Social capital, networks, trust and immigrant entrepreneurship: a cross‐country analysis

Ekaterina Turkina and Mai Thi Thanh Thai

Journal of Enterprising Communities: People and Places in the Global Economy, 2013, vol. 7, issue 2, 108-124

Abstract: Purpose - This study is devoted to the empirical assessment of the macro‐level impact of social capital on immigrant entrepreneurship (the general levels of immigrant entrepreneurship, as well as high‐value added immigrant entrepreneurship). Design/methodology/approach - The paper applies multiple regression analysis to the data on immigrant entrepreneurship and high‐value added immigrant entrepreneurship provided by OECD. The measures of the independent variables (the components of social capital) are based on World Value Survey. Findings - The results reveal that social capital does play a significant role in high‐value added immigrant entrepreneurship in particular and immigrant entrepreneurship in general. With strong statistical significance, three social capital factors – networking, interpersonal trust, and institutional trust – provide an explanation for variations in immigrant entrepreneurship across countries. Originality/value - Although the literature has long pointed out the importance of social capital as a determinant of economic activity, entrepreneurship researchers have focused much attention on the impact of personal, economic, and politico‐administrative factors while leaving social capital factors largely unexamined. Thus, study offers a systematic analysis of the effects of social capital on immigrant entrepreneurship and high‐value added immigrant entrepreneurship at a macro level and discusses policy‐making implications.

Keywords: Immigrants; Social capital; Networking; Trust; Immigrant entrepreneurship; High‐value added immigrant entrepreneurship (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:jecpps:v:7:y:2013:i:2:p:108-124

DOI: 10.1108/17506201311325779

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