Can Social Capital Reduce Poverty? A Study of Rural Households in Eastern Bhutan |
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Authors: | Galey Tenzin Kozo Otsuka Kaoru Natsuda |
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Institution: | 1. Department of Agricultural Marketing and Cooperatives, Ministry of Agriculture and Forests, Bhutan, Thimphu, Bhutan;2. College of International Management, Ritsumeikan Asia Pacific University, Oita, Japan |
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Abstract: | This study examines the impact of social capital on the poverty of rural households in eastern Bhutan, with a particular focus on households' participation in community groups, which can be a proxy for the structural aspect of social capital. Using a two‐stage probit least squares simultaneous equation model, the present study reveals that social capital positively contributes to poverty reduction in Bhutan. This study also finds that non‐farm income is important for poverty reduction in rural areas. Our results, however, indicate that poor households in remote areas are discouraged from participating in community groups. |
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Keywords: | Bhutan community groups poverty reduction social capital I3 C34 O53 |
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