THE EFFECTS OF SOCIAL CAPITAL ON ECONOMIC GROWTH IN NIGERIA

Abstract

Recent discourse on the problem of economic growth in Nigeria is also link to the lack of social capital among the governmental and individual as well. The aim of this paper is to assess the impact of the existing components of social capital on the economic performance in Nigeria. Using a multiple linear regression analysis this paper examines the relationship between the component of government social capital i.e. (enforceability of contract, the rule of law, civil liberty and economic liberty) and economic growth (proxied by gross domestic product (GDP) in Nigeria. The results obtained indicate that the components of government social capital (enforceability of contract, rule of law, civil liberty and economic liberty) are negatively related to economic growth. Measure, such as the fight against corruption, good governance and the involvement of the people in the design and implementation of government policy, trust, honesty among the government officials in carrying out their activities and between the government and private organizations are suggested as possible ways of improving social capital.