Study of Relationship between Social Capital and Labor Productivity in Iran

Given definitions who social capital can be seen as a set of norms in social systems and permit the cooperation between members of the community, and decrease the costs, it is expected that it cause positively the increase in labor productivity and total productivity in organizations and production systems.
In this study after presentation of different definitions of social capital and the channels of influence of it's on other social and economic variables, we used a complex social capital index and indicators that calculated by Iranian data during 1981-2011, to study the impact of this variable on labor productivity by using an ARDL approach. Short and long-term results of model estimations confirm the positive and significant impact of social capital on labor productivity in Iran.
This results shows that we can increase the productivity in production process in Iranian economy by increasing social capital concept, which, is the main principles of Islamic Republic of Iran.