Politics and Economic Growth

Traditional growth theory viewed economic growth as a resultant of economic factors, in particular capital investment. Development economics implied a broader approach, emphasizing social structure change and human capital. Finally, it was also hinted that political factors could influence the rate of change in the development of the economic system. Testing various theories of economic growth we find that institutional sclerosis is the basic political factor that is related to the process of economic growth. The next step is to analyse how political structures and public policy have an impact on the basic factor in economic growth, viz. investments.     

Special-interest groups and growth

This paper explores empirically the relation between special-interest groups and economic growth. Our analysis exploits new data on the number of groups observed across countries and time, in order to mitigate the identification problems associated with earlier studies. Also in contrast to earlier work, we examine the impact of groups on two sources of growth??capital accumulation and technological change??in addition to the impact of groups on output growth. The findings are consistent with Olson??s (The rise and decline of nations: the political economy of economic growth, stagflation, and social rigidities. New Haven, Yale, 1982) claim that societies with greater numbers of interest groups grow slower, accumulate less capital, and experience reduced productivity growth relative to others.     

Advancing Public Policy for High‐Growth,Female, and Social Entrepreneurs

Findings from a large and growing body of entrepreneurship research offer insights for public policy and public officials and managers. Entrepreneurship policy is defined as measures undertaken to stimulate entrepreneurship in a region or country. The authors discuss generalizations from empirical research on three types of entrepreneurship activity that are vital for inclusive, sustainable economic growth: high‐growth (stressing economic impact), female (inclusive impact), and social (sustainable impact) entrepreneurship. High‐growth firms make up a small share of all entrepreneurial activity but create the majority of economic growth. Compared to their male counterparts, female entrepreneurs are fewer in number (one‐third of all entrepreneurs) and tend to start ventures with lower financial capital and growth expectations. Social entrepreneurs generally have high levels of education and pursue social objectives, often remedying market failures with innovative solutions. For each entrepreneurship type, the authors provide a definition, empirical generalizations, and implications for public policy.     

A new framework for testing the effect of government spending on growth and productivity

Does government spending have a positive or negative effect on economic growth? The results of earlier empirical studies give mixed results. In this study we suggest a new method for testing the effect of different kinds of government expenditure on productivity growth in the private sector. The focus on productivity in the private sector and the use of disaggregated data makes it possible to avoid or mitigate a number of methodological problems. The major conclusions, which are quite robust, are that government transfers, consumption and total outlays have consistently negative effects, while educational expenditure has a positive effect, and government investment has no effect on private productivity growth. The impact is also found to work solely through total factor productivity and not via the marginal productivity of labor and capital.     

Both glue and lubricant: Transnational ethnic social capital as a source of Asia-Pacific subregionalism

Social capital not only forms and functions at the individual, group, and organizational levels, but also permeates and transcends the political and geographic boundaries of nation-states. This paper examines transnational ethnic social networks based on ancestral and kinship ties as a form of social capital that facilitates economic growth and transformation in a transborder subregional context. Transnational ethnic social capital works by gluing multiple economic actors on opposite sides of a border together and by lubricating economic transactions among them. When purposefully mobilized by government policies, transnational ethnic social capital in turn induces more responsive and efficient policy initiatives and implementation. This paper also considers whether ethnic social capital is both a necessary and sufficient condition for successful transnational subregionalism by demonstrating its interaction with certain crucial complementary or contradictory factors.     

Theory to Practice: Policy Recommendations for Fostering Economic Development through Social Capital

Proponents of social capital theory have long argued not only that it is in the best interest of civic life to build social capital but also that social capital is vital for the economic health of communities. This has been confirmed by recent research showing that social capital, especially in its bridging form, is positively associated with job creation at the metropolitan statistical area level. At the same time, social capital is often viewed as something either inherent or absent within a community. This article takes on that assumption by presenting a policy‐based approach to developing social capital. It provides two theoretical explanations for how social capital affects economic development and identifies four lessons for economic development practitioners to use to enhance social capital. These research‐based recommendations for economic development practitioners and policy makers seek to improve the social capital and, consequently, the economic development of their community.     

