Social Capital and its Implication for Economic Wellbeing and Sustainable Development: Household Level Analysis to Jimma Zone, South-West Ethiopia

Abstract

The implication of social capital to people’s economic position has not been well addressed in Ethiopia. Thus, this study is aimed to examine the effect of household’s stock of social capital on its economic wellbeing, taking a random sample of households from Jimma zone. To objective this objective, we obtained the necessary data both from the primary and secondary sources. The research design is of a cross-sectional type in nature. Our binary logit regression showed that, the stock of social capital has favorable impact on the households’ economic wellbeing in Jimma zone. Besides, the economic impact of households’ special stock of social capital was found to be more relevant compared to their general stock of social capital. Hence, general social capital need to be taken as an opportunity to create special social capitals, as the later is meant to favor the households’ wellbeing.