Historically, the mankind has benefited from social capital in his collective life course implicitly and unconsciously. Nowadays, the concept of social capital has been included in the center of economy and community. The communities need to identify the framework of social capital and its consequences in order to overcome recession and deterioration. The relationship among socioeconomic indicators and social capital is one of the most important effects and interactions of social capital. In this article we try to identify the interaction between social capital and human development in the provinces of Iran. To do this, we use vector autoregressive panel data for the period 2000-2009. The results show that social capital has a positive effect on human development in the Iran’s provinces. On the other side, human development will generate social capital strata in the country.

Keywords: PVAR, Social Capital, Human development, Vector autoregressive panel data

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