IDEAS home Printed from https://ideas.repec.org/a/bla/asiaec/v29y2015i3p243-264.html
   My bibliography  Save this article

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

Author

Listed:
  • 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.

Suggested Citation

  • 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
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/asej.12057
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Amemiya, Takeshi, 1978. "The Estimation of a Simultaneous Equation Generalized Probit Model," Econometrica, Econometric Society, vol. 46(5), pages 1193-1205, September.
    2. Alberto Alesina & Eliana La Ferrara, 2000. "Participation in Heterogeneous Communities," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 847-904.
    3. Grootaert, Christiaan & Narayan, Deepa, 2004. "Local Institutions, Poverty and Household Welfare in Bolivia," World Development, Elsevier, vol. 32(7), pages 1179-1198, July.
    4. Alvarez, R. Michael & Glasgow, Garrett, 1999. "Two-Stage Estimation of Nonrecursive Choice Models," Political Analysis, Cambridge University Press, vol. 8(2), pages 147-165, December.
    5. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    6. Omar M. G. Keshk, 2003. "CDSIMEQ: A program to implement two-stage probit least squares," Stata Journal, StataCorp LP, vol. 3(2), pages 157-167, June.
    7. Rashid Hassan & Patrick Birungi, 2011. "Social capital and poverty in Uganda," Development Southern Africa, Taylor & Francis Journals, vol. 28(1), pages 19-37.
    8. Narayan, Deepa, 1999. "Bonds and bridges : social and poverty," Policy Research Working Paper Series 2167, The World Bank.
    9. Datt, Gaurav & Jolliffe, Dean, 1999. "Determinants of Poverty in Egypt," FCND briefs 2, International Food Policy Research Institute (IFPRI).
    10. Elder, Sara D. & Zerriffi, Hisham & Le Billon, Philippe, 2012. "Effects of Fair Trade Certification on Social Capital: The Case of Rwandan Coffee Producers," World Development, Elsevier, vol. 40(11), pages 2355-2367.
    11. Woolcock, Michael & Narayan, Deepa, 2000. "Social Capital: Implications for Development Theory, Research, and Policy," The World Bank Research Observer, World Bank, vol. 15(2), pages 225-249, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    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. 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.
    4. 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.
    5. 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.
    6. 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).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ernan Rustiadi & Ahmadriswan Nasution, 2017. "Can Social Capital Investment Reduce Poverty in Rural Indonesia?," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 109-117.
    2. Giuseppina Guagnano & Elisabetta Santarelli & Isabella Santini, 2016. "Can Social Capital Affect Subjective Poverty in Europe? An Empirical Analysis Based on a Generalized Ordered Logit Model," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(2), pages 881-907, September.
    3. Salazar, César A. & Jaime, Mónica M., 2009. "Participación en Organizaciones de la Sociedad Civil en Chile. ¿Una Alternativa para Mejorar el Bienestar Económico? [Participation in Civil Society Organizations in Chile. Is it an Alternative to ," MPRA Paper 12797, University Library of Munich, Germany.
    4. Haddad, Lawrence James & Maluccio, John A., 2002. "Trust, membership in groups, and household welfare," FCND briefs 135, International Food Policy Research Institute (IFPRI).
    5. Stephane, Victor, 2021. "Hiding behind the veil of ashes: Social capital in the wake of natural disasters," World Development, Elsevier, vol. 145(C).
    6. repec:dau:papers:123456789/11437 is not listed on IDEAS
    7. Janssens, Wendy, 2010. "Women's Empowerment and the Creation of Social Capital in Indian Villages," World Development, Elsevier, vol. 38(7), pages 974-988, July.
    8. Zhang, Yanlong & Zhou, Xiaoyu & Lei, Wei, 2017. "Social Capital and Its Contingent Value in Poverty Reduction: Evidence from Western China," World Development, Elsevier, vol. 93(C), pages 350-361.
    9. Jason Enia & Patrick James, 2015. "Regime Type, Peace, and Reciprocal Effects," Social Science Quarterly, Southwestern Social Science Association, vol. 96(2), pages 523-539, June.
    10. Sandra Viviana Polanía Reyes, 2005. "Capital Social E Ingreso De Los Hogares Del Sector Urbano En Colombia," Documentos CEDE 2099, Universidad de los Andes, Facultad de Economía, CEDE.
    11. Aparicio, Sebastian & Audretsch, David & Noguera, Maria & Urbano, David, 2022. "Can female entrepreneurs boost social mobility in developing countries? An institutional analysis," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    12. Ghazala Mansuri, 2004. "Community-Based and -Driven Development: A Critical Review," The World Bank Research Observer, World Bank, vol. 19(1), pages 1-39.
    13. Robert Stimson & John Western & Scott Baum & Yolanda Van Gellecum, 2003. "Measuring Community Strength and Social Capital," ERSA conference papers ersa03p521, European Regional Science Association.
    14. Bambio, Yiriyibin & Bouayad Agha, Salima, 2018. "Land tenure security and investment: Does strength of land right really matter in rural Burkina Faso?," World Development, Elsevier, vol. 111(C), pages 130-147.
    15. World Bank, 2002. "Together We Stand, Divided We Fall : Levels and Determinants of Social Capital in Argentina," World Bank Publications - Reports 15416, The World Bank Group.
    16. Calvo, Thomas & Lavallée, Emmanuelle & Razafindrakoto, Mireille & Roubaud, François, 2020. "Fear Not For Man? Armed conflict and social capital in Mali," Journal of Comparative Economics, Elsevier, vol. 48(2), pages 251-276.
    17. Fabio Sabatini, 2004. "Che cosa è il capitale sociale," Development and Comp Systems 0404003, University Library of Munich, Germany.
    18. Roberto Antonietti, 2016. "From outsourcing to productivity, passing through training: microeconometric evidence from Italy," Industry and Innovation, Taylor & Francis Journals, vol. 23(5), pages 407-425, July.
    19. Damiano Fiorillo, 2016. "Workers’ health and social relations in Italy," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 43(5), pages 835-862, October.
    20. Franz Hackl & Martin Halla & Gerald J. Pruckner, 2007. "Volunteering and Income – The Fallacy of the Good Samaritan?," Kyklos, Wiley Blackwell, vol. 60(1), pages 77-104, February.
    21. Haroon Sseguya & Robert E. Mazur & Cornelia B. Flora, 2018. "Social capital dimensions in household food security interventions: implications for rural Uganda," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 35(1), pages 117-129, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:asiaec:v:29:y:2015:i:3:p:243-264. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/eaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.