Social capital as an economic force, unveiling the underlying mechanisms of growth, trust and prosperity
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Keywords
Social capital ; Endogenous growth ; Meta-analysis ; Access to finance ; Crime ; Voluntary work ; Income ; TrustAbstract
The analysis presented in this comprehensive study delves into the intricate relationships between social capital, crime behavior by the perception of being secure, financial access, and household income, offering a unified perspective on the societal and economic implications of social cohesion and trust. By synthesizing data from the European Social Survey (2002–2024) and various scholarly meta-analyses, the findings reveal the multifaceted role of social capital as both a predictor and determinant of economic well-being.The first subchapter investigates the impact of Social Capital on Crime Behavior by the perception of being secure. The study highlights that decline of social capital—manifested through weaker social networks and reduced institutional trust—is strongly associated with higher rates of crime and decreased subjective perception of safety. This causal relationship is further validated through instrumental variable analysis, where individuals' interest in politics serves as an instrument for social capital. The research identifies specific dimensions of social capital, such as the absence of close networks and low trust levels, as critical drivers of criminal behavior and subjective sense of safety. These insights underscore the importance of enhancing social capital by fostering robust community ties and increasing trust in institutions as a strategy for mitigating crime and promoting a safer society.The second subchapter investigates the Social Capital and the Access to Finance. In a systematic meta-analysis of 41 scholarly articles, encompassing 538 estimates, the research evaluates the influence of social capital on financial access. While an apparent publication bias exists fostering positive associations, adjusted statistical analyses reveal that the overall effect of social capital on financial access is modest and economically insignificant. Variability in the reported findings is attributed to differences in methodological frameworks, regional contexts, and publication characteristics. These results suggest that while social capital may play a role in accessing financial resources, its impact is contingent on specific contextual and methodological factors.The third subchapter investigates the impact of Voluntary Work and Social Capital, on Household Income. Using data from rounds 10 and 11 of the European Social Survey, the study explores the interplay between voluntary work as a key dimension of social capital and household income. The findings demonstrate that active participation in voluntary activities significantly correlates with higher household income levels. Instrumental variable analysis, employing interest in politics as an instrument, reinforces the causal nature of this relationship. Framing voluntary work within the theory of endogenous growth, the research posits that social capital not only benefits individuals and their families economically but also contributes to broader societal well-being.Collectively, these findings illuminate the interconnected nature of social capital's effects across various domains. By bridging the gaps between crime prevention, financial accessibility, and economic growth, the research underscores the transformative potential of fostering social cohesion and trust. Policies that promote social capital by voluntary work and strengthen community networks can yield multidimensional benefits, reducing crime rates, enhancing financial accessibility, and improving household income levels. Furthermore, these strategies align with endogenous growth theory, emphasizing the critical role of internal economic factors, such as human capital and social cohesion, in fostering sustainable development.Ultimately, this study reinforces the notion that social capital serves as a fundamental pillar of societal progress, which improves various aspects of economic and social. Strengthening trust, nurturing networks, and encouraging active community participation emerge as pivotal tools in enhancing both economic and social well-being, paving the way for a fairer and more prosperous future.
Department
Σχολή Οικονομικών, Επιχειρηματικών και Διεθνών Σπουδών. Τμήμα Οικονομικής ΕπιστήμηςNumber of pages
268Language
EnglishCollections
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Αναφορά Δημιουργού-Μη Εμπορική Χρήση-Όχι Παράγωγα Έργα 3.0 Ελλάδα
Αναφορά Δημιουργού-Μη Εμπορική Χρήση-Όχι Παράγωγα Έργα 3.0 Ελλάδα