Patterns of Social Capital in West German Regions

Abstract

Social capital is often defined as consisting of trust and postmaterialist values on the one hand, and social networks on the other hand. This article examines how different governance modes such as networks, markets, and hierarchies are related to trust and postmaterialist values in 74 West German regions.A principle component analysis of 40 social capital indicators shows that trust and postmaterialist values do not solely combine with networks but also with preferences for markets and hierarchies. A cluster analysis identifies two dominant types of regional social capital in West German regions. These types are different from the well-known Italian patterns described by Robert Putnam in his seminal work. In the period 1995—2002, the annual economic growth in regions which have combined trust with preferences for strong markets and weak political networks was on average 1 percent higher than in regions with inverted preferences.