Socioeconomic Development and Voluntary Associations in Swedish Municipalities

Abstract

This paper explores the link between voluntary associations and socioeconomic development in Swedish municipalities. According to previous research in the field of social capital, the causal flow goes from having many associations to a high level of socioeconomic development. It has been argued, however, that the causal flow from the level of socioeconomic development to the level of social capital is so weak that it can be ignored. This paper tests a simple simultaneous equation model in order to test whether the causal flows from socioeconomic development to social capital and the inverse are simultaneous. The study is carried out at an aggregated level (the municipalities) that corresponds to the lowest administrative level in Sweden. The results indicate that the socioeconomic development cannot be ignored and that there is a simultaneous relationship. Moreover, the empirical findings indicate that the relationship is negative between the variables expressing socioeconomic development and associational density.