An Analysis of Social Capital Reduction in Banking Industry and its Impact on GDP

Social capital is a relatively new concept in the social sciences and is one of the most important challenges of new era in a way that based on experts’ comments, the solution for all the problems of today’s modern world is social capital. To this end, one of the problems that managers of organizations particularly; service and manufacturing organizations have faced with today is lack of trust in accurate implementation of contract specifically implied contracts. If managers tend to control the whole organization for the accurate implementation of these contracts, it would lead to extravagant costs. One proper and certain way to solve this problem is to apply elements and components of social capital in organizations. By deploying scientists’ thoughts regarding social capital, the present research attempts to analyze the evidence of social capital reduction in banking industry and test its impact along with other forms of capital on GDP of the country. Findings of this study indicate that there is a significant and reverse relation between social capital reduction in banking industry and GDP. JEL Classifications: J24, E23, D81, E58