Cultural Capital And Economic Development: Theoretical Analysis And Empirical Study

What is the source of economic development? Economists have been efforts to explore. Since Adam Smith, economists of different schools gave different answers. Classical economists generally think of resources is the most important factor of economic development; New classical economists argue that technological progress is the principal factor to promote economic development; New economic growth theory think of human capital promotes the technology progress, is the source of economic development; Later, institutional economists believe different systems can result in different economic effect.As you can see, the understanding to the source of economic development. However, to the institutional economics, How is the institurion set up so? Why can’t some international set up effective system? Economists begain focus on a kind of invisible rules-culture. How culture affects economic development? In this paper, the research aims to answer this question.Many scholars thought, culture and economy of alignment is higher and higher, cultures have similar to the role of capital in economic development, promotes the economic development. On this basis, it can be referred to as the cultural capital. This article thought cultural capital is the sum of, cultural capital is the sum of values, spirit, belief, human relations that it can supply value-added, it is also classified spiritual capital and structural capital.On the basis of "civilization"of culture and "petetrability"of capital, In this paper, the relationship between cultural capital and economic development are analyzed from two aspects of theory and practice. In empirical analysis, this paper choose entrepreneurship, trust, value as cultural capital agent variables, analyze the relation between them and economic development to reveal the relationship between cultural capital strength. In theoretical analysis, this paper illustrates the significance of cultural change for economic development, through to research the relation between cultural change and economic development in our country to reveal the cultural driving force of economic development and stagnation.In chapter3, first of all, the relationship between the cultural capital and entrepreneurship was analyzed, entrepreneurship can be understood as the accumulation of cultural capital, entrepreneurs can look as them with cultural capital, cultural capital through education or influence managers can influence entrepreneurship(Gao,2010). Then, analyzed the mechanism of entrepreneurial spirit to economic development. On the basis of the literature, this paper provides that through innovation or venture activities, entrepreneurship can affect economic development. Using related data of China’s31provinces from2005to2011, this paper inspected the relationship between entrepreneurship and economic development, regional entrepreneurship score and contribution to economic development. Results show that entrepreneurial spirit and contribution in our country is very uneven, respectively are the important factors that affect the regional development gap.In chapter4, first of all, defined the trust in the field of economics, mainly from the angle of system economics, information economics and game theory to discuss. Then, analyzed the mechanism of action of trust to economic development, Reducing the transaction cost, solve the problem of entrust-agent, reduce free riding have promoting effect on economic growth; There is also a factor to hinder economic development such as alliance against a government or heavily reliant on government and may hinder economic development. Then, this article test the relationship between trust level and economic development. Using trust level of31provinces surveied by Prof. Zhang (2002), the relationship between trust and per income growth rate, the actual use of foreign capital have carried on the empirical test, the results were positively correlated. Then, an empirical analysis of the impact of various factors on the level of trust, found the gap between rich and poor has an inverse relationship with social trust, education level, income level, property rights clarity, marketization level indicators are positively correlated with the trust relationship. These conclusions provide reference basis for improving the social trust. To be sure, the formation of trust is the result of long-term accumulation, not easy to change, so the empirical data and the empirical results have reliability.In chapter5, the connotation of values and mechanism of values to the economic development are expounded. This paper identity Kluckhohn’s (1951) definition:a view on whether things ’worth’, can affect people’s choices and actions, he calls the idea "value orientation". Researchers believe that values the effects on economic growth mainly through impact on institutional change, technological innovation, etc. Due to the values of the data is not easy to obtain, this paper select a new angle to analyze the relationship between economic development and discussion. First, some popular ideas within a period of the development of Chinese were introduced,. On this basis, combining with the change of the social value orientation, discuss the change direction of the development and put forward the principle of sustainable development, as the guiding ideology of economic development. In2005, the construction of "resource-conserving and environment-friendly" social development concept was put forward, this paper choose the economy, resources and environment data from2001to2010, to evaluate effect of the development of economic, ecological, a comprehensive assessment of the evaluation results in two periods can judge the values’impact on economic development. The coordination degree among economy-resources-environment system shows that the values have important affect on economic development, the active values should extented in society, supply the power for economic development.In chapter6, abiding feature of culture capital determined its important faction on economic development, cultural change can be defined as breakthrough to traditional cultural capital accumulation. The modern and the reform and opening up the cultural changes and the economic development in China is a historical retrospect and discussion, found that the inertia of the system culture inheritance and derived is the main cause of economic stagnation. In the process of culture evolution, institutional inertia tends to increase the cost of change, namely the culture cost. Only when the expected income change culture can bring greater than the culture cost, to be able to break the inertia of the system, complete the cultural change, meet the demands of economic development, institutional culture. Thus, cultural change is of great significance for economic development. Further, the mechanism analysis of cultural change to promote economic development, this path can be expressed as a cultural change, institutional change and economic development. Cultural change is driven through the influence of institutional change of system performance, the system change in the supply of factors, technological innovation, economic structure and the effective demand of economic development.Finally, according to the empirical results of cultural capital with the spirit of the relationship, trust,, values and and survey to the history of cultural change and economic development, this article from three aspects put forward the policy Suggestions to promote the economic development. In shaping the entrepreneurial spirit, including cultivate pioneering spirit, innovation spirit, improve the achievements transformation, optimize the industrial structure four aspects of the proposal. At the construction of social trust level, put forward from the economic, political, cultural, social four aspects put forward eight Suggestions improve the level of social trust. In popularizing sustainable values level, put forward to strengthen the education of sustainable development concept, improve the system of sustainable development policies, build three aspects of the legal system of the sustainable development suggestion. In the promotion of culture change, two aspects of suggestions were provided to promote cultural innovation and the weakening of inertial system.