Investigating the Relation between Oil Revenues Fluctuations and Government Size on Social Capital in Iran

Document Type : Original Article


1 PhD Candidate in Economics, Faculty of Administrative Sciences and Economics, University of Isfahan

2 Professor of Economics, Faculty of Administrative and Economics Sciences, University of Isfahan

3 Department of Economics, Faculty of Administrative and Economics Sciences, University of Isfahan


In this paper, the impact of government size, as an index showing economic and political freedom, and oil revenue fluctuations on social capital is analyzed. To do so, we had to define and measure an index for social capital, according to previous studies. Trust is the most common criteria, used in studies. In this research, following Fukuyama approach, we used invers method. Instead of evaluating or measuring social capital as a positive value, the amount of its non-existence is measured. So, we have measured lack of trust (social capital) by defining a compound index. The compound index is made by taking average of two variables: Number of judiciary case (including dishonored checks) and value of ratio of non-performing loans to total loans paid (to private sector), both normalized between zero and one. According to this index, trend of social capital during studying period (1362-1390) is decreasing. Estimating social capital function with government size and oil revenue fluctuations as explanatory variables using ARDL approach, shows that government size as the index for eco-political freedom, and oil revenue fluctuations, both have negative impact on social capital.


- تفضلی، فریدون (1384)؛ اقتصاد کلان، نظریه‌ها و سیاست‌های اقتصادی؛ تهران، نشر نی، چاپ پانزدهم.
- دلیری، حسن و محسن رنانی (1389)؛ "سرمایه اجتماعی چگونه وارد تابع تولید می‌شود؟ (طراحی یک الگوی نظری و آزمون آن در چارچوب یک مدل رشد درونزا)"؛ اقتصاد تطبیقی، پژوهشکده علوم انسانی و مطالعات فرهنگی، سال اول، شماره اول، ص‌ص 41-68.
- رحمانی، تیمور و حسین عباسی نژاد و میثم امیری (1386)؛ "بررسی تاثیر سرمایه اجتماعی بر رشد اقتصادی ایران، مطالعه موردی: استان‌های کشور با روش اقتصادسنجی فضایی"؛ فصلنامه پژوهش‌های اقتصادی، سال ششم، شماره دوم.
- رنانی، محسن (1387)؛ نفت، سرمایه اجتماعی و امتناع توسعه؛ ویژه نامه سده نفت، روزنامه سرمایه.
- رنانی، محسن و رزیتا مویدفر (1390)؛ چرخه‌های افول اخلاق و اقتصاد: سرمایه اجتماعی و توسعه آن در ایران؛ تهران، انتشارات طرح نو.
- سعادت، رحمان (1387)؛ "برآورد روند سرمایه اجتماعی در ایران (با استفاده از روش فازی)"؛ مجله تحقیقات اقتصادی؛ ص‌ص 56-41.
- سوری، علی (1384)؛ "سرمایه اجتماعی و عملکرد اقتصادی"؛ مجله تحقیقات اقتصادی، تابستان 1384، 108-87.
- صفدری، مهدی و محمد حسین کریم و محمد رسول خسروی (1387)؛ "بررسی تاثیر سرمایه اجتماعی بر رشد اقتصادی ایران"؛ فصلنامه اقتصاد مقداری، دوره 5، شماره 2.
- فرانکوئیس، پاتریک (1386)؛ سرمایه اجتماعی و توسعه اقتصادی؛ ترجمه محسن رنانی و رزیتا مویدفر؛ تهران، ریاست جمهوری، معاونت برنامه ریزی و نظارت راهبردی، مرکز مدارک علمی، موزه و انتشارات.
- مویدفر، رزیتا، نعمت الله اکبری و حسن دلیری (1388)؛ "اثرات متقابل و پویای سرمایه اجتماعی و توسعه اقتصادی (مطالعه موردی ایران 1385-1368)"؛ مطالعات اقتصاد بین الملل، سال بیستم، شماره دوم.
- نجارزاده، رضا و محمد سلیمانی (1391)؛ "سرمایه اجتماعی، درآمد و رفاه فردی (مطالعه موردی ایران)"؛ مجله تحقیقات اقتصادی، دوره 47 شماره 2، سال 1391 صص 193-177.
- نوفرستی، محمد (1392)؛ ریشه واحد و همجمعی در اقتصادسنجی، تهران، نشر رسا.
- Alesina, A., La Ferrara, E., (2002), “Who trusts others?” Journal of Public Economics 85, 207:234
- Atkinson, Giles and Hamilton, Kirk (2003); “Saving, growth and the resource curse hypothesis” World Development, Vol.31, No.11, 1793:1807
