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Does social capital create trust? Evidence from a community of entrepreneurs

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Fabio Sabatini ()

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Abstract

Which kind of social capital fosters the diffusion of development-oriented trust? This paper carries out an empirical investigation into the causal relationships connecting four types of social capital (i.e. bonding, bridging, linking, and corporate), and different forms of trust (knowledge-based trust, social trust, trust towards public services and political institutions), in a community of entrepreneurs located in the Italian industrial district of the Tuscia. Our results suggest that the main factors fostering the diffusion of social trust among entrepreneurs are the perception that the local community is a safe place, and the establishment of corporate ties through professional associations. Trust in people is positively and significantly correlated also to higher levels of satisfaction and confidence in public services. Participation in voluntary organizations does not appear to increase trust in people. Rather, we find evidence of the other way round: interpersonal trust seems to encourage civic engagement

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Paper provided by Department of Economics, University of Siena in its series Department of Economics University of Siena with number 552.

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Date of creation: Jan 2009
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Handle: RePEc:usi:wpaper:552

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Related research
Keywords: Trust; Social capital; Safety; Professional associations; Entrepreneurship; Corporate ties; Group and Interpersonal Processes; Social Perception and Cognition;

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Find related papers by JEL classification:
A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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  1. Antoci, Angelo & Sacco, Pier Luigi & Vanin, Paolo, 2007. "Social capital accumulation and the evolution of social participation," The Journal of Socio-Economics, Elsevier, vol. 36(1), pages 128-143, February. [Downloadable!] (restricted)
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  2. Fabio Sabatini, 2008. "Social Capital and the Quality of Economic Development," Kyklos, Blackwell Publishing, vol. 61(3), pages 466-499, 08. [Downloadable!] (restricted)
  3. repec:att:wimass:19199929 is not listed on IDEAS
  4. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1251-88, November.
  5. Sabatini Fabio, 2007. "The empirics of social capital and economic development: A critical perspective," wp.comunite 0031, Department of Communication, University of Teramo. [Downloadable!]
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  6. Fabio, Sabatini, 2005. "The empirics of social capital and economic development: a critical perspective," MPRA Paper 2366, University Library of Munich, Germany, revised Mar 2007. [Downloadable!]
    Other versions:
  7. Coates, Dennis & Heckelman, Jac C, 2003. " Interest Groups and Investment: A Further Test of the Olson Hypothesis," Public Choice, Springer, vol. 117(3-4), pages 333-40, December. [Downloadable!] (restricted)
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This page was last updated on 2009-11-3.

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