IDEAS home Printed from https://ideas.repec.org/p/mtu/wpaper/10_03.html
   My bibliography  Save this paper

Social capital and regional social infrastructure investment: Evidence from New Zealand

Author

Listed:
  • Arthur Grimes

    (Motu Economic and Public Policy Research)

  • Matthew Roskruge

    (University of Waikato)

  • Philip McCann

    (Department of Economics, University of Waikato and Faculty of Spatial Sciences, University of Groningen)

  • Jacques Poot

    (University of Waikato)

Abstract

In this paper we link unique data on local social infrastructure expenditure with micro-level individual survey data of self-reported social capital measures of trust and participation in community activities. We use both probit and tobit models to estimate the impact of social infrastructure expenditure on social capital formation. Our results imply that the links between social capital, demographic characteristics, human capital, geography and public social infrastructure investment are rather more subtle and complex than much of the literature implies. While we find evidence in support of many of the hypothesized relationships discussed in the social capital literature, our results also suggest that the impact of public social infrastructure investment is affected by both selection effects and free rider processes.

Suggested Citation

  • Arthur Grimes & Matthew Roskruge & Philip McCann & Jacques Poot, 2010. "Social capital and regional social infrastructure investment: Evidence from New Zealand," Working Papers 10_03, Motu Economic and Public Policy Research.
    • Handle: RePEc:mtu:wpaper:10_03
    as

    Download full text from publisher

    File URL: https://motu-www.motu.org.nz/wpapers/10_03.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-338, May.
    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. Inderst, Georg, 2020. "Social Infrastructure Finance and Institutional Investors. A Global Perspective," MPRA Paper 99239, University Library of Munich, Germany.
    2. Gao, Yuan & Tian, Li & Cao, Yandong & Zhou, Lin & Li, Zhibin & Hou, Deyi, 2019. "Supplying social infrastructure land for satisfying public needs or leasing residential land? A study of local government choices in China," Land Use Policy, Elsevier, vol. 87(C).
    3. Xuan Sun & Weikai Wang & Tao Sun & Ya Ping Wang, 2018. "Understanding the Living Conditions of Chinese Urban Neighborhoods through Social Infrastructure Configurations: The Case Study of Tianjin," Sustainability, MDPI, vol. 10(9), pages 1-17, September.
    4. Matthew James Roskruge & Arthur Grimes & Philip McCann & Jacques Poot, 2011. "Housing and Social Capital in New Zealand," ERSA conference papers ersa10p784, European Regional Science Association.
    5. Zhiling Wang, 2020. "The incompatibility of local economic prosperity and migrants’ social integration: evidence from the Netherlands," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(1), pages 57-78, February.
    6. Ignatieva, E. D. & Mariev, O. S. & Serkova, A. Ye., 2020. "Impact of Infrastructure on Socio-Economic Development of Russian Regions: Methodology and Analysis," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 6(2), pages 65-73.
    7. Zhiling Wang & Thomas de Graaff & Peter Nijkamp, 2018. "Barriers of Culture, Networks, and Language in International Migration: A Review," REGION, European Regional Science Association, vol. 5, pages 73-89.
    8. Mateo Manuel Córcoles‐Muñoz & Gloria Parra‐Requena & Pedro M. García‐Villaverde & María José Ruiz‐Ortega, 2020. "Sense of belonging to an industrial district and knowledge acquisition: The role of strong and trusting interorganizational relations," Growth and Change, Wiley Blackwell, vol. 51(4), pages 1517-1541, December.

