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The Productivity Effect of Social Capital

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  • Kiyoshi Mitsui
  • Jun Inoue

Abstract

Public investment is accumulated as social capital, which leads to improvements in the industrial base and contributes to private sector production. For example, productivity should rise in the transportation industry because of improvements to social capital such as highways, airports, and port facilities. Moreover, service industry productivity rises with improvements to social capital such as water and sewage facilities. Because such social capital is a good with major externalities, public policy intervenes in the supply process when private sector economic agents encounter supply problems, or when supplies are inadequate.

Suggested Citation

  • Kiyoshi Mitsui & Jun Inoue, 1997. "The Productivity Effect of Social Capital," Japanese Economy, Taylor & Francis Journals, vol. 25(3), pages 3-29.
    • Handle: RePEc:mes:jpneco:v:25:y:1997:i:3:p:3-29
    DOI: 10.2753/JES1097-203X25033
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    Cited by:

    1. Christopher N. Annala & Raymond G. Batina & James P. Feehan, 2008. "Empirical Impact Of Public Infrastructure On The Japanese Economy," The Japanese Economic Review, Japanese Economic Association, vol. 59(4), pages 419-437, December.

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