pages 337-351, November.
    23. Jean-Marc Callois & Francis Aubert, 2007. "Towards Indicators of Social Capital for Regional Development Issues: The Case of French Rural Areas," Regional Studies, Taylor & Francis Journals, vol. 41(6), pages 809-821.
    24. James Hines & Hilary Hoynes & Alan Krueger, 2001. "Another Look at Whether a Rising Tide Lifts All Boats," Working Papers 833, Princeton University, Department of Economics, Industrial Relations Section..
    25. Robinson, Lindon J. & Siles, Marcelo E., 1999. "Social capital and household income distributions in the United States: 1980, 1990," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 28(1), pages 43-93.
    26. Martin Paldam, 2000. "Social Capital: One or Many? Definition and Measurement," Journal of Economic Surveys, Wiley Blackwell, vol. 14(5), pages 629-653, December.
    27. repec:fth:prinin:454 is not listed on IDEAS
    28. 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.
    29. Maureen Kilkenny & Laura Nalbarte & Terry Besser, 1999. "Reciprocated community support and small town - small business success," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 11(3), pages 231-246, July.
    30. Rachel M. McCleary & Robert J. Barro, 2006. "Religion and Economy," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 49-72, Spring.
    31. Gray, Virginia & Lowery, David, 1988. "Interest Group Politics and Economic Growth in the U.S. States," American Political Science Review, Cambridge University Press, vol. 82(1), pages 109-131, March.
    32. Heath, W. C. & Waters, M. S. & Watson, J. K., 1995. "Religion and economic welfare: An empirical analysis of state per capita income," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 129-142, June.
    33. Woolcock, Michael & Narayan, Deepa, 2000. "Social Capital: Implications for Development Theory, Research, and Policy," The World Bank Research Observer, World Bank, vol. 15(2), pages 225-249, August.
    34. Robert J. Barro & Rachel McCleary, 2003. "Religion and Economic Growth," NBER Working Papers 9682, National Bureau of Economic Research, Inc.
    35. F. Carson Mencken & Hristopher Bader & Edward Clay Polson, 2006. "Integrating Civil Society and Economic Growth in Appalachia," Growth and Change, Wiley Blackwell, vol. 37(1), pages 107-127, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Beaton Erynn & Hwang Hyunseok, 2017. "Increasing the Size of the Pie: The Impact of Crowding on Nonprofit Sector Resources," Nonprofit Policy Forum, De Gruyter, vol. 8(3), pages 211-235, September.
    2. Pietro Battiston & Simona Gamba, 2020. "When the two ends meet: an experiment on cooperation and social capital," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(3), pages 911-940, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Julie L. Hotchkiss & Anil Rupasingha & Thor Watson, 2022. "In-migration and Dilution of Community Social Capital," International Regional Science Review, , vol. 45(1), pages 36-57, January.
    2. Julie L. Hotchkiss & Anil Rupasingha, 2021. "Individual social capital and migration," Growth and Change, Wiley Blackwell, vol. 52(2), pages 808-837, June.
    3. Shideler, David W. & Kraybill, David S., 2009. "Social capital: An analysis of factors influencing investment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(3), pages 443-455, June.
    4. Antoni, Giacomo Degli, 2007. "Do Social Relations Affect Economic Welfare? A Microeconomic Empirical Analysis," Knowledge, Technology, Human Capital Working Papers 9330, Fondazione Eni Enrico Mattei (FEEM).
    5. Sabatini, Fabio, 2006. "The Empirics of Social Capital and Economic Development: A Critical Perspective," Knowledge, Technology, Human Capital Working Papers 12097, Fondazione Eni Enrico Mattei (FEEM).
    6. Fiorillo, Damiano, 2005. "Capitale Sociale Civile: una nota sui concetti e sulla evidenza empirica macro [Civil Social Capital: a note on the concepts and on the macro empirical evidence]," MPRA Paper 3822, University Library of Munich, Germany.
    7. Dufhues, Thomas & Buchenrieder, Gertrud & Fischer, Isabel, 2006. "Social capital and rural development: literature review and current state of the art [Sozialkapital und ländliche Entwicklung: Literaturüberblick und gegenwärtiger Stand der Forschung]," IAMO Discussion Papers 96, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    8. 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.
    9. Krishna Paudel & Mark Schafer, 2009. "The Environmental Kuznets Curve Under a New Framework: The Role of Social Capital in Water Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(2), pages 265-278, February.
    10. repec:zbw:iamodp:92017 is not listed on IDEAS
    11. Degli Antoni, Giacomo, 2009. "Does satisfaction matter? A microeconomic empirical analysis of the effect of social relations on economic welfare," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 301-309, March.
    12. Marini, Annalisa, 2016. "Cultural Beliefs, Values and Economics: A Survey," MPRA Paper 69747, University Library of Munich, Germany.
    13. Mariano Nieto & Nuria González-Álvarez, 2016. "Social capital effects on the discovery and exploitation of entrepreneurial opportunities," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 507-530, June.
    14. Fabio Sabatini, 2005. "The empirics of social capital and economic development. A critical perspective," Development and Comp Systems 0512015, University Library of Munich, Germany.
    15. Abdulmuttalip Pilatin & Hasan Ayaydın, 2022. "Social Capital Measurement in Turkiye: Creating an Index by Province," Journal of Economy Culture and Society, Istanbul University, Faculty of Economics, vol. 66(66), pages 235-259, December.
    16. Fabio Sabatini, 2005. "The empirics of social capital and economic development: a critical perspective," Development and Comp Systems 0512008, University Library of Munich, Germany.
    17. Kim, Byung-Yeon & Kang, Youngho, 2014. "Social capital and entrepreneurial activity: A pseudo-panel approach," Journal of Economic Behavior & Organization, Elsevier, vol. 97(C), pages 47-60.
    18. Voigt, Stefan, 2022. "Determinant of Social Norms," ILE Working Paper Series 58, University of Hamburg, Institute of Law and Economics.
    19. van Staveren, I.P., 2002. "Social capital :What is in it for feminist economics?," ISS Working Papers - General Series 19126, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    20. 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.
    21. 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, vol. 81(2), pages 139-155.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ecdequ:v:30:y:2016:i:4:p:342-357. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.