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Growth Strategy with social Capital and Physical Capital- Theory and Evidence: the Case of Vietnam


  • Cuong Le Van

    () (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, IPAG Business School, VCREME - Van Xuan Center of Research in Economics, Management and Environment)

  • Anh Ngoc Nguyen

    () (DEPOCEN - Development and Policies Research Center)

  • Ngoc-Minh Nguyen

    () (DEPOCEN - Development and Policies Research Center)


We study the impact of social capital in both simple theoretical and empirical model with the main assumption is the price of physical capital is a decreasing function of social capital. In our theoretical model, there exists a critical value such that firm will not invest in social capital if its saving is lower than the critical value and otherwise. Moreover, the output depends positively and non-linearly on the social capital. Our empirical model that captures the impact of physical capital, human capital, and social capital using the database from Survey of Small and Medium Scale Manufacturing Enterprises (SMEs) in Vietnam 2011, confirms the conclusions of the theoretical model.

Suggested Citation

  • Cuong Le Van & Anh Ngoc Nguyen & Ngoc-Minh Nguyen, 2014. "Growth Strategy with social Capital and Physical Capital- Theory and Evidence: the Case of Vietnam," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01021376, HAL.
  • Handle: RePEc:hal:cesptp:halshs-01021376
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    References listed on IDEAS

    1. John F. Helliwell & Robert D. Putnam, 1995. "Economic Growth and Social Capital in Italy," Eastern Economic Journal, Eastern Economic Association, vol. 21(3), pages 295-307, Summer.
    2. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1251-1288.
    3. Amir, Rabah, 1996. "Sensitivity analysis of multisector optimal economic dynamics," Journal of Mathematical Economics, Elsevier, vol. 25(1), pages 123-141.
    4. Beugelsdijk, Sjoerd & van Schaik, Ton, 2005. "Social capital and growth in European regions: an empirical test," European Journal of Political Economy, Elsevier, vol. 21(2), pages 301-324, June.
    5. Annen, Kurt, 2003. "Social capital, inclusive networks, and economic performance," Journal of Economic Behavior & Organization, Elsevier, vol. 50(4), pages 449-463, April.
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    More about this item


    social capital; optimal growth; croissance optimale; capital social;
    All these keywords.

    JEL classification:

    • Z1 - Other Special Topics - - Cultural Economics
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • O00 - Economic Development, Innovation, Technological Change, and Growth - - General - - - General

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