Does internet stimulate the accumulation of social capital? A macro perspective from Australia

Salahuddin, Mohammad, Tisdell, Clem, Burton, Lorelle and Alam, Khorshed (2016) Does internet stimulate the accumulation of social capital? A macro perspective from Australia. Economic Analysis and Policy, 49 43-55. doi:10.1016/j.eap.2015.11.011

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Author Salahuddin, Mohammad
Tisdell, Clem
Burton, Lorelle
Alam, Khorshed
Title Does internet stimulate the accumulation of social capital? A macro perspective from Australia
Journal name Economic Analysis and Policy   Check publisher's open access policy
ISSN 0313-5926
Publication date 2016-03-01
Year available 2015
Sub-type Article (original research)
DOI 10.1016/j.eap.2015.11.011
Open Access Status File (Author Post-print)
Volume 49
Start page 43
End page 55
Total pages 13
Place of publication Chatswood, NSW, Australia
Publisher Elsevier
Language eng
Abstract Based on the premise that the Internet has the potential to generate trust, this study estimates the effects of the Internet and real GDP per capita on the creation of social capital (measured by trust) for Australia for the period 1985–2013. We use ARDL bounds testing approach (Pesaran et al., 2001) to estimate the short- and long-run relationship and Granger (1969) causality test to assess the causal linkages among the variables. Findings indicate that Internet use reduces social capital in the long-run but contributes slightly to its enhancement in the short run. There is positive significant association between the level of real GDP per capita and the stock of social capital in the long-run while the relationship in the short-run is negative and significant. No causal link is found between Internet use and social capital while a unidirectional causality running from social capital to real GDP per capita is observed. The negative association between Internet use and the formation of social capital in the long-run may occur because the trust generated through greater online interaction is outweighed by the loss in trust arising from reduced face to face interaction.
Keyword ARDL
Australia
Economic growth
Social capital
Granger causality
Internet usage
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2016 Collection
School of Economics Publications
 
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Created: Mon, 18 Jan 2016, 23:00:50 EST by Emeritus Professor Clement Tisdell on behalf of School of Economics