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Social Capital and Economic Performance in the American States*
Terrence Casey 1 and Kevin Christ 1
  1 Rose-Hulman Institute of Technology

  *Direct correspondence to Terrence Casey, Assistant Professor of Political Science or Kevin Christ, Assistant Professor of Economics, Department of Humanities and Social Sciences, Rose-Hulman Institute of Technology, 5500 Wabash Ave., Terre Haute, IN 47803 〈Terrence.Casey@rose-hulman.edu〉 and 〈Kevin.Christ@rose-hulman.edu〉. Drs. Casey and Christ will share all data and coding information with those wishing to replicate this study. Previous versions of this article were presented at the 2002 American Political Science Association Conference, Boston, MA and at the 2004 Western Economics Association Conference, Vancouver, BC. The authors thank several anonymous reviewers and Dale Bremmer for helpful suggestions on earlier drafts. Special thanks to Mitch Landess for the "thread count" line.

Copyright © 2005 by the Southwestern Social Science Association

ABSTRACT

Objective. This study tests the claim that areas with higher levels of social capital have superior economic performance.

Method. The 14-measure index of social capital created by Robert Putnam is reconstructed for an extended time period and integrated into cross-sectional regression models including physical capital, human capital, and other factors relevant to state economic performance.

Results. The analysis shows that social capital has no discernable influence on aggregate measures of output and employment. However, it does have a positive and significant impact on measures of economic equality and employment stability.

Conclusions. This study does not support the claim that social capital is a general prerequisite for prosperity, but it does suggest that it may serve to reinforce a particular mode of communitarian economic development.

DIGITAL OBJECT IDENTIFIER (DOI)
10.1111/j.0038-4941.2005.00358.x About DOI

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