The utility of bonding social capital

Abstract

In most studies of social capital, bridging social capital is emphasized as ‘good’ for democracy and economic performance. It is rarer to find studies showing that bonding social capital can bring positive effects. Mostly, bonding social capital is either overlooked or depicted as the ‘villain’ that leads to ethnic conflict, intolerant behaviour and poor economic and democratic development. In this article, it is argued that this picture needs to be revised. If we assume that bonding trust is a negative force for development and democracy, we ignore a substantial portion of the political history of the West. Also, new empirical evidence from India suggests that bonding social capital is related to good governance. High levels of bonding trust cannot only facilitate political cooperation. They may also work as a shield against public sector employees who attempt to exploit citizens in a corrupt or clientelistic manner. The conclusion drawn in the article is that the view of social capital as a prime mover with inherent normatively attractive qualities should give way to a perspective where social capital is more properly regarded as an intermediate variable where the way it is combined with, or interacts with, other factors determines outcomes.     

Does social capital increase public support for economic globalisation?

The dominant explanation of public attitudes vis‐à‐vis economic globalisation focuses on re‐distributional implications, with an emphasis on factor endowments and government‐sponsored safety nets (the compensation hypothesis). The empirical implication of these theoretical arguments is that in advanced economies, on which this article focuses, individuals endowed with less human and financial capital will be more likely to experience income losses. Hence they will oppose economic openness unless they are compensated by the government. It is argued here that including social capital in the analysis can fill two gaps in explanations relying on factor endowments and the compensation hypothesis. First, generalised trust – one key aspect of social capital – constitutes a personal endowment alongside human and financial capital. Second, structural social capital – another key aspect of social capital – can be regarded as a nongovernmental social safety net that can compensate for endowment‐related disadvantages of individuals. Both aspects of social capital are expected to contribute, for distinct reasons, to more positive views on economic openness. The empirical testing relies on survey data for two countries: Switzerland and the United States. For both countries, the results indicate that generalised trust has a strong, positive effect on public opinion of economic globalisation, whereas structural social capital has no effect.     

Social Capital and Political Trust in Finland: An Individual-level Assessment

Political trust has in previous studies mainly been associated, either positively or negatively with a set of political variables, such as subjective knowledge of and interest in political issues, political efficacy, national pride, post-materialist values and corruption permissiveness. More recently, it has been debated whether or not indicators of social capital also have an impact on political trust. It has been argued that social capital helps to sustain civic virtues and that lack of it will create democratic problems like political dissatisfaction and declining political participation. While trends in social capital seem stable and high at the aggregate level in Finland, the level of political trust has varied to a much larger degree. In this article, indicators of social capital, political variables and social background variables are set against the Finns' trust in politicians and the parliament as well as their satisfaction with democracy. The analysis shows that social capital, as defined by a set of variables comprised of interpersonal trust and voluntary organisational activism, does not, en bloc, prove to be a powerful predictor of political trust. However, when the social capital items are examined as single factors, interpersonal trust seems to have strong impact on all levels of political trust, while the influence of voluntary organisational activity is less evident.     

父母的社会地位与社会资本——家庭因素对大学生就业意愿的影响

本文根据地位结构观和网络结构观的视角,基于定量的研究方法验证了父母的社会地位与社会资本对大学生求职意愿的影响。主要发现包括,父母的社会地位与社会资本对大学生就业意愿的影响存在显著差异;父母的社会资本对于大学生"从政"意愿影响显著;父母的社会地位对于大学生"入企"意愿影响显著;家庭收入越高,大学生"入企"意愿越高;父亲教育水平越高,家庭社会网络异质性越大,大学生继续深造的意愿越高。     

