Social capital and economic development in transition economies

The social capital that shows the significance of the interindividual relations in the society is crucial actor in the provision of economic development. The social capital is a concept that emphasizes the momentousness of social relations and holds the economic development, which consists of the factors like social norms, social networks and trust. The aim of this thesis is to show how social capital play a role in economic development based on the relationship between social capital and economic development. For this purpose, data from 6 transition countries, between 2005 and 2014 were analyzed using panel data. Findings show that the democracy level of these countries has negative effects on economic development and the freedom of choice and politics have positive effects.