Analyzing the Effects of Social Capital Supportive Strategies: A Focus on Subsidy Policies

Document Type : Research/Original/Regular Article

Authors

1 MA of Pure Economics, Faculty of Sociology, Razi University, Kermanshah, Iran

2 Assistant Professor, Department of Economics, Faculty of Sociology, Razi University, Kermanshah, Iran

Abstract

In many countries around the world, governments follow policies and supportive strategies in order to control the economic, social, and cultural issues such as reducing poverty and injustice, increasing economic situation, and pursuing developmental plans. Iran, as a developing country, needs supportive plans for its development, which actually is noted in the third, twenty ninth, and forty third principles of constitution aiming to reduce poverty and establish economic independence. Moreover, factors of resistance economy for encouraging production and employment, economic prosperity and welfare, and democratizing economy are noted as well. Subsidy is one of the tools and supportive strategies to improve public earning and welfare. Subsidy can have an effective role in wealth distribution. If the economic situation improves, it can increase public trust and satisfaction in the government, thus having a positive impact on the social capital. Considering the significance of social capital and other related factors, this study tries to investigate the effect of supportive policies on social capital from 1996 to 2017. The data analysis is done through autoregressive distributed lag (ARDL). The results show that there is a positive relationship between the government's support and expenditure in health, housing, and subsidy with social capital. There is, however, a negative relationship between government's support in social security and education with social capital.

Keywords

Main Subjects


-Baker, W., (1990). ''Market networks and corporate behaviour''. American Journal of Sociology, 96(3), 589-625.
-Bourdieu, P., (1986). ''The Forms of Capital, in J Richardson(ed.); Handbook of Theory and Research for the Sociology of Education''. New York, Green wood.
-Breisingel, C., & Engelke, W., and Ecker, O., (2012). ''Leveraging Fuel Subsidy
Reform for Transition in Yemen''. Sustainability, 4, 2862-2887.
-Brehm, John., & Rahn, Wandy., (1997). ''Individual-Level Evidence for the Causes and Consequances of Social Capital''. American Journal of Political Science, volume 41, Issue 3 (Jul.,1997) , 999-1023.
-Coleman, J., (1988). ''Social Capital in the Creation of Human  Capital'' .The American Journal of Sociology,vol.94,Pp.S95-S120.
-De Vaus, D. A., (1995). ''Surveys in social research''. London: Rutledge.
-Dr. Jane L, Harrison., & Dr. Claire A, Montgomery ., & Dr. P, Wilner Jeanty. , (2018). '' A
 spatial, simultaneous model of social capital and poverty''. Journal of Behavioral and Experimental  Economics(2018).
-GIaeser, E.,& D.Laibson., & B.Sancerdote., (2000). ''THE Economic Approch to Social Capital''. NBER Working paper No.7728(Cambridge, MA: National Bureau  of Economic Research).
-Giaeser ,E., (2001). ''The Formation of Social''. Organisation for Economic co-operation and Development.
-Korayem, K., (2013). ''Food Subsidy and the Social Assistance Program in Egypt; Targeting and Efficiency Assessment''. Topics in Middle Eastern and NorthAfrican Economies.
- Lu, S., & Lin, Y.,& Vikse,.H., & Huang, C. (2013). ''Effectiveness of social welfare  programmes on poverty reduction and income inequlity in china''.Journal of Asiarr Public Policy,6(3), 27-291.
-Offe, Claus., & Fuchs, Susanne., (2002). '' Democracy in Flux: The Evolution of Social Capital in Contemporary Society''. New York: Oxford University Press.
-Putnam,R.,(2000). ''Bowling Alone: The Collapse and Revival of American Community''. New York, Simon & Schuster.