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

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Listed:
  • Carlos Andres Moreno-Hurtado,
  • Diego Alejandro Ochoa-Jimenez,
  • Gonzalo Leonardo,
  • Izquierdo-Montoya

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

  • Carlos Andres Moreno-Hurtado, & Diego Alejandro Ochoa-Jimenez, & Gonzalo Leonardo, & Izquierdo-Montoya, 2018. "A simplified endogenous economic growth model with social capital: Evidence for Ecuador," Business and Economic Horizons (BEH), Prague Development Center, vol. 14(2), pages 168-184, April.
    • Handle: RePEc:pdc:jrnbeh:v:14:y:2018:i:2:p:168-184
    DOI: 10.15208/beh.2018.14
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    More about this item

    Keywords

    Endogenous economic growth; physical capital; human capital; social capital; local development.;
    All these keywords.

    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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