Social Capital in Rural Areas of Vietnam and Its Impact on Households’ Life Satisfaction

Abstract:Using data of the Vietnam Access to Resources Household Survey 2014, with the participation of 3,648 households in rural areas of 12 provinces in Vietnam and two models: OLS regression and ordered logit, this paper studied the determinants of social capital in the rural area of Vietnam. Moreover, the paper also analyzed the impact of social capital on life satisfaction and risk coping strategies. Results of regression models confirmed that social capital is the essential ingredient for the life satisfaction of the community and at the same time, social capital also has notable impacts on households’ post-risk recovery. In the relationship with the life satisfaction, all the variables representing social capital, except for general trust, positively affected the growth of life satisfaction of households, aside from physical factors such as income. Therefore, social capital, along with economic growth, was the biggest factor that can help households increase their life satisfaction.