Can Social Capital Be the New Dynamics of Economic Development

Abstract

Besides other capital types, social capital is such a kind of capital, which is revealed by the confidence level of the society and certain financial facts. This study questions whether the social capital could be new dynamics for the developments of the countries along with other types of capitals (real capital and human capital). According to the recent research it has been concluded that the social capital has some positive effects to decrease the asymmetric information; to gain trust, information sharing and competitive power; to increase the participation in political life and social organizations; to fix the distribution of income; and to accelerate the economic growth. As a result, considering the fact that the countries with high confidence level have high humanitarian growth and high income per capita, it has been concluded that social capital may create new dynamics of economic development.