- Attanasi, Giuseppe, Fortuna Casoria, Samuele Centorrino, Giulia Urso (2013); “Cultural investment, local development and instantaneous social capital: A case study of a gathering festival in the South of Italy” The Journal of Socio-Economics, Volume 47, December 2013, 228:247.
- Baker, W. (1990) “Market Networks and Corporate Behaviour”, American Journal of Sociology 96: 589 – 625.
- Bartolini, Stefano, Francesco Sarracino (2015), “The Dark Side of Chinese Growth: Declining Social Capital and Well-Being in Times of Economic Boom”, World Development, Volume 74, October 2015, Pages 333–351.
- Belliveau, M. A, C. A III O’Reilly, and J. B Wade (1996) “Social Capital at the Top: Effects of Social Similarity and Status on CEO Compensation”, Academy of Management Journal 39: 1568 – 1593.
- Boenisch, Peter , Lutz Schneider (2013); “The social capital legacy of communism-results from the Berlin Wall experiment” European Journal of Political Economy,Volume 32, December 2013,391:411.
- Bourdieu, P. (1986); “The Forms of Capital” pp. 241-58, in Handbook of theory and research for the sociology of education, edited by John G Richardson, New York: Greenwood Press.
- Bourdieu, P., and L. P. D. Wacquant (1992) An Invitation to Reflexive sociology, Chicago: University of Chicago Press.
- Boxman, E. A. W, P. M De Grant, and H. D Flap (1991) “The Impact of Social and Human Capital on the Income Attainment of Dutch Managers” Social Networks 13: 51 – 73.
- Brehm, John, and W Rahn (1997) “Individual-Level Evidence for the Causes and Consequences of Social Capital”, American Journal of Political Science 41: 999 – 1023.
- Burt, Ronald. 1992. Structural Holes: The Social Structure of Competition. Cambridge: Harvard University Press
- Brunnschweiler, Christin (2007), “Cursing the blessing? Mutural resource abundance, institutions and economic growth”, World Development, Vol.36, No. 3, 399:416.
- Coleman, James S. (1990) Foundations of social theory, Cambridge: Harvard University Press.
- Dodd D. MelissaJohn BrummettebVincent Hazletonc (2015), “A social capital approach: An examination of Putnam’s civic engagement and public relations roles”, Public Relations ReviewVolume 41, Issue 4, November 2015, Pages 472–479.
- Ebrahim-zade, Christine (2003); “Dutch Disease: Too much wealth managed unwisely” Finance and Development, volume40, No.1.
- Fukuyama, Francis (1995) Trust : the social virtues and the creation of prosperity. London: Hamish Hamilton.
- Fukuyama, Francis (1997), “Social Capital”, THE TANNER LECTURES ON HUMAN VALUES Delivered at Brasenose College, Oxford May 12, 14, and 15, 1997.
- Grootaert, C., Narayan, D., Jones, V. N., & Woolcock, M. (2004); “Measuring social capital An integrated questionnaire” World Bank Working paper No. 18, The World Bank, Washington, DC
- Groot, Wim, Henriette Maassen Van Den Brink and Bernard Van Praag (2007); “The compensating income variation of social capital”, Social Indicators Research, 82: 189-207.
- Inglehart, R (1997) Modernization and post-modernization: cultural, economic and political change in 43 societies, Princeton: Princeton University Press.
- Janssens, Wendy (2010), “Women’s Empowerment and the Creation of Social Capital in Indian Villages” World Development, Volume 38, Issue 7, July 2010, 974:988
- Jones, Nikoleta (2010); “Investigating the influence of social costs and benefits of environmental policies through social capital theory” Policy Sci, 43, 229:244
- Kaufmann, D., Kraay, A. and Mastruzzi, M. (2008), “Governance Matters VII aggregate and individual governance indicators for 1996-2007” World Bank Policy Research, Working paper, no.4654, 1:105.