Economic hardship and social capital in Europe: A comparative analysis of 27 democracies

This article evaluates whether economic hardship affects social capital in Europe. Comparing 27 European countries, it evaluates the impact of personal experiences of economic hardship on engagement in voluntary associations as a cornerstone of civic and democratic life. Empirical analyses of the Eurobarometer data indicate that individual economic hardship has indeed a negative effect on associational volunteering in Europe. However, the result is qualified in two respects. First, it is found that the effect of individual economic hardship is contingent upon education. Second, this effect mostly refers to volunteering for associations providing solidarity goods (Putnam groups). These results have broader implications for understanding how economic hardship shapes the social capital within democratic societies.     

Repairing Civil Society and Experimenting with Power: A Genealogy of Social Capital

In this article my principal aims are to explain why the concept of social capital has proven so popular among policy makers and to develop a critical response to it. In order to do so I bring together macro- and micro-level analyses that focus, on the one hand, on broad structural changes associated with globalisation and, on the other, on specific attempts at increasing social capital within the everyday lives of communities. To develop my macro-level analysis I suggest that the conjunction of economic volatility and demographic mobility that has affected the West since the 1970s has made building social capital an attractive option within a more general experiment with new forms of power. My claim here is that building social capital is among a clutch of recent policy initiatives designed to repair the ideological resources of contemporary liberal states, where it is the tearing as well as the weakening of the social fabric that is at stake. I focus on the British case because building social capital has been explicitly highlighted by the UK government as a vehicle for civic renewal. The micro-analysis proceeds by analysing recent surveys and policies undertaken by Camden Council. Micro refers here to local symptoms of global change; to the micro-powers being developed in response and to the local authorities where social capital policies are being operationalised. I associate these with biopolitical and ideological interventions into the very building blocks of the social. Overall, the genealogy of social capital explores how the concept's discursive significance has shifted as it moves from the democratisation literature into the policy arena and becomes entangled in relations of power. In the latter context it examines the impact of concerns about segregation that justify intrusive policies associated with social capital building.     

Dynamics of governance,gross capital formation,and growth: Evidence from Brazil,Russia, India,China, and South Africa

This study investigates the impact of governance index and gross fixed capital formation on the economic growth of Brazil, Russia, India, China and South Africa (BRICS) using annual data from 2002 to 2019. This study employs Fixed Effect Model, Driscoll and Kraay standard error with fixed effect, Fully Modified Ordinary Least Square, Dynamic Ordinary Least Square (DOLS) and Panel Dumitrescu Hurlin Causality test. The study has divided the variables into two models where model I includes the impact of governance index (jointly) on economic growth while model II examines the impact of governance index on economic growth individually. The findings demonstrate that the governance index, gross fixed capital formation, population, control of corruption, and governance effectiveness have a positive and significant impact on economic growth, whereas regulatory quality showed a significant and negative impact on economic growth. Furthermore, regarding the Panel test, we notice the presence of unidirectional causality among the constituent variables. Therefore, this study suggests that the government should encourage economic development in the BRICS countries and move away from outdated ideas and poor institutional quality in favor of a new comprehensive reform to achieve excellent governance, population growth control, labor law changes, and corruption control.     

Does tenure in office affect regional growth? The role of?public capital productivity

We study the impact of tenure in office on economic performance. We evaluate the relationships between tenure in office and GDP growth, public capital growth, and public capital productivity using data for Spanish regions during the period 1980?C1998. We find that tenure decreases the impact of public capital growth on GDP growth. Our results suggest that tenure affects GDP growth negatively through a decrease in public capital productivity.     

