Social Capital and Economic Growth Opportunities: A Case Study of Rural Households in Obudu, Cross River State, Nigeria

Abstract

This study examined the relationship between social capital and economic growth opportunities. Primary data were collected from a sample of 500 households in Obudu Local Government Area, Cross River State, Nigeria. Information on household income, demographic factors, human capital, physical assets and social capital were collected. Social capital covers six dimensions: groups and networks; trust and solidarity; collective action and cooperative; information and communication; social cohesion and inclusion; and empowerment / political action. Social capital index for each household was constructed in the scale of 1 to 10 using linear transformation technique. The entire data was analyzed using logit model estimation. The results provides evidence and lend supports to the assertion that social capital play important role in stimulating economic growth of the rural households. Other variables found to be important include physical capital, human capital, household size and dependency factor