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Can Social Capital Reduce Poverty? A Study of Rural Households in Eastern Bhutan

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  • Galey Tenzin
  • Kozo Otsuka
  • Kaoru Natsuda

Abstract

type="main"> This study examines the impact of social capital on the poverty of rural households in eastern Bhutan, with a particular focus on households' participation in community groups, which can be a proxy for the structural aspect of social capital. Using a two-stage probit least squares simultaneous equation model, the present study reveals that social capital positively contributes to poverty reduction in Bhutan. This study also finds that non-farm income is important for poverty reduction in rural areas. Our results, however, indicate that poor households in remote areas are discouraged from participating in community groups.

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  • Galey Tenzin & Kozo Otsuka & Kaoru Natsuda, 2015. "Can Social Capital Reduce Poverty? A Study of Rural Households in Eastern Bhutan," Asian Economic Journal, East Asian Economic Association, vol. 29(3), pages 243-264, September.
    • Handle: RePEc:bla:asiaec:v:29:y:2015:i:3:p:243-264
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    1. Sayed Nasrat & S Fakhrudin Sadat & Hidayatullah Sapi, 2018. "Rural Technology Park – A New Inclusive Rural Development Concept for the Reduction of Poverty in Rural Afghanistan," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 250-266, June.
    2. Thang T. Vo, 2018. "Social capital and household vulnerability: New evidence from rural Vienam," WIDER Working Paper Series wp-2018-167, World Institute for Development Economic Research (UNU-WIDER).
    3. Thang Vo, 2018. "Social capital and household vulnerability: New evidence from rural Vietnam," WIDER Working Paper Series 167, World Institute for Development Economic Research (UNU-WIDER).
    4. Haiping Xu & Chuqiao Zhang & Yawen Huang, 2023. "Social trust, social capital, and subjective well-being of rural residents: micro-empirical evidence based on the Chinese General Social Survey (CGSS)," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
    5. Dorji Lethro & Takahiro Akita, 2019. "The roles of education in expenditure inequality in Bhutan: an analysis in an urban–rural context," Asia-Pacific Journal of Regional Science, Springer, vol. 3(2), pages 465-485, June.
    6. Md. Shahidul Islam & Khurshed Alam, 2018. "Does social capital reduce poverty? A cross-sectional study of rural household in Bangladesh," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 45(11), pages 1515-1532, August.

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