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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS<br />

JUNE 2011<br />

VOL 3, NO 2<br />

Bridging social capital reduces exchange costs and increases confidence through enhancing<br />

cooperation .But bonding social cooperation have negative effects on social cooperation and<br />

peoples relation to external environment. In a research with the title "Social, Physical and<br />

Human Capitals Analysis in Iranian Economy" (saadat, 1384), 28 states of the country have been<br />

considered. Results show that social capital has a relatively fixed procedure with some<br />

oscillations which are caused by historical, cultural and political problems.<br />

Surveys show that Fars province has the most and baluchestan province has the least social<br />

capital .Also Yazd and Kerman provinces have high and kohkiloyeh has low social capital.<br />

This survey's indicators have been cooperation rate (proportion of members of cultural, artistics<br />

to the whole population) and crime rate justice files in elections, trustfulness, honesty and<br />

general knowledge.<br />

After the Islamic revolution, physical capital has raised but social capital proportion to physical<br />

capital has decreased. Also the proportion of human resources in this period of time has been<br />

ascending and social capital motion to the physical capital has been ascending. The other<br />

conclusion is that human, physical and social capital procedure has been positive.<br />

Theoretical Considerations<br />

Studying economical production and promotion inside countries in the second half of 20 th<br />

century, some conclusions have been achieved which could not been explained by economical<br />

theories. Pantham study in north and southern part of Italy was one of them that for a long time<br />

was a puzzle.<br />

Twenty years research on local and state governments in different regions of Italy by Robert<br />

Pantham showed that participation customs like voting, reading news<strong>paper</strong>s, membership in<br />

associations and clubs are signs of an effective and efficient government.<br />

So, interactive relation networks and social relations, is the condition of economical and social<br />

modernization not its conclusion (UN, 2001). Nort considers different economical applications<br />

among countries with the same production facilities and finds social capital a key factor,<br />

especially if social capital is proportional to economical development, as in happened it<br />

European countries, it will be effective on promotion and development.<br />

In next discussion, social capital effects on the national and local elements of economical<br />

development will be studied.<br />

Social Capital Effects of Elements and Factors of Economy and Production<br />

Social capital is becoming one of the vital factors in economical development in all over the<br />

world. Tens of researches have shown that for rural development, local public associations are as<br />

important as physical and technological capitalization. Studies have been done to find why some<br />

activities to control common sources like water and pasture resources are successful. But others<br />

have failed. Social capital resources have a great role while government interference leads to<br />

undesired results.<br />

Social capital is not only a tool to achieve development, but also a goal for social developments<br />

(Sen, 1380)<br />

Economical transaction when done in social network is more efficient. Studies which have been<br />

done about efficient industrial sectors, insist on the importance of cooperation between workers<br />

and entrepreneurs.<br />

COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 502

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