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Accumulated social capital, institutional quality, and economic performance: Evidence from China

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  • Dong, Zhiqiang
  • Zhang, Yongjing

Abstract

This paper provides evidence from China that historically accumulated social capital affects the current economic performance by improving contemporary institutional quality. Using historical data, we employ the Elites Studying Abroad rates of the years 1847–1949 for each Chinese province as a proxy for accumulated social capital. Our empirical investigation shows that historically accumulated social capital strongly and significantly affects the current economic performance because it can improve current social capital and institutional quality. This argument is strongly robust across multiple controls such as geography information, climates, natural resources, historical economic conditions, and economic policies.

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  • Dong, Zhiqiang & Zhang, Yongjing, 2016. "Accumulated social capital, institutional quality, and economic performance: Evidence from China," Economic Systems, Elsevier, vol. 40(2), pages 206-219.
    • Handle: RePEc:eee:ecosys:v:40:y:2016:i:2:p:206-219
    DOI: 10.1016/j.ecosys.2016.01.002
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    2. Canh Phuc Nguyen & Nhi Ai Nguyen & Christophe Schinckus & Thanh Dinh Su, 2018. "The Ambivalent Role of Institutions in the CO2 Emissions: The Case of Emerging Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 7-17.
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    More about this item

    Keywords

    Social capital; Market-oriented reform; Economic performance; Long-term effect of history; China;
    All these keywords.

    JEL classification:

    • N85 - Economic History - - Micro-Business History - - - Asia including Middle East
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights

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