Journal of Social and Economic Development

, Volume 20, Issue 1, pp 152–173 | Cite as

Regulation and social capital

  • Goran SumkoskiEmail author
Research Paper


This research analyzes the impact of social capital on regulation. The institutional theory of regulation introduces additional principles of independence, accountability and transparency of regulatory agencies; however, the paper argues here for further extending the theoretical and practical scope of regulation by introducing additional social aspects such as the notions of participation, inclusion, credibility and ultimately, legitimacy. The theoretical framework is illustrated with an empirical research conducted using the existing infrastructure regulatory indicators for energy, transport and telecommunications developed by OECD and specially reconstructed infrastructure regulatory indicators for Bangladesh for the period of 1975–2013 to exactly mirror the OECD’s infrastructure indicators datasets. The empirical results appear to support the argument for broadening the theory and practice of regulation by inclusion of social factors in addition to economic and technical aspects of the traditional theory of regulation.


Regulation Social capital Institutions Infrastructure Developing country OECD 

JEL Classifications

L51 Economics of Regulation L98 Government Policy O35 Social Innovation K23 Regulated Industries and Administrative Law 


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Copyright information

© Institute for Social and Economic Change 2018

Authors and Affiliations

  1. 1.Meiji UniversityTokyoJapan

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