The Analysis of Interaction between Collaborative and Qarz Al-hasanah Contracts and Social Capital in Iran

In this research, the interaction and the causal relationship between Collaborative and Qarz Al-hasanah Contracts on one hand and social capital on the other hand, have been tested and analyzed using the Toda-Yamato causality approach and the statistical data of years 1984 to 2016. The empirical findings of this research indicate that there is a one-way causal relationship between Collaborative and Qarz Al-hasanah Contracts on one hand and social capital on the other hand. In other words, during the study period, the change in social capital has affected the conditions of the development of the contracts by influencing the trust and confidence environment, changing the information networks, changing the information asymmetry and the risk associated with the deposits of Islamic banking contracts. But the effects outcome of these contracts on income distribution, poverty, inflation, economic security and human capital have not been such as to trigger significant changes in social capital in the country through the mechanisms mentioned.