Trust, Social Capital and Economic Development∗†
نویسنده
چکیده
Many argue that elements of a society’s norms, culture or social capital are central to understanding its development. However, these notions have been difficult to capture in economic models. Here we explore a possible role for ‘trustworthiness’ as corresponding to social capital. Individuals are trustworthy when they perform in accordance with promises, even if this does not maximize their payoffs. The usual focus on incentive structures in motivating behaviour plays no role here. Instead, we emphasize more deep-seated modes of behaviour and consider trustworthy agents being socialized to act as they do. To model this socialization, we borrow from a process of preference evolution pioneered by Bisin and Verdier (2001). The model developed endogenously accounts for social capital and explores its role in the process of economic development. It captures in a simple, formal way the interaction between social capital and the economy’s productive processes. The results obtained caution against rapid reform and provide an explanation for why late developing countries may not easily be able to transplant the modes of production that have proved useful in the West. JEL: O1, O3, O4, Z1 ∗Acknowledgements: We thank George Akerlof, Alberto Bisin, Lans Bovenberg, Harald Uhlig, Andrea Prat, seminar participants at ANU, Melbourne, Sydney, Queen’s, Bocconi, Tilburg, University College London, LICOS center Leuven, the NEUDC meetings (Cornell), the EEA meetings (Stockholm), the CIAR and CIRPEE development conference (Montreal) for helpful comments and suggestions. We are especially grateful to Siwan Anderson, Jan Boone, Ashok Kotwal, Huw Lloyd-Ellis, the editor, and two anonymous referees for extensive comments. Remaining errors are ours alone. †Email addresses: Francois: [email protected]; Zabojnik: [email protected] 0
منابع مشابه
Interacted and Dynamic Effects between Social Capital and Economic Development: the Case of Iran (1989-2006)
In this paper, a version of the Vector Auto Regression (VAR) model has been used to investigate the interacted and dynamic effects between social capital and economic development in Iran during the period 1987-2006. To this purpose, variables of human capital, health and income distribution have been considered as the proxies of economic development. In addition, the volume of risky bank chequ...
متن کاملسرمایه اجتماعی و عملکرد اقتصادی: بررسی مقایسهای استانهای ایران
The purpose of the present article is to examine the relationship between social capital and the economic performance of Iran analytically and experimentally. The theory of this study is. Besides the other factors like physical and human capital, social capital (taken as mutual trust among people and economic units) is an important factor that could help define the differences in the economic g...
متن کاملA Survey on Relationship between Social Capital and Urban Development, Case Study of Ghaemshahr
Essential to development advance in any society, having social support that social capital is one of those and include components: "social trust", "social cohesion", "social participation", "social consciousness", and "religiosity". The aim of this research is on relationship between social capital and urban development variable. Statistica...
متن کاملEffects evaluation of social capital on rural poverty reduction Case: Ghobchagh village in Miyandoab County
Poverty as a socio-economic issue has unsuitable out ones in rural societies. It is said to be an abstract in the way to rural sustainable development. The aim of this paper is to evaluate the effects of social capital on rural poverty reduction in rural areas of Ghobchagh village in Miyandoab County. The method of this research is analytical-description. Data collection has performed through d...
متن کاملInvestigating the Role of Participatory Institutions on the Local Development (Case of Study: Islamic Council in the Dehong Village)
In This study we tried to examine the role of participatory institutions in the local development by measuring the effect of social capital on the promotion of performance. Our research sample was Dehong's (a village in south of Iran) Islamic Council. On the other hand it tries to evaluate effect of social capital on local development. The result of the study showed that some of social capital ...
متن کاملAnalysis of social capital of rural micro-credit fund Case: Bstaq village in Sarayan County
Introduction Sustainable development is actually a process towards sustainability. It can be conceptually classified within other concepts such as social reorganization, transition to a better future, conserving the quality of the environment, people empowerment, creating new capacities, and respecting indigenous knowledge and information. All these concepts are considered to be the main axi...
متن کامل