Volume 4, Issue 2, 2022-2023, Pages 67 - 77

Author(s) : Dr. Naghmeh Pourfathy* ¹

Abstract :
Abstract In recent years, social capital has been defined as institutions, the network of relationships between people, values and related norms, and its role in development and poverty reduction programs has increased significantly. In such a way, the concept of social capital as an important determinant in economic development has attracted growing attention among development economists. In other words, social capital is one of the basic factors of development. It is worth mentioning that no country can achieve sustainable economic development without basic investment in human capital. The economic performance of social capital is through the reduction of transaction costs associated with formal coordination mechanisms such as contracts, hierarchies, bureaucratic rules, and the like. Social capital is an informal norm that enhances cooperation between individual social capital and strengthens people's understanding of themselves and the world. Social capital is necessary for the efficient functioning of modern economies, and social capital at the macro level includes different aspects of institutional quality and is closely related to income distribution and social cohesion. Countries use new capital goods to replace old ones that are used in the production of goods and services. If the country cannot replace capital goods until the end of their useful life; Production decreases . In general, the formation of more capital in the economy shows itself with greater economic growth and greater growth of total income. Keywords: Social capital, financial development, economic development, social capital index

Keywords :
Social capital, financial development, economic development, social capital index