IDEAS home Printed from https://ideas.repec.org/a/taf/rsocec/v69y2011i4p465-493.html

An Endogenous Growth Model with Human and Social Capital Interactions

Author

Listed:
  • Tiago Neves Sequeira
  • Alexandra Ferreira-Lopes

Abstract

Social capital has recently been introduced in the economic literature as a source of economic growth. In this paper we study the interactions between social and human capital, and their contributions to economic growth in an endogenous growth model. The model indicates an increase in the relative importance of human capital when compared to social capital throughout the development process of the economy, as also described in some of the empirical literature on the topic. We derive theoretical and policy implications from our endogenous growth model, concluding that a subsidy for human capital has important implications for economic growth and allocation redistribution. A subsidy to social capital is not relevant for economic growth. Its only effect would be the increase in the social to human capital ratio of the economy.

Suggested Citation

  • Tiago Neves Sequeira & Alexandra Ferreira-Lopes, 2011. "An Endogenous Growth Model with Human and Social Capital Interactions," Review of Social Economy, Taylor & Francis Journals, vol. 69(4), pages 465-493, December.
    • Handle: RePEc:taf:rsocec:v:69:y:2011:i:4:p:465-493
    DOI: 10.1080/00346764.2011.592330
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00346764.2011.592330
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00346764.2011.592330?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Funke, Michael & Strulik, Holger, 2000. "On endogenous growth with physical capital, human capital and product variety," European Economic Review, Elsevier, vol. 44(3), pages 491-515, March.
    2. Angelo Antoci & Fabio Sabatini & Mauro Sodini, 2009. "The fragility of social capital," Department of Economics University of Siena 551, Department of Economics, University of Siena.
    3. Tamura, Robert, 2006. "Human capital and economic development," Journal of Development Economics, Elsevier, vol. 79(1), pages 26-72, February.
    4. Brunner, Martin & Strulik, Holger, 2002. "Solution of perfect foresight saddlepoint problems: a simple method and applications," Journal of Economic Dynamics and Control, Elsevier, vol. 26(5), pages 737-753, May.
    5. Niclas Berggren & Mikael Elinder & Henrik Jordahl, 2008. "Trust and growth: a shaky relationship," Empirical Economics, Springer, vol. 35(2), pages 251-274, September.
    6. Bartolini, Stefano & Bonatti, Luigi, 2008. "Endogenous growth, decline in social capital and expansion of market activities," Journal of Economic Behavior & Organization, Elsevier, vol. 67(3-4), pages 917-926, September.
    7. Sjoerd Beugelsdijk & Henri L.F. de Groot & Anton B.T.M. van Schaik, 2004. "Trust and economic growth: a robustness analysis," Oxford Economic Papers, Oxford University Press, vol. 56(1), pages 118-134, January.
    8. Antoci, Angelo & Sabatini, Fabio & Sodini, Mauro, 2009. "The fragility of social capital," AICCON Working Papers 59-2009, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    9. Alberto Bisin & Danilo Guaitoli, "undated". "Social Capital, Modernization and Growth," UFAE and IAE Working Papers 545.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    10. Barbara Piazza-Georgi, 2002. "The role of human and social capital in growth: extending our understanding," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 26(4), pages 461-479, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jennings, Colin & Sanchez-Pages, Santiago, 2017. "Social capital, conflict and welfare," Journal of Development Economics, Elsevier, vol. 124(C), pages 157-167.
    2. Antoci, Angelo & Guerrini, Luca & Sodini, Mauro & Zarri, Luca, 2014. "A two-sector model of economic growth with social capital accumulation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 53(C), pages 56-65.
    3. Agénor, Pierre-Richard & Dinh, Hinh T., 2015. "Social capital, product imitation and growth with learning externalities," Journal of Development Economics, Elsevier, vol. 114(C), pages 41-54.
    4. Pham Tan Hoa & Le Thanh Liem & Nguyen Kim Phuoc, 2016. "Human development index impact on economic growth," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 6(1), pages 3-13.
    5. Kim, Yong Jin & Lee, Chul-In, 2015. "Social values and economic dynamics," Journal of Economic Dynamics and Control, Elsevier, vol. 53(C), pages 69-84.
    6. Alonso-Carrera, Jaime & Bouché, Stéphane & de Miguel, Carlos, 2021. "Revisiting the process of aggregate growth recovery after a capital destruction," Journal of Macroeconomics, Elsevier, vol. 68(C).
    7. Bofota, Youyou Baende & Boucekkine, Raouf & Bala, Alain Pholo, 2016. "Social Capital As An Engine Of Growth: Multisectoral Modeling And Implications," Macroeconomic Dynamics, Cambridge University Press, vol. 20(8), pages 2093-2122, December.
    8. Roseta-Palma, Catarina & Ferreira-Lopes, Alexandra & Sequeira, Tiago Neves, 2010. "Externalities in an endogenous growth model with social and natural capital," Ecological Economics, Elsevier, vol. 69(3), pages 603-612, January.
    9. Catarina Roseta-Palma & Alexandra Ferreira-Lopes & Tiago Neves Sequeira, 2008. "Towards an Inclusive Model of Sustainable Growth," Working Papers Series 1 ercwp0408, ISCTE-IUL, Business Research Unit (BRU-IUL).
    10. Sistelo, Marta & Mazeda Gil, Pedro, 2025. "Culture & social capital: creation of human capital and economic growth," MPRA Paper 126644, University Library of Munich, Germany, revised Oct 2025.
