Studying the dynamic and mutual interactions of social capital and economic development in rural areas of Khuzestan

Raana Abazari, Mohammad Aghapour Sabbaghi

Abstract


Social capital is a new concept that is discussed in socio-economic analysis in the development of rural communities today. The relationship between social capital and economic development is of the important aspects in studies on social capital that has many ambiguities. In this study, using vector auto regression (VAR) models, dynamic and mutual effects of social capital and economic development in rural areas in the period 1996-2013 will be discussed. For this purpose, three indices of education, income distribution, and health are used to measure economic development. For social capital, four indices of social cohesion, cooperation and collaboration, divorce, and unemployment rates have been used. The empirical results show that there is a long-term dynamic relationship between social capital and economic development in rural areas of this province.

 


Keywords


Social capital, economic development, rural development, VAR model, Khuzestan province.

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