Social capital, human capital and sustainable economic development

Abstract

The purpose of the paper is to identify the importance of social capital as a factor in achieving sustainable economic growth and development. In fact, it is largely accepted that historical literature on economic growth focuses on physical and human capital as key determinants of economic growth and development; and particularly neglects other qualitative factors that may impact positively on economic performance. In this paper, we will try to shed light on relatively few aspects of the complex interplay between social capital and sustainable economic development, and to also show if there is a relationship between these two concepts. On one side sustainable economic development generates more available resources and better conditions for the well-being of the nation; and on the other side a good social environment enriches institutional quality that will impact on economic activity and in the long run economic growth. (original abstract)