Analyzing the effects of social capital supportive strategies with emphasis on subsidy policies

In most countries, governments are adopting specific policies and use government decisions to adopt supportive policies to tackle poverty and economic growth and to achieve economic, social and cultural goals. Iran, as a developing country, will always need a supportive system for growth and development. One of these supportive policies is subsidy strategies, which are used to improve livelihoods and the well-being of those in need. As a supportive tool, subsidies play an important role in improving the distribution of income and economic conditions, it can create the satisfaction and confidence of the people to government and by doing so, have a positive effect on social capital. Given the importance and value of social capital, and other factor affecting it, this paper attempts to address this issue to investigate the effect of supportive policies on social capital in Iran by using ARDL method during 1996-2017 period. The results shows that the relationship between government supportive expenditures in health and housing and social capital is positive, but the relationship between government supportive expenditures in social security and education and social capital is positive.