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Social capital, product imitation and growth with learning externalities

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  • Agenor, Pierre-Richard
  • Dinh, Hinh T.

Abstract

Links between social capital, human capital, and product imitation are studied in an overlapping generations model of endogenous growth where the key benefit of social capital is to promote imitation. There is also a two-way interaction between imitation and human capital. Building social capital (which brings direct utility) requires time. Because life expectancy is endogenously related to human capital, time allocation between market work and social capital accumulation is also endogenously determined. Social capital accumulation depends also on access to infrastructure. The model is calibrated numerically for a low-income country. A policy that helps to promote social capital accumulation may be very effective to foster economic growth, even if it involves offsetting cuts in other productive components of government spending, such as education outlays or infrastructure investment. Offsetting cuts in infrastructure investment, however, may be less effective.

Suggested Citation

  • Agenor, Pierre-Richard & Dinh, Hinh T., 2013. "Social capital, product imitation and growth with learning externalities," Policy Research Working Paper Series 6607, The World Bank.
    • Handle: RePEc:wbk:wbrwps:6607
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    3. Barış Alpaslan, 2017. "Are Human and Social Capital Linked? Evidence from India," Metroeconomica, Wiley Blackwell, vol. 68(4), pages 859-881, November.
    4. Agénor, Pierre-Richard & Neanidis, Kyriakos C., 2015. "Innovation, public capital, and growth," Journal of Macroeconomics, Elsevier, vol. 44(C), pages 252-275.
    5. Barış Alpaslan & Julide Yildirim, 2020. "The Missing Link: Are Individuals with More Social Capital in Better Health? Evidence from India," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(3), pages 811-834, August.
    6. Iryna Kalenyuk & Liudmyla Tsymbal, 2021. "Assessment of the intellectual component in economic development," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(6), pages 4793-4816, June.
    7. Bo-Xiang Hsu & Yi-Min Chen, 2019. "Industrial policy, social capital, human capital, and firm-level competitive advantage," International Entrepreneurship and Management Journal, Springer, vol. 15(3), pages 883-903, September.
    8. 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).
    9. Ngawang Dendup & Dil Bahadur Rahut & Yayue Xiao, 2025. "Short-run impact of electricity on social capital: evidence from a rural electricity program," Empirical Economics, Springer, vol. 68(1), pages 281-325, January.
    10. Panagiota Makrychoriti & Fotios Pasiouras & Menelaos Tasiou, 2022. "Financial stress and economic growth: The moderating role of trust," Kyklos, Wiley Blackwell, vol. 75(1), pages 48-74, February.
    11. Baris Alpaslan, 2015. "Public Spending and Transitional Dynamics of an Innovation-Based Growth Model," Centre for Growth and Business Cycle Research Discussion Paper Series 199, Economics, The University of Manchester.
    12. Pierre-Richard Agénor & Nihal Bayraktar, 2020. "Aid Volatility, Human Capital, and Growth," Journal of Human Capital, University of Chicago Press, vol. 14(3), pages 401-448.
    13. Hung Quang Doan & Francesca Masciarelli & Andrea Prencipe & Nam Hoang Vu, 2023. "Social capital and firm performance in transition economies," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(4), pages 751-780, December.

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