Does Social Capital Have an Economic Payoff? A Cross-Country Investigation

Quarterly Journal of Economics, Vol. CXII, Issue 4 (November 1997)

Posted: 24 Jun 1998

See all articles by Stephen Knack

Stephen Knack

World Bank - Development Research Group (DECRG)

Philip Keefer

Inter-American Development Bank

Abstract

This paper presents evidence that "social capital" matters for measurable economic performance, using indicators of trust and civic norms from the World Values Surveys for a sample of 29 market economies. Memberships in formal groups--Putnam's measure of social capital--is not associated with trust or with improved economic performance. We find trust and civic norms are stronger in nations with higher and more equal incomes, with institutions that restrain predatory actions of chief executives, and with better-educated and ethnically homogeneous populations.

JEL Classification: O17

Suggested Citation

Knack, Stephen and Keefer, Philip, Does Social Capital Have an Economic Payoff? A Cross-Country Investigation. Quarterly Journal of Economics, Vol. CXII, Issue 4 (November 1997), Available at SSRN: https://ssrn.com/abstract=88848

Stephen Knack (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-458-9712 (Phone)

HOME PAGE: http://econ.worldbank.org/staff/sknack

Philip Keefer

Inter-American Development Bank ( email )

1300 New York Ave., NW
Washington, DC 20577
United States
202-623-1961 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
2,538
PlumX Metrics