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Contacts, Social Capital and Market Institutions - A Theory of Development

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  • Paul Frijters
  • Dirk Bezemer
  • Uwe Dulleck

    (School of Economics and Finance, Queensland University of Technology)

Abstract

We propose an endogenous growth model, that incorporates both an individual and a communal aspect of Social Capital. In our model, output increases with the stock of business contacts (Relational Capital as one aspect of Social Capital). The modelling of contact creation is based on matching theory. The cost of creating contacts decreases with more Community level Social Capital and Market Institutions.

Suggested Citation

  • Paul Frijters & Dirk Bezemer & Uwe Dulleck, 2005. "Contacts, Social Capital and Market Institutions - A Theory of Development," Paul Frijters Discussion Papers 2005-1, School of Economics and Finance, Queensland University of Technology.
  • Handle: RePEc:qut:pfrijt:2005-1
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    File URL: http://www.bus.qut.edu.au/paulfrijters/documents/scp04may05.pdf
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    References listed on IDEAS

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    Cited by:

    1. Bezemer, Dirk & Dulleck, Uwe & Frijters, Paul, 2005. "Social Capital, Creative Destruction and Economic Development," Research Report 05C09, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    2. Paul Frijters & Dirk Bezemer & Uwe Dulleck, 2004. "Social Capital, Creative Destruction and Economic Growth," Paul Frijters Discussion Papers 2004, School of Economics and Finance, Queensland University of Technology.
    3. repec:dgr:rugsom:05c09 is not listed on IDEAS

    More about this item

    Keywords

    Social Capital; Endogenous Growth; Relational Capital; Development; Economic Systems;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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