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Modelling Social Capital And Growth

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  • Yuan K. Chou

Abstract

This paper proposes three theoretical growth models incorporating social capital, based on varied expositions on the concept of social capital and the empirical evidence gathered to date. In these models, social capital impacts growth by assisting in the accumulation of human capital, by affecting financial development through its effects on collective trust and social norms, and by facilitating networking between firms that result in the creation and diffusion of business and technological innovations. We solve for the optimum allocation of human capital or labor towards social capital formation in each model, and examine their comparative statics and transitional dynamics.

Suggested Citation

  • Yuan K. Chou, 2002. "Modelling Social Capital And Growth," Department of Economics - Working Papers Series 865, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:865
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    File URL: http://www.economics.unimelb.edu.au/downloads/wpapers-02/865.pdf
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    References listed on IDEAS

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    Cited by:

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    2. Juan Gabriel Brida & Silvia London & Mara Rojas, 2013. "A Dynamic Model of Tourism and Economic Growth: the Role of Physical and Human Capital," Economics Bulletin, AccessEcon, vol. 33(2), pages 1361-1373.

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