Profitable Associations: The Role of Social Capital in Rural Community Economic Development

The literature on social capital indicates that it can be an important element for enhancing economic activity in communities. Such an assertion is justified by theorizing that elements of social capital, namely trust, shared values, and established networks can form the basis for economic transactions, including labour market opportunities. However, little empirical analysis of these claims has been undertaken. The paper presented here constitutes an initial exploration of a number of questions related to the role of social capital in rural economic development: ‚ What constitutes the relationship between social capital and economic development? ‚ Is there a relationship between social capital and labour market opportunities in rural communities? ‚ Is social capital a useful concept to use in economic development studies? These questions are addressed through research conducted in NRE/SRC sites in rural southern and eastern Ontario. A quantitative assessment for the structural elements of social capital is followed by a review of more qualitative information about the relationship between economic development and social capital. This paper forms the basis for identifying mechanisms at work and the potential contribution that the concept of social capital can make to economic development studies.