An Analysis of the Share of Social Capital in Iran’s Economic Growth During the Years 2002-2019

Document Type : Research/Original/Regular

Authors

1 Assistant Professor, Department of Economics, Faculty of Humanities, Ayatollah Ozma Borujerdi University, Lorestan, Iran

2 Master’s Holder in Economics, Lorestan, Iran

Abstract

The measurement and calculation of the share of social capital in economic growth is of great importance. The study at hand used Owen’s value approach to calculate the share of social capital in Iran’s economic growth during the years 2002-2019. This study was applied in terms of purpose and experimental in terms of method. The obtained results showed that on average, the share of physical capital, human capital, work force, and social capital in the log of GDP was 30.78, 28.84, 21.47, and 18.76 percent, respectively. Thus, it was found that compared to other variables, social capital has the smallest share in Iran’s economic growth. The examination of the social capital factors indicated that on average, the share of good governance, social participation, and trust in log of GDP was 6.15, 10.37, and 2.39 percent, respectively. Therefore, it was found that among social capital indices, the largest and smallest shares in log of GDP belonged to social participants and trust, respectively. Moreover, it was revealed that the insignificant role of social capital in Iran’s economic growth derives from various reasons, including the weakness of informal institutions, inability to fight against corruption, weak rules and regulations, high levels of distrust, lack of confidence, and lack of cooperation and teamwork spirit.

Keywords

Main Subjects

References

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Social Capital Management
Volume 8, Issue 4
Winter
January 2022
Pages 633-663

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