Social capital, conflict and welfare

Abstract

This paper analyzes the role of external con ‡ict as a force that can create social capital. Hostile inter-group interactions can help to resolve intra-group social dilemmas but these potential gains must be weighed against the insecurity of hostile relations with an out-group. Our central result is that the presence of an outside threat can induce higher levels of social capital either because a protective aspect of social capital comes into play and/or as a reallocation of investments from private to social capital. Given that social capital is potentially subject to free-riding, the threat, by promoting a greater level of social capital, can be welfare improving. When the threat is severe, social capital and welfare is more likely to fall. This e¤ect of an external threat on social capital is stronger in poor economies. These results can shed light on the sometimes contradicting empirical evidence on the relationship between con ‡ict and social capital.

Peculiarities of urban youth interests’ realization in social conflicts

“…To conceptualize youth conflict, the theoretical developments of recent years are of great interest. Special attention was paid to understanding of social conflict phenomenon as a specific interaction of active social participants [5][6][7][8].…”

Exploring the Relationship between Formal and Informal Institutions, Social Capital, and Entrepreneurial Activity in Developing and Developed Countries

“…However, one of the ways to improve the perception of insecurity is through social capital. Inter-group interactions can help to resolve conflict and increase the welfare of countries [97]. Developing countries are constrained in the ability to invest in all forms of capital; thus, increases in social capital are stimulated to combat the threat of insecurity [97].…”

“…Inter-group interactions can help to resolve conflict and increase the welfare of countries [97]. Developing countries are constrained in the ability to invest in all forms of capital; thus, increases in social capital are stimulated to combat the threat of insecurity [97]. Several forms of social capital, such as social networks and trust, can help individuals to protect themselves from situations of insecurity.…”

Social Ties and the Migration Decision of Temporal Migrant Workers

“…Google Scholar gives more than 3,430,000 results for the search term "social capital". It is surprising that economists have not yet developed any profound and meaningful methodological approach to measure social capital, considering the quantitative traditions of economics (Jennings and Sanchez-Pages, 2017). …”

“…Social capital is a broad field of abstraction; therefore, it can be represented by an extensive variety of proxies (Jennings and Sanchez-Pages, 2017) or theoretical representations (Sequeira and Lopes, 2011). Thus, it can have different impacts on the economy.…”