Analysis of Macro Factors Affecting the Process of Social Capital Accumulation in Iran

In this article the process of social capital accumulation and its determinants has been formulated. Based on the formulation, the process of social capital accumulation in Iran has been analyzed using co-integration approach. Social capital formation function was estimated using Johanson method and vector error correction model with data for period 1974-2012. According to the findings of this article, social capital is positively affected by physical capital, income level and human capital in both long term and short term. But for the same period, determinants like unemployment, rate of urbanization and industrialization have negative effect on social capital. Income inequality and inflation only in long term have positive and significant effect on social capital.