This paper aims to understand how Internet users may improve their social capital by investing in online social activities. We argue that the Internet can be a convenient and efficient means of maintaining existing social ties and/or of creating new ties. We seek to identify the determinants of online investments in social capital and the nature of the interaction with traditional forms of investment in social capital. Using a Luxembourg household survey, the econometric results reveal a significant positive impact of volunteer activities and trust (two measures of social capital) on online investments to maintain social capital, but more ambiguous results are found between online investments and face-to-face contacts with friends. By contrast, online investments to create new ties are poorly related to the Internet users' existing social capital, but depend on the opportunity cost of time. JEL: L86, Z13
Pénard and Poussing have analyzed and formulated several hypothesis concerning Internet use and the development of social capital REF , having revealed that there is a significant positive impact both in terms of increase in volunteer activities and in terms of trustworthiness in online investments, concerning well established social capital ties.
Internet use and social capital: The strength of virtual ties
Journal of Economic Issues
Business Economics