Social Capital and Economic Welfare: Perspectives of Russia

Abstract

Over the last decade, the studies on economic growth have added new empirical evidence on the relationship between social capital and economic welfare. The article examines the approaches to the empirical study of social capital and suggests the analysis of various social groups, including Olsen-type groups, and Putnam-type groups depending on the radius of confidence. A comparable cross-country analysis of the level of trust as an indicator of social capital accumulated in the society was carried out. Based on the World Value Survey and the Russian regional data, it was shown that the confidence in groups with a wide radius of confidence correlates with the level of their economic welfare. The study reveals that in the Russian society there exists a number of prerequisites for the formation of social groups in terms of enhancing economic growth by bridging social capital, i.e. Putnam-type groups.