This paper examines how social capital can be increased in the city of Los Angeles. While many researches have focused on why social capital in such areas as economic development, poverty reduction, environment, this study elaborates the process of creating or increasing social capital in local governance. After decomposing social capital of two categories: cognitive part (trust) and structural part (networks), causal mechanism is made between two parts. For this study, the theoretical framework is constructed by using interaction, dialogue and diversity. This study employs a structural equation model (SEM). Through empirical results, diversity and interaction make a positive effect on networks of civic engagement. Furthermore, diversity and dialogue influence trust. Finally, networks (structural part) lead to trust (cognitive part) even though they are components of social capital.
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