    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. Roberta Dessì & Salvatore Piccolo, 2008. "Two is Company, N is a Crowd? Merchant Guilds and Social Capital," CSEF Working Papers 202, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 12 Jul 2009.
    2. Oasis Kodila-Tedika & Julius Agbor, 2016. "Does Trust Matter for Entrepreneurship: Evidence from a Cross-Section of Countries," Economies, MDPI, vol. 4(1), pages 1-17, March.
    3. Leonardo Becchetti & Pierluigi Conzo & Alessandro Romeo, 2014. "Violence, trust, and trustworthiness: evidence from a Nairobi slum," Oxford Economic Papers, Oxford University Press, vol. 66(1), pages 283-305, January.
    4. Alberto Alesina & Ekaterina Zhuravskaya, 2011. "Segregation and the Quality of Government in a Cross Section of Countries," American Economic Review, American Economic Association, vol. 101(5), pages 1872-1911, August.
    5. Arvind Ashta & Djamchid Assadi, 2009. "An Analysis of European Online micro-lending Websites," Working Papers CEB 09-059.RS, ULB -- Universite Libre de Bruxelles.
    6. Fabian Kosse & Thomas Deckers & Pia Pinger & Hannah Schildberg-Hörisch & Armin Falk, 2020. "The Formation of Prosociality: Causal Evidence on the Role of Social Environment," Journal of Political Economy, University of Chicago Press, vol. 128(2), pages 434-467.
    7. Yaron Zelekha & Léo-Paul Dana, 2019. "Social Capital Versus Cultural Capital Determinants of Entrepreneurship: An Empirical Study of the African Continent," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 28(2), pages 250-269, September.
    8. Puspitawati, Eka, 2011. "Determinants Of Trust In The Indonesian Potato Industry: A Comparison Among Groups Of Potato Farmers," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100699, Australian Agricultural and Resource Economics Society.
    9. Philippe Aghion & Yann Algan & Pierre Cahuc & Andrei Shleifer, 2010. "Regulation and Distrust," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(3), pages 1015-1049.
    10. He, Quqiong & Pan, Ying & Sarangi, Sudipta, 2018. "Lineage-based heterogeneity and cooperative behavior in rural China," Journal of Comparative Economics, Elsevier, vol. 46(1), pages 248-269.
    11. Chaudhuri, Ananish & Sopher, Barry & Strand, Paul, 2002. "Cooperation in social dilemmas, trust and reciprocity," Journal of Economic Psychology, Elsevier, vol. 23(2), pages 231-249, April.
    12. Naresh Khatri, 2009. "Consequences of Power Distance Orientation in Organisations," Vision, , vol. 13(1), pages 1-9, January.
    13. Luis Medrano-Adán & Vicente Salas-Fumás & J. Sanchez-Asin, 2015. "Heterogeneous entrepreneurs from occupational choices in economies with minimum wages," Small Business Economics, Springer, vol. 44(3), pages 597-619, March.
    14. Wu, Wenfeng & Firth, Michael & Rui, Oliver M., 2014. "Trust and the provision of trade credit," Journal of Banking & Finance, Elsevier, vol. 39(C), pages 146-159.
    15. repec:ipg:wpaper:13 is not listed on IDEAS
    16. Yi-Min Chen, 2008. "How Much Does Country Matter?," International Regional Science Review, , vol. 31(4), pages 404-435, October.
    17. Hong Sun & Valentina Hartarska & Lezhu Zhang & Denis Nadolnyak, 2018. "The Influence of Social Capital on Farm Household’s Borrowing Behavior in Rural China," Sustainability, MDPI, vol. 10(12), pages 1-20, November.
    18. Md. Shahriar Islam & Rifat Mahmud, 2015. "Trust in Governance in Bangladesh: Ideas, Issues and Solutions," Millennial Asia, , vol. 6(2), pages 128-146, October.
    19. Fernando Ubeda & Alvaro Mendez & Francisco Javier Forcadell, 2024. "Sustainable banking and trust in the global South," Global Policy, London School of Economics and Political Science, vol. 15(S1), pages 34-44, March.
    20. Lukas, Daniel, 2009. "Efficiency effects of cross-border medical demand," Dresden Discussion Paper Series in Economics 15/09, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics.
    21. Atul Gupta & Kristina Minnick, 2022. "Social capital and managerial opportunism: Evidence from option backdating," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 45(3), pages 579-605, September.

    More about this item

    Keywords

    Social capital; trust; participation; public infrastructure; demography; geography;
    All these keywords.

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:mtu:wpaper:10_03. 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: Maxine Watene (email available below). General contact details of provider: https://edirc.repec.org/data/motuenz.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.