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A simplified endogenous economic growth model with social capital: Evidence for Ecuador

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  • Moreno-Hurtado, Carlos Andres
  • Ochoa-Jimenez, Diego Alejandro
  • Izuierdo-Montoya, Gonzalo Leonardo

Abstract

The paper presents a simplified economic growth model with social capital, as an alternative for sustained long-term growth. The intuition behind the model suggests its application for developing economies that historically have focused their attention on the accumulation of physical capital and not on endogenous factors such as human capital and social capital. The model is considered as a Cobb-Douglas production function that includes three types of capital: physical, human and social. From the model, we obtain evidence from estimates for the Ecuadorian economy in the period 1980-2015, which underlie the main endogenous sources regarding physical capital. As a result, some policy implications are highlighted.

Suggested Citation

  • Moreno-Hurtado, Carlos Andres & Ochoa-Jimenez, Diego Alejandro & Izuierdo-Montoya, Gonzalo Leonardo, 2018. "A simplified endogenous economic growth model with social capital: Evidence for Ecuador," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 14(2), February.
    • Handle: RePEc:ags:pdcbeh:285150
    DOI: 10.22004/ag.econ.285150
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    More about this item

    Keywords

    Financial Economics;

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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