A Theoretical Approach of the Concept of Social Capital in Supporting Economic Performance (original) (raw)

Can Social Capital Be the New Dynamics of Economic Development?

Annales. Etyka w Życiu Gospodarczym, 2016

Besides other capital types, social capital is such a kind of capital, which is revealed by the confidence level of the society and certain financial facts. This study questions whether the social capital could be new dynamics for the developments of the countries along with other types of capitals (real capital and human capital). According to the recent research it has been concluded that the social capital has some positive effects to decrease the asymmetric information; to gain trust, information sharing and competitive power; to increase the participation in political life and social organizations; to fix the distribution of income; and to accelerate the economic growth. As a result, considering the fact that the countries with high confidence level have high humanitarian growth and high income per capita, it has been concluded that social capital may create new dynamics of economic development.

Social Capital Impact on Economic Development (A Theoretical Perspective)

ijbmer.com

The concept of social capital as an important determinant of economic development is attracting increasing attention among development economists. Social capital in every sense is one of the fundamental factors of development. No country can achieve sustainable economic expansion without substantial investment in human capital. Social capital is an instantiated informal norm that promotes cooperation between individuals Social capital enriches people's understanding of themselves and world. Social capital is important to the coefficient functioning of modern economies Macro-level social capital comprises different aspects of institutional quality and is closely related to the income distribution and social cohesion. It improves the quality of their lives and leads to broad social benefits to individuals and society. Social capital raises people's productivity, creativity and promotes entrepreneurship and technological advances. In addition it plays a very crucial role in securing economic and social progress to improving income distribution.

Social Capital as an Elusive Factor of Socio-Economic Development

Journal of Leadership, Accountability and Ethics, 2012

The modern economy is characterized by an intense interest in non-economic factors (e. g. cultural, institutional) in explaining economic phenomena. This is reflected in an increasing interest of economists in the concept of social capital. The article presents the role of social capital in economic development and in regional development. It shows the difficulties of measuring social capital, among others, with the problem of data aggregation or with the necessity to take into account the context. The difficulties these cause suggest that social capital still remains an elusive capital.

The Role of Social Capital in Economic Development

The diverse emerging literature on the importance of Social Capital as an economic concept brings forth the usefulness of developing this as a resource for economic growth. This paper incorporates various arguments presented in favor of Social Capital and suggests that economic development can be facilitated to a large extent by paying more attention to this concept. This is done by examining Social Capital in relation with various economic areas, including Human Capital, public policy, citizen-state relationships and management of institutions. Both micro and macro level implications in this subject area are examined. It is found that accumulation of Social Capital indeed assists in economic development; however, its effects are minimized due to the lack of attention it receives.

Social capital in economic development: how social relations matter

The most general definition of social capital is that “relations matter”. If this were the only insight from the burgeoning literature on the topic, it does not bring much news to social economists. To the contrary, the insight that social relations matter to the economy has been the very foundation of social economics for more than half a century–long before the discovery of the social capital concept by economists.

Social Capital and Economic Development: Possible Links and the Implications for Economic Policy

2004

This research project was carried out with three principle objectives. First, I provide a primer investigation of what social capital means and examine its possible relevance in the discipline of economics and I highlight some of the numerous conceptual debates surrounding the theory. Secondly, I shed light on the historical progression and time line for the implications of social capital. That is, where we were in the past, where we are at the current time and where we (as economists) are possibly heading with this into the future. Lastly, I highlight some of the major challenges in applying an empirical methodology to social capital, without having to carry out any new empirical research work-an intensive and oftentimes extensive and time consuming undertaking-which is not likely to add much to this project. This report is a primer on social capital and its links to economics and development policy. The attempt is to simply and effectively isolate issues of past debate and the current major successes and failures in the attempt to integrate social capital into meaningful policy. More importantly, this report explores possible answers to the question: Does social capital have a contribution to make in the current efforts at formulating economic policies to address poverty?

The Social Capital as an Element of Development

The objective of this paper is to analyze the composition and level of consolidation of Social Capital quantified through the Trust and Solidarity, the Collective Action, and the connection and the Social Inclusion in the town of Navojoa. Through the Analysis of Principal Components were identified the principal variables which form the Social Capital. After determined the components, it was adapted to the local context the questionnaire that develop the World Bank. Subsequently was made and validated a structural model to test the causal relations proposals between the variables object to analysis. The results obtained evidenced that the Social Capital is vulnerable and it have a poor develop, which encourage the increase of high rates of violence, poverty, job insecurity and marginalization, that obstruct the regional develop. The governmental implications are design social policies that allow a pacific coexistence and encourage the economic develop and social of the region.

Social Capital and Economic Development

2000

Social capital is a topical concept in economic development. The claim is that regional differences in economic success can be explained in terms of differences in various social variables, called social capital. This paper attempts to delineate the mechanisms that link social capital and economic development. I show that social capital can produce two kinds of trust, both of which can reduce transaction costs. It is important to keep these two sources of trust apart, since development policies utilizing social capital have different impacts, depending on the basis of trust.

The social capital as basis for development of the human capital

Scientific Bulletin Economic Sciences, 2011

The strong side of the "theory about the human capital" is that it redefines the labour of hired workers in the developed countries. The workers become capitalists in the sense that they acquire a lot of knowledge and skills which have an economic preciousness. As an outcome from the "capitalisation" of acquired knowledge and skills, one will not meet on the labour market "hired workers and capitalist undertakers, but two autonomous groups of "capitalists", each of them realising an undertaking behaviour in the market relations. We are witnesses of crash in ideas and paradigms about the world, the world's development, and the tendencies which determine this development. Is there a relation between the economic growth and social development today? Do the three generators of development work-the technologies, institutions and values? Where is the place of people in the process as individuals, as groups, as teams, as society in general? Here are some questions we will be looking an answer for, in our study.