Does public debt matter for human capital development? Evidence from Nigeria

An inquiry into the impact of external and domestic borrowings is considered timely for Nigeria, given the growing public debt profile amid deteriorating human capital development. Using data from 1990 to 2021, the study estimates the effects of domestic and external debts on Nigeria's human capital development. The study employed the fully modified ordinary least squares and canonical cointegration regression as the main estimation technique and the robustness check, respectively. The study discovered that domestic and external debt, economic growth and debt servicing exert positive and significant influence on human capital development in Nigeria while environmental pollution has an inverse and significant impact on human capital development in Nigeria. Premised on the outcomes, policy suggestions aimed at enhancing human capital development in Nigeria have been put forward.     

Social Trust, Social Capital and Perceptions of Immigration

Analyses of social capital and immigration have stressed the negative impact that culturally diverse societies have for the development of social trust. Ethnic heterogeneity, according to these studies, is associated with lower levels of social trust. However, social trust has not been studied as an independent variable in order to explain attitudes towards immigration. This article argues that societies with high levels of social capital facilitate the integration of immigrants because those members with high levels of social trust will tend to have more positive attitudes towards immigration. This hypothesis is empirically tested in a cross-country multi-level empirical analysis for sixteen European countries, drawing on the 2002–3 European Social Survey. This analysis shows that, regardless of the impact of other individual-level variables and contextual variables such as levels of unemployment or percentage of foreign population, those with high social capital do exhibit more positive attitudes towards immigration than the rest of the population.     

The size of human capital externalities: cross-country evidence

Human capital accumulation is usually held to generate positive externalities. However, the empirical evidence on human capital externalities has been scarce and inconclusive. The missing evidence appears to be caused by misleading comparisons between private and social rates of return, by incorrect interpretations of regression coefficients, or by an inappropriate level of aggregation. Our own estimates point to relatively robust empirical evidence for a human capital externality that is about twice as large as a benchmark estimate, which is derived from a standard parameterization of a simple growth model. We ponder a possible causal link from human capital to social capital in the context of alternative views of long run development and argue that the grand transition view (Paldam 2002) is compatible with the existence of a large human capital externality.     

Social Capital and Public Policy – The Current Challenge Facing the Victorian Government

Social capital, since Putnam's 1993 work, has captured the imagination of policy‐makers the world over, and Australia is no exception. In 2005 the Department of Victorian Communities launched its Actions for Community Strengthening policy statement, which draws heavily on social capital theory. This article explores the theoretical underpinnings of the government's policy and critiques its failure to deal adequately with the causal relationship between social capital and its supposed community benefits. The article then seeks to isolate the missing factors through a look at recent research on volunteerism and argues that the institution of collaborative/interactive governance needs to be underpinned by sound socio‐economic reform.     

西部高校毕业生求职难度影响因素的实证研究——基于社会资本、人力资本与物质资本的比较研究及其交互效应

本研究旨在考察社会资本、人力资本与物质资本及其交互变量对高校毕业生求职难度的影响。实证分析发现:社会资本、人力资本与物质资本对高校毕业生职业获得难度存在显著的影响。在搜寻成本模型中,社会资本同人力资本的交互项对高校毕业生在求职过程中的搜寻成本存在正向影响,即社会资本欠缺者,可以通过提升人力资本以降低搜寻成本;在求职结果模型中,社会资本同人力资本的交互项对高校毕业生的最终求职结果存在负向影响,即社会资本欠缺者,可以通过提升人力资本以提高求职成功的概率,从而降低求职难度。     

The myth of social capital in community development

Abstract

This article argues that contemporary interest in social capital by community development theorists, funders, and practitioners is misguided and needs to be thoroughly rethought. It argues that social capital, as understood by Robert Putnam and people influenced by his work, is a fundamentally flawed concept because it fails to understand issues of power in the production of communities and because it is divorced from economic capital. Therefore, community development practice based on this understanding of social capital is, and will continue to be, similarly flawed.

The article further argues that instead of Putnam's understanding of social capital, community development practice would be better served by returning to the way the concept was used by Glenn Loury and Pierre Bourdieu and concludes with a discussion of how these alternative theories of social capital can be realized in community development practice.