Social Capital as an Engine of Growth: Multisectoral Modelling and Implications

Youyou Baende Bofota, Raouf Boucekkine (raouf.boucekkine@univ-amu.fr) and Alain Pholo Bala (alain.pholobala@minfin.fed.be)
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Youyou Baende Bofota: IRES - Institute for Economic and Social Research - UCL - Université Catholique de Louvain = Catholic University of Louvain

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Abstract: We propose a multisector endogenous growth model incorporating social capital. Social capital only serves as input in the production of human capital and it involves a cost in terms of the final good. We show that in contrast to existing alternative specifications, this setting assures that social capital enhances productivity gains by playing the role of a timing belt driving the transmission and propagation of all productivity shocks throughout society whatever the sectoral origin of the shocks. Further econometric work is conducted in order to estimate the contribution of social capital to human capital formation. We find that depending on the measure of social capital considered, the elasticity of human capital to social capital varies from 6% to 10%. Finally we investigate the short-term dynamics and imbalance effects properties of the models depending on the value of this elasticity (taking the Lucas-Uzawa model as a limit case). In particular, it's shown that when the substitutability of social capital to human capital increases, the economy is better equipped to surmount initial imbalances as individuals may allocate more working time in the final goods sector without impeding economic growth.

Keywords: social capital; imbalance effects; human capital; economic growth (search for similar items in EconPapers)
Date: 2012-03
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00790855
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: SOCIAL CAPITAL AS AN ENGINE OF GROWTH: MULTISECTORAL MODELING AND IMPLICATIONS (2016)
Working Paper: Social Capital as an Engine of Growth: Multisectoral Modeling and Implications (2016)
Working Paper: Social Capital as an Engine of Growth. Multisectoral Modelling and Implications (2012)
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