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A multi-dimensional perspective on social capital and economic development: an exploratory analysis

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  • Soogwan Doh

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  • Connie McNeely

    ()

Abstract

While various types of capital have been identified and studied as drivers of economic development, recent arguments surrounding social capital in particular have led to calls for greater attention to its role in economic development within a country. Thus, we examine social capital relative to its impact on economic development at the country level. We employ a generalized social capital index (based on measures of trust, associational activities, and civic norms) to test hypotheses suggesting a positive relationship between social capital and economic development, while also considering the impact of social capital on entrepreneurship and on human capital as intermediary effects on economic development. In general, we examine the relationship between core constructs of social capital and economic development within and across 47 selected countries. Findings reveal strong support for the hypothesized relationships, with important implications for policy direction and future research. Copyright Springer-Verlag 2012

Suggested Citation

  • Soogwan Doh & Connie McNeely, 2012. "A multi-dimensional perspective on social capital and economic development: an exploratory analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(3), pages 821-843, December.
  • Handle: RePEc:spr:anresc:v:49:y:2012:i:3:p:821-843
    DOI: 10.1007/s00168-011-0449-1
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    References listed on IDEAS

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    Keywords

    D71; O1; O47; E24; L26; O3;

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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