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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.

Suggested Citation

  • 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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    Cited by:

    1. Bengoa, Marta & Román, Valeriano Martínez-San & Pérez, Patricio, 2017. "Do R&D activities matter for productivity? A regional spatial approach assessing the role of human and social capital," Economic Modelling, Elsevier, vol. 60(C), pages 448-461.
    2. Weiwei Liu & Xiandong Xu & Zhile Yang & Jianyu Zhao & Jing Xing, 2016. "Impacts of FDI Renewable Energy Technology Spillover on China’s Energy Industry Performance," Sustainability, MDPI, Open Access Journal, vol. 8(9), pages 1-16, August.

    More about this item

    Keywords

    Social capital; Market-oriented reform; Economic performance; Long-term effect of history; China;

    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 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy

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