- Knoke, D. (1999) “Organizational networks and corporate social capital” Pp. 17 – 42 in Corporate Social Capital and Liability, edited by S. M. Gabbay. Boston: Kluwer.
- Kolstad, I. Wiig, A. Williams, A.,(2009),  Mission improbable: Does petroleum-related aid address the resource curse?, Energy Policy, 37 954-965.
- Leite, Carlos and Weidmann, Jens (1999); “Does mother nature corrupt? Natural Resource, Corruption, and Economic Growth” IMF Working paper, no.99/85
- Lochner, K., Kawachi, I., & Kennedy, B. P. (1999) “Social capital: A guide to its measurement” Health&Place, 5, 259:270.
- Loury, G. (1992) “The economics of discrimination: Getting to the core of the problem.’ Harvard Journal for African American Public Policy 1: 91 – 110.
- Nahapiet, Janine, and Sumantra Ghoshal. 1998. “Social capital, intellectual capital, and the organizational advantage.” Academy of Management Review 23: 242.
- Neira, Isabel, Emilia Va´zquez, Marta Portela (2009); “An Empirical Analysis of Social Capital and Economic Growth in Europe (1980–2000)”; Soc Indic Res. 92, 111:129
- Nieminen,Tarja, Tuija Martelin, Seppo Koskinen,Jussi Simpura, Erkki Alanen Tommi Ha¨rka¨nen, Arpo Aromaa(2008) ; “Measurement and socio-demographic variation of social capital in a large population-based survey”; Soc Indic Res, 85, 405:423.
- Nyamori, Robert Ochoki, Stewart R. Lawrence, Hector B. Perera.(2012) “Revitalising local democracy: A social capital analysis in the context of a New Zealand local authority” Critical Perspectives on Accounting, Volume 23, Issues 7–8, December 2012, 572:594.
- Pennar, K. (1997) “The tie that leads to prosperity: The economic value of social bonds is only beginning to be measured.” Business Weekly: 153 – 155
- Portes, Alejandro (1998), “Social capital: its origins and applications in modern sociology.” Annual Review of Sociology 24: 1-25.
- Portes, Alejandro, and Julia Sensenbrenner. 1993. “Embeddedness and immigration: Notes on the social determinants of economic action.” American Journal of Sociology 98: 1320 – 1350.
- Putnam, Robert D. (1995), “Bowling alone: America’s declining social capital” Journal of Democracy 6: 65-78.
- Ram, Rati (2013), “Social Capital and Income Inequality in the United States”; Atl Econ J41, 89:91.
- Sachs, Jeffrey D. and Warner, Andrew M. (2001), “The Curse of Natural Resources”; European Economic Review, No.45, 827:838.
- Sala-i-Martin, Xavier and Subramanian, Arvind (2003), “Addressing the natural resource curse: an illustration from Nigeria”; NBER Working Paper, no.9804, 1:46.
- Schiff, M. 1992. “Social capital, labour mobility, and welfare: The impact of uniting states.” Rationailty and Society 4.
- Shoji, Masahiro (2012), “Social Capital Formation and Credit Access: Evidence from Sri Lanka”; World Development, Volume 40, Issue 12, December 2012, 2522:2536.
- Thomas, C. Y. 1996. “Capital markets, financial markets and social capital.” Social and Economic Studies 45: 1 – 23.
- Woolcock, Michael. (1998), “Social capital and economic development: Towards a theoretical synthesis and policy framework”; Theory and Society, 27, 151:208.
- Yamamura, Eiji (2012), “Social capital, household income, and preferences for income redistribution”; European Journal of Political Economy, 28, 498:511
- Yamamura, Eiji (2011), “Comparison of the effects of homeownership by individuals and their neighbors on social capital formation: Evidence from Japanese General Social Surveys”; The Journal of Socio-Economics, Volume 40, Issue 5, October 2011, 637:644.