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 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.

Bibliographic Details

Main Authors:	Agénor, Pierre-Richard, Dinh, Hinh T.
Language:	English en_US
Published:	World Bank, Washington, DC 2013-09
Subjects:	ACCESS TO SOCIAL CAPITAL, ACCESS TO TELECOMMUNICATIONS, ADVERSE EFFECT, ADVERSE EFFECTS, AGGREGATE DEMAND, ALLOCATION, ARBITRAGE, BANK POLICY, BENCHMARK, BEQUESTS, BINDING CONSTRAINT, BONDS, BUDGET CONSTRAINT, BUDGET CONSTRAINTS, BUREAUCRACY, BUSINESS CYCLE, CAPITAL RATIO, CAPITAL SHARES, CAPITAL STOCK, CAPITAL STOCKS, CETERIS PARIBUS, CHILD LABOR, COLLECTIVE ACTION, COMMERCIAL CONTRACTS, COMMUNITY ASSOCIATIONS, CONNECTIVITY, CONSTANT RETURNS TO SCALE, CONTRACT ENFORCEMENT, DEBTS, DEMAND CURVE, DEMOCRACY, DEMOGRAPHIC, DEVELOPING COUNTRIES, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICY, DISCOUNT RATE, ECONOMIC ACTIVITY, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC INTEGRATION, ECONOMIC PERFORMANCE, ECONOMIC RESEARCH, ECONOMICS, ELASTICITY, ELASTICITY OF DEMAND, ELASTICITY OF SUBSTITUTION, EQUILIBRIUM, EQUILIBRIUM PRICE, EQUIPMENT, EXPENDITURE, EXPORTS, EXTERNALITIES, EXTERNALITY, FINANCES, FINANCIAL DEVELOPMENT, FINANCIAL SUPPORT, FISCAL POLICY, FULL EMPLOYMENT, GDP, GLOBAL ECONOMIC PROSPECTS, GOVERNMENT BUDGET, GOVERNMENT INVESTMENT, GOVERNMENT REVENUES, GOVERNMENT SPENDING, GROWTH RATE, GROWTH RATES, HOLDING, HOUSEHOLD BARGAINING, HUMAN CAPITAL, IMPERFECT COMPETITION, INCOME, INCOME DISTRIBUTION, INCOME GROWTH, INCOME INEQUALITY, INDUSTRIAL COUNTRIES, INFORMATION ASYMMETRIES, INFORMATION SHARING, INFRASTRUCTURE INVESTMENT, INFRASTRUCTURE PROJECTS, INSURANCE, INTANGIBLE, INTELLECTUAL PROPERTY, INTERNATIONAL BANK, INTERNATIONAL ECONOMICS, INVESTING, INVESTMENT FLOWS, INVESTMENT STRATEGIES, KNOWLEDGE EXTERNALITIES, LABOR HOURS, LABOR MARKET, LEGAL SYSTEM, LIFE EXPECTANCY, LOW-INCOME COUNTRIES, LOW-INCOME COUNTRY, LOW-INCOME ECONOMY, MACROECONOMICS, MARGINAL COST, MARGINAL COST OF PRODUCTION, MARGINAL PRODUCT, MARGINAL REVENUE, MONETARY FUND, MONOPOLY, NEGATIVE EXTERNALITY, NEIGHBORHOODS, NEW PRODUCTS, OPTIMIZATION, OUTPUT, OVERLAPPING GENERATIONS MODEL, PATENTS, PHYSICAL CAPITAL, POLITICAL ECONOMY, POLITICAL INSTITUTIONS, POSITIVE EXTERNALITIES, POSITIVE EXTERNALITY, PRICE ELASTICITY, PRIVATE CAPITAL, PRIVATE CAPITAL STOCK, PRIVATE INVESTMENT, PRIVATE SAVINGS, PRODUCTION FUNCTION, PRODUCTION INPUTS, PRODUCTION STRUCTURE, PRODUCTIVITY, PROPERTY RIGHTS, PUBLIC GOOD, PUBLIC INVESTMENT, PUBLIC POLICIES, PUBLIC POLICY, PUBLIC SPENDING, RATE OF RETURN, REAL GDP, RETURNS, SAVINGS, SAVINGS RATE, SOCIAL CAPITAL, SOCIAL CAPITAL ACCUMULATION, SOCIAL INTERACTIONS, SOCIAL NETWORKS, SOCIAL NORMS, SOCIAL ORGANIZATIONS, SOCIAL RELATIONSHIPS, SOCIAL STRUCTURE, SOCIAL VALUES, SPECIALIZATION, TAX, TAX RATE, TAX REVENUES, TECHNOLOGICAL CHANGE, TELECOMMUNICATIONS, TRADE ASSOCIATIONS, TRADE-OFF, TRADES, TRADING, TRANCHES, URBANIZATION, WAGES,
Online Access:	http://documents.worldbank.org/curated/en/2013/09/18265391/social-capital-product-imitation-growth-learning-externalities https://hdl.handle.net/10986/15824
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