    11. Angelo Antoci & Fabio Sabatini & Mauro Sodini, 2013. "Economic Growth, Technological Progress and Social Capital: The Inverted U Hypothesis," Metroeconomica, Wiley Blackwell, vol. 64(3), pages 401-431, July.
    12. Afonso, Óscar & Sochirca, Elena & Neves, Pedro Cunha, 2025. "Robots and humans: The role of fiscal and monetary policies in an endogenous growth model," Mathematical Social Sciences, Elsevier, vol. 133(C), pages 49-59.
    13. Moreno-Hurtado, Carlos Andres & Ochoa-Jimenez, Diego Alejandro & Izuierdo-Montoya, Gonzalo Leonardo, 2018. "A simplified endogenous economic growth model with social capital: Evidence for Ecuador," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 14(2), February.
    14. Amavilah, Voxi Heinrich, 2014. "Knowledge = Technology + Human Capital and the Lucas and Romer Production Functions," MPRA Paper 58847, University Library of Munich, Germany.
    15. Fabio Manca, 2012. "Human Capital Composition and Economic Growth at the Regional Level," Regional Studies, Taylor & Francis Journals, vol. 46(10), pages 1367-1388, November.
    16. Amavilah, Voxi Heinrich, 2014. "Human Knowledge and a Commonsensical Measure of Human Capital: A Proposal," MPRA Paper 57670, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sistelo, Marta & Mazeda Gil, Pedro, 2025. "Culture & social capital: creation of human capital and economic growth," MPRA Paper 126644, University Library of Munich, Germany, revised Oct 2025.
    2. Sabatini, Fabio, 2006. "The Empirics of Social Capital and Economic Development: A Critical Perspective," Knowledge, Technology, Human Capital Working Papers 12097, Fondazione Eni Enrico Mattei (FEEM).
    3. Manuel A. Gómez, 2012. "Equilibrium Dynamics Of An Endogenous Growth Model With An Erosion Effect And Duplication In R&D," Manchester School, University of Manchester, vol. 80(6), pages 700-717, December.
    4. Iacopetta, Maurizio, 2010. "Phases of economic development and the transitional dynamics of an innovation-education growth model," European Economic Review, Elsevier, vol. 54(2), pages 317-330, February.
    5. Tiago Neves Sequeira, 2008. "Transitional Dynamics Of An Endogenous Growth Model With An Erosion Effect," Manchester School, University of Manchester, vol. 76(4), pages 436-452, July.
    6. Catarina Roseta-Palma & Alexandra Ferreira-Lopes & Tiago Neves Sequeira, 2008. "Towards an Inclusive Model of Sustainable Growth," Working Papers Series 1 ercwp0408, ISCTE-IUL, Business Research Unit (BRU-IUL).
    7. Fabio Sabatini, 2005. "The empirics of social capital and economic development. A critical perspective," Development and Comp Systems 0512015, University Library of Munich, Germany.
    8. Angelo Antoci & Mauro Sodini & Luca Zarri, 2014. "Relational consumption and nonlinear dynamics in an overlapping generations model," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 37(1), pages 137-158, April.
    9. Fabio Sabatini, 2005. "The empirics of social capital and economic development: a critical perspective," Development and Comp Systems 0512008, University Library of Munich, Germany.
    10. Oasis Kodila-Tedika & Julius Agbor, 2016. "Does Trust Matter for Entrepreneurship: Evidence from a Cross-Section of Countries," Economies, MDPI, vol. 4(1), pages 1-17, March.
    11. Chen, Xi & Funke, Michael, 2013. "The dynamics of catch-up and skill and technology upgrading in China," Journal of Macroeconomics, Elsevier, vol. 38(PB), pages 465-480.
    12. Tiago Sequeira, 2012. "Facts and distortions in an endogenous growth model with physical capital, human capital and varieties," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 11(3), pages 171-188, December.
    13. Kostakis, Ioannis & Lolos, Sarantis & Doulgeraki, Charikleia, 2020. "Cultural Heritage led Growth: Regional evidence from Greece (1998-2016)," MPRA Paper 98443, University Library of Munich, Germany.
    14. Elert, Niklas & Stam, Erik & Stenkula, Mikael, 2019. "Intrapreneurship and Trust," Working Paper Series 1280, Research Institute of Industrial Economics.
    15. Tiago Sequeira, 2004. "Mortality Rate and Property Rights in a Model with Human Capital and R&D," Development and Comp Systems 0408010, University Library of Munich, Germany.
    16. Mikucka, Malgorzata & Sarracino, Francesco & Dubrow, Joshua K., 2017. "When Does Economic Growth Improve Life Satisfaction? Multilevel Analysis of the Roles of Social Trust and Income Inequality in 46 Countries, 1981–2012," World Development, Elsevier, vol. 93(C), pages 447-459.
    17. D’Hernoncourt, Johanna & Méon, Pierre-Guillaume, 2012. "The not so dark side of trust: Does trust increase the size of the shadow economy?," Journal of Economic Behavior & Organization, Elsevier, vol. 81(1), pages 97-121.
    18. Simplice Asongu & Oasis Kodila-tedika, 2017. "Trust and Growth Revisited," Economics Bulletin, AccessEcon, vol. 37(4), pages 2951-2961.
    19. Antonio C. David & Carmen A. Li, 2010. "Exploring the links between HIV|AIDS, social capital and development," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(7), pages 941-961.
    20. Roseta-Palma, Catarina & Ferreira-Lopes, Alexandra & Sequeira, Tiago Neves, 2010. "Externalities in an endogenous growth model with social and natural capital," Ecological Economics, Elsevier, vol. 69(3), pages 603-612, January.

    More about this item

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rsocec:v:69:y:2011:i:4:p:465-493. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RRSE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.