Mitigating Dualism and Exploiting the Interplay of Policy-Social Capital

The centripetal forces of agglomeration, reflected among others in the structure of the economy and the nature of interrelations among regions (interregional multipliers), limit the effectiveness of spatial policies. Meanwhile, the importance of social capital is revealed from the MSE survey. Social planners could improve the design of policies by understanding the perceptions and aspirations of MSEs to make any measures more compatible with the prevailing social capital.