Authors: Ron Boschma*, Utrecht University, Roberto Antonietti, University of Padova
Topics: Economic Geography
Keywords: bonding social capital, bridging social capital, regional diversification, resilience, economic recession
Session Type: Paper
Start / End Time: 2:40 PM / 4:20 PM
Room: Regent, Marriott, River Tower Elevators, 4th Floor
Presentation File: No File Uploaded
There is increasing interest in the question how institutions affect regional diversification, especially in times of economic crisis. This paper focuses on social capital as a predictor of the entry of new industries and the exits of existing industries in Italian provinces during the 2004-2010 period. Results show that bridging social capital in a region positively contributes to the entry of new industries, especially when they are unrelated to existing specializations in the region. Bonding social capital, instead, is related to a lower probability of entry, especially in unrelated industries, but is also associated with a lower probability of exit, particularly in industries related to existing specializations. We also find that bridging social capital does not have an impact on regional diversification during the crisis period (2008-2010), while bonding social capital increases regional resilience by reducing the probability of exit.