The Impact of Heterogeneity and Size of Community on Social Capital: A Quantitative Analysis of Spa Resorts in Japan

This paper examines the relationship between the social characteristics (heterogeneity and size of community) and the levels of social capital in spa resort areas in Japan. The data is obtained from 56 areas. In each area, data on inns that belong to a local inn union have been collected. As these inns have large influence in their local areas, they are interpreted as representatives of the area. Heterogeneity in each area is measured by the Gini coefficient of the inns' accommodations. The size of a spa resort is measured by the total number of inns within the resort area. We examine three different types of social capital: activities of self-government, activities of inn unions, and activities of the local festival. The aims of the activities of self-government are very wide and general, while the aim of the activities of inn unions is specific, i.e., to increase profit. The aim of the local festival is to succeed as an annual religious event. By conducting regression analyses, we obtain the following findings: (1) there is a negative association between the Gini coefficient and the level of self-government activities, and (2) there is a negative association between union size and the level of activities of inn unions. The implications of these results are discussed by considering the range of aims and communication costs.