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Social capital and regional social infrastructure investment: Evidence from New Zealand

Author

Listed:
  • Arthur Grimes

    () (Motu Economic and Public Policy Research)

  • Matthew Roskruge

    () (University of Waikato)

  • Philip McCann

    () (Department of Economics, University of Waikato and Faculty of Spatial Sciences, University of Groningen)

  • Jacques Poot

    () (University of Waikato)

Abstract

In this paper we link unique data on local social infrastructure expenditure with micro-level individual survey data of self-reported social capital measures of trust and participation in community activities. We use both probit and tobit models to estimate the impact of social infrastructure expenditure on social capital formation. Our results imply that the links between social capital, demographic characteristics, human capital, geography and public social infrastructure investment are rather more subtle and complex than much of the literature implies. While we find evidence in support of many of the hypothesized relationships discussed in the social capital literature, our results also suggest that the impact of public social infrastructure investment is affected by both selection effects and free rider processes.

Suggested Citation

  • Arthur Grimes & Matthew Roskruge & Philip McCann & Jacques Poot, 2010. "Social capital and regional social infrastructure investment: Evidence from New Zealand," Working Papers 10_03, Motu Economic and Public Policy Research.
  • Handle: RePEc:mtu:wpaper:10_03
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    File URL: http://motu-www.motu.org.nz/wpapers/10_03.pdf
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    Cited by:

    1. Matthew James Roskruge & Arthur Grimes & Philip McCann & Jacques Poot, 2011. "Housing and Social Capital in New Zealand," ERSA conference papers ersa10p784, European Regional Science Association.

    More about this item

    Keywords

    Social capital; trust; participation; public infrastructure; demography; geography;

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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