Bonding and Bridging Social Capital and Economic Growth

CentER Discussion Paper Series No. 2009-27

39 Pages Posted: 13 May 2009

See all articles by Sjoerd Beugelsdijk

Sjoerd Beugelsdijk

University of Groningen

Sjak Smulders

Tilburg University - Tilburg University School of Economics and Management; University of Calgary - Department of Economics

Date Written: February 28, 2009

Abstract

In this paper we develop a formal model of economic growth and two types of social capital. Following extant literature, we model social capital as participation in two types of social networks: first, closed networks of family and friends, and, second, open networks that bridge different communities. Higher levels of social capital may crowd out economic growth through a reduction of working time. At the same time, participation in intercommunity networks reduces incentives for rent seeking and cheating, promoting economic growth. We test our hypotheses in a sample of European regions using unique data from the European Value Studies (EVS). Our findings show that it is important to distinguish between the nature of the social interaction.

Keywords: social capital, economic growth, Europe, regions

JEL Classification: O40, R11, Z13

Suggested Citation

Beugelsdijk, Sjoerd and Smulders, Jacobus (Sjak) A., Bonding and Bridging Social Capital and Economic Growth (February 28, 2009). CentER Discussion Paper Series No. 2009-27. Available at SSRN: https://ssrn.com/abstract=1402697 or http://dx.doi.org/10.2139/ssrn.1402697

Sjoerd Beugelsdijk (Contact Author)

University of Groningen ( email )

P.O. Box 800
9700 AH Groningen, Groningen 9700 AV
Netherlands

Jacobus (Sjak) A. Smulders

Tilburg University - Tilburg University School of Economics and Management ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 2920 (Phone)
+31 13 466 3042 (Fax)

HOME PAGE: http://www.uvt.nl/webwijs/english/show.html?anr=801585&lang=en

University of Calgary - Department of Economics ( email )

2500 University Drive, NW
Calgary, Alberta T2N 1N4
Canada

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