Author(s):
1. Ilija Stojanovic, Republic of Srpska, Bosnia and Herzegovina

Abstract:
Social capital has become very important asset for development and economic prosperity of modern society. It appears that society with more social capital is able to improve welfare of their citizens. Some scholars believe there is a link between social capital and good governance. However, it's not easy to explain all dimensions of social capital. Moreover, measuring of influence of social capital on public sector performance is not an easy task. From 1990s, the paradigm of social capital has great influence on development theory, research and policy. An increasing number of scholars and practitioners have questioned on impact of social capital on public sector performance. However, many countries do not take into account the social capital as the basis for economic development through fostering public sector reforms. Simply, it is not recognized the importance of putting this issue on the political agenda. Nevertheless, there is a great need for scholarly research into the problem identified in order to find the best solutions for tackling it. This paper is aimed to answer the following research question: Does social capital influence on public sector performance? The research took an explanatory approach, establishing causal links between the selected variables. Values of the independent variable are presented through the Social Capital Indicator of the Legatum Prosperity Index. Values of the dependent variable for different dimensions of public sector performances are presented through data of the Sustainable Governance Indicators, World Government Indicators, Global Innovation Index, Global Competitiveness Index, Index of the Economic Freedom of the World and Public Sector expenses. The data from secondary resources have been most valuable statistical basis. These data ware analysed through quantitative statistical techniques to test the hypotheses and observe significant correlations. More specifically, the methods of correlation and regression were employed to measure the impact of identified indicators and indexes. The conclusions drawn from the preliminary results indicate a high degree of correlation and regression of independent and dependents variables, suggesting a potential theoretical contribution to the existing knowledge and valuable recommendations for practitioners and policy makers.

Key words:
social capital, public sector, performances, efficiency, effectiveness

Date of abstract submission:
22.06.2012.

Number of visits:
460

Conference:
REDETE 2012