Social Capital within the Urban Small-Firm-Sector in Developing Countries: A Form of Modern Organization or a Reason for Economic Backwardness?

Found at: https://hdl.handle.net/10535/2008
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Type:	Conference Paper
Author:	Annen, Kurt
Conference:	Constituting the Commons: Crafting Sustainable Commons in the New Millennium, the Eighth Biennial Conference of the International Association for the Study of Common Property
Location:	Bloomington, IN
Conf. Date:	May 31-June 4, 2000
Date:	2000
URI:	https://hdl.handle.net/10535/2008
Sector:	Social Organization
Region:
Subject(s):	IASC common pool resources--developing countries social capital--developing countries social capital--models social networks--developing countries economic development--developing countries institutional economics--developing countries
Abstract:	"This article explores the role of social capital created by social network membership in the small-firm sector in developing countries. Some empirical studies find that social capital hampers economic performance by creating market segmentation and inducing rent-seeking activities. Other studies observe that social capital is an important prerequisite for productive interaction among small firms. This paper offers a model of social capital governance based on the New Institutional Economics which distinguishes between inclusive and exclusive social capital. It argues that inclusive social capital furthers economic performance while exclusive social capital may not. Two case studies are included."

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