Social capital, growth, and poverty: a survey of cross-country evidence

Knack, Stephen

doi:10.1017/cbo9780511492600.004

“…Social capital is also referred to as stocks of social trust, norms and networks that people can draw upon to solve their common problems (Adler & Kazanowski, 1998). Knack (1999) defines social capital from the governmental and the civic point of view. Knack defines social capital as the features of both government and civil society that facilitate collective action for the mutual benefit of a group, at individual households and the nation at large.…”

Section: Literature Reviewmentioning

confidence: 99%

An Empirical Analysis of Social Capital and Enterprise Performance in Tanzania: The Case of Women Owned Businesses

Tundui¹,

Tundui²

2013

International Journal of Developing Societies

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This paper explores the impact of social capital on the performance of women owned microcredit supported enterprises. The paper uses data from a random sample of 429 women business owners who had accessed microloans in Morogoro and Iringa municipalities. An ordered probit was used to determine the impact of social capital on enterprise performance. Results have shown that certainly, social capital plays a significant role in the performance of women owned businesses. Specifically, results have demonstrated that business owners who received business support and advice from informal networks were more likely to experience profits increase in their enterprises than otherwise. Results have also shown that overall, the impact of bridging social capital on enterprise performance was more important than the bonding social capital. Our results suggest that for women business owners to enhance performance of their enterprises they need not only financial capital and human capital (business training and management skills) but also they need to develop, promote and use appropriate forms of social capital. In particular, women business owners could be facilitated to establish social capital beyond their immediate neighbourhoods, such as joining heterogeneous networks both formal and informal. Efforts could also include strengthening women's associations with a view to widening their sources of resources and information for them to unleash their business growth potentials.

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“…The acquired reputation facilitates their access to external resources, but may also replace their lack of experience and track record (Stuart et al, 1999). Social capital also plays a significant role in enterprise productivity especially in environments characterised by information asymmetry, barriers to credit access or credit markets, poor enforcement of property rights and business contracts (Biggs & Shah, 2006;Knack, 1999). Social capital also provides an opportunity to access latest technological innovations (Davidsson &Honig, 2003).…”

Section: The Role Of Social Capitalmentioning

confidence: 99%

Bishop Abel Muzorewa’s Theology and the Struggle for Zimbabwe, 1965-1980: A Re-Consideration

Maposa¹

2013

International Journal of Developing Societies

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This paper explores the impact of social capital on the performance of women owned microcredit supported enterprises. The paper uses data from a random sample of 429 women business owners who had accessed microloans in Morogoro and Iringa municipalities. An ordered probit was used to determine the impact of social capital on enterprise performance. Results have shown that certainly, social capital plays a significant role in the performance of women owned businesses. Specifically, results have demonstrated that business owners who received business support and advice from informal networks were more likely to experience profits increase in their enterprises than otherwise. Results have also shown that overall, the impact of bridging social capital on enterprise performance was more important than the bonding social capital. Our results suggest that for women business owners to enhance performance of their enterprises they need not only financial capital and human capital (business training and management skills) but also they need to develop, promote and use appropriate forms of social capital. In particular, women business owners could be facilitated to establish social capital beyond their immediate neighbourhoods, such as joining heterogeneous networks both formal and informal. Efforts could also include strengthening women's associations with a view to widening their sources of resources and information for them to unleash their business growth potentials.

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“…Appendix Table A1 reproduces the key definitions of social capital as summarised by Durlauf and Fafchamps, with some additions. Note that Knack (2002) splits social capital into two components: government and civil, a point that is discussed more fully below.…”

Section: Social Capital: Is It the Same Thing As Informal Institutions?mentioning

confidence: 99%

“…Before ending this section on defining social capital, it should be noted that Knack (2002) splits social capital into government and civil social capital. In a definition not included in Table A1, Grafton and Knowles (2004) distinguish between civic social capital and public institutional social capital, with the latter being proxied by measures of corruption and democracy.…”

Section: Social Capital: Is It the Same Thing As Informal Institutions?mentioning

confidence: 99%

Is Social Capital Part of the Institutions Continuum and is it a Deep Determinant of Development?

Knowles

¹

2007

Advancing Development

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There is a growing literature which analyses, using cross-country data, whether institutions or geography is the most important deep determinant of economic development. The empirical proxies for institutions used in this literature focus on the definition of institutions, formal and informal. This study argues that the concept of informal institutions is similar to social capital. However, the social capital and 'institutions as a deep determinant' literatures rarely acknowledge the existence of the other. It is argued that social capital meets the criteria for being a deep determinant of development and that both the cross-country literature on social capital, and the deep determinants of development literature, could be enriched by empirically modelling social capital as a deep determinant of development.

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Social capital, growth, and poverty: a survey of cross-country evidence

Cited by 125 publications

References 62 publications

An Empirical Analysis of Social Capital and Enterprise Performance in Tanzania: The Case of Women Owned Businesses

An Empirical Analysis of Social Capital and Enterprise Performance in Tanzania: The Case of Women Owned Businesses

Bishop Abel Muzorewa’s Theology and the Struggle for Zimbabwe, 1965-1980: A Re-Consideration

Is Social Capital Part of the Institutions Continuum and is it a Deep Determinant of Development?

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