Social Capital, Product Imitation and Growth with Learning Externalities
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 imi...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2013/09/18265391/social-capital-product-imitation-growth-learning-externalities http://hdl.handle.net/10986/15824 |
| Summary: | 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. |
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