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The Journal of Environment & Development
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The Contribution of Social Capital to Household Welfare in a Paper-Recycling Craft Village in Vietnam

Nguyen Van Ha

Faculty of Forestry at the University of Toronto

Shashi Kant

Faculty of Forestry, University of Toronto, Canada

Virginia MacLaren

Department of Geography and Program in Planning at the University of Toronto

This study examined whether the contribution of social capital to household economic outputs was greater than that of other types of capital, whether different dimensions of social capital contribute equally to household income, and whether the role of social capital varies among different categories of households. We developed a reduced-form model of the household production function, in which social capital is treated as a production factor similar to other conventional factors such as physical capital, labor, and human capital, with household income and expenditure as dependent variables. The results show that social capital has a strong and positive contribution to household income, and the positive contribution of social capital to the general (the poor) house-hold’s income is greater than that of the paper-recycling (the rich) household’s income. In contrast to other studies, the number of memberships in associations does not have an impact on household income.

Key Words: Asia • recycling • social capital • Vietnam • waste management

The Journal of Environment & Development, Vol. 13, No. 4, 371-399 (2004)
DOI: 10.1177/1070496504268345
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