Social capital, economic growth and regional development

Abstract

Iyer S., Kitson M. and Toh B. (2005) Social capital, economic growth and regional development, Regional Studies 39 , 1015-1040. This paper examines the relationships between social capital, economic performance and regional development, and it stresses the complexity and variability across space of such relationships. In contrast to the conventional macroeconomic approach of using indicators of social capital in formal growth models, what is required is a more nuanced analysis that evaluates the impact of social capital by region. To support this argument, the paper examines social capital data from the Social Capital Community Benchmark Survey 2000, which provides social capital data for more than 24�000 individuals living in 40 communities, grouped into nine regions, in the USA. These data show remarkable diversity of social capital by region. Multivariate analysis is used to examine the impact of economic and social determinants of social capital and shows that education is important for nearly all indicators of social capital, and that ethnic diversity is associated with lower levels of social capital. Furthermore, analysis indicates the need to distinguish between local and non-local forms of social capital. The paper concludes by suggesting that future analysis of social capital will benefit from a more region-specific approach towards examining its development and impacts.Social capital, Regional growth, Ethnic diversity, USA, Valeur de l'interaction sociale, Croissance regionale, Diversite ethnique, Etats-Unis, Sozialkapital, regionales Wachstum, ethnische Vielfalt, USA, Capital social, Desarrollo regional, Diversidad etnica, Estados Unidos, JEL classifications: O51, R11, Z13,

Social Capital and Economic Well-Being in Germany's Regions: An Exploratory Spatial Analysis

“…They concluded that disaggregation at regional levels reveals information that remains elusive at the national level (Fazio, Lavecchia 2013, p. 315). In line with this conclusion, Iyer et al (2005) suggested a shift towards a more region-specific approach to social capital.…”

A Network-based view of regional growth

“…This is significantly different from the type of social or relational capital stemming from the social norms and customs present in a particular region (Capello and Faggian, 2005;Tura and Harmaakorpi, 2005). These social norms and customs are embedded in the social environment, and the trustworthiness of any environment is often tacit and specific to each community (Iyer et al, 2005;Lorenzen, 2007). However, as Putnam finds, although communities, especially business communities, are now more networked than ever, they actually possess less social capital, and 'in some ways social capital may be economically counterproductive' (Putnam, 2000, p. 322).…”

“…Some scholars have pointed to networks endowed with social capital -in the form of interpersonal relationships -as a key lubricator of knowledge spillovers (Iyer et al, 2005;Tura and Harmaakorpi, 2005;Hauser et al, 2007;Lorenzen, 2007;Walter et al, 2007;Tappeiner et al, 2008;Cantner et al, 2009;Vorley et al, 2012). In its fundamental form, social capital concerns the capacity and capability of individuals to mobilise their network to enhance personal returns usually within place-bound environments.…”

Entrepreneurship, innovation and regional growth: a network theory

“…Some scholars have pointed to networks endowed with social capital -in the form of interpersonal relationships -as a key lubricator of knowledge spillovers (Iyer et al 2005;Tura and Harmaakorpi 2005;Hauser et al 2007;Lorenzen 2007;Walter et al 2007;Tappeiner et al 2008;Cantner et al 2010;Vorley et al 2012). However, although social capital may explain a degree of knowledge flow within a particular region, it does not necessarily account for the large proportion of the flow of economically beneficial knowledge (Bathelt et al 2004;Weterings and Ponds 2009;Huber 2012).…”