A longitudinal, National Study on the Effect of Social Capital on Industrial Development

Salar, Ali; Akbari, Hossein; Seddigh Ouraee, Gholamreza

doi:10.22059/jscm.2019.275706.1783

A longitudinal, National Study on the Effect of Social Capital on Industrial Development

Document Type : Research/Original/Regular

Authors

¹ Ph.D., Faculty of Letters and Humanities, Ferdowsi University of Mashhad, Mashhad, Iran

² Assistant Professor, Department of Sociology, Faculty of Letters and Humanities, Ferdowsi University of Mashhad, Mashhad, Iran

10.22059/jscm.2019.275706.1783

Abstract

The purpose of this research is to study mechanisms of the effect of social capital on the level of industrial development in 139 societies over the period of 1990 to 2014. Due to some missing data for some societies and in some years, the data structure is unbalanced panel data structure and due to the importance of causal mechanisms, data analysis has been conducted using path analysis method. The results showed that the most important mechanism of the effect of social capital on the level of industrial development of societies is the institutional quality mechanism; high level of social capital in societies improves the institutional quality structure of societies and thus has a positive effect on the level of industrial development. The second casual mechanism is human capital, according to which increasing the level of social capital in societies leads to more investment of households on education and as a result, an increase in the level of human capital in society has a positive effect on the level of industrial development. Finally, the results showed that social mechanisms have a greater effect on industrial development compared to economic mechanisms.

Keywords

References

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