The Analysis Of Macro Effect Of Social Capital On Economic Growth

Economic growth is the core of macroeconomic analysis, the efforts of economists to exploring is to looking for national wealth and economic growth in nature. whether the classical economic growth theory which focus on material production and accumulation, or the neo-classical growth theory which focus on Exogenous technological progress, or the endogenous growth theory which focus on endogenous technological progress represented by Romer, is to find out the source of economic growth. By previous research, physical capital,human capital and technology has been considered a key factor in national economic growth. Meanwhile, a national policy, the external environment of the country and the impact of international economic situation will also become an important factor which may affect the economy. With the development of national economies, the economic growth of some countries can not explain by the economic theory. There are still some unknown factors which has a significant impact on country's economic growth.The concept of social capital was first proposed by Hanifan, and then lead into sociology by Bourdieu, and spread by coleman, which attracted the attention of scholars in various fields. such as political economic,educational and cultural, become the focus problem of many discipline to study. With the social capital was introduced in economic field. Economists are focus on the relationship between social capital and economic growth. Social capital is to be an independent factor with physical capital and human capital, which can explain a particular region or country's differences between social capital and economic growth. Since 1980s, research papers indicate that social capital has a strong explanation on economic growth, but in existing literature, most of papers are focus on micro-level, study the impact of social capital and main micro-economic. such as household, company. Rarely study from the macro-level of social capital on economic growth. So starting from macro-level is to be a good idea, and has some creative idea. For one thing, we sort of the literature of how the social capital affect macro economic growth. And summarize the article ideas which focus on, and analysis their focus of debate. For another, we choose proper model to establish production function with social capital embedded in it; then we use the world's major national data and domestic provinces data to analysis, testing whether has a significant correlation between social capital and economic growth, and testing whether the correlation is different from region in China. The various chapters of the various parts of the main contents are as follows:Chapter-1 is introduction. First, from an academic background and practical significance, this article describes the research background, meaning; Secondly, it introduces the research idea and structure; At last, it introduces the methods used in this paper.Chapter-2 is literature review. The main work is defining the macro-social capital. Due to the current macro-definition of the concept of social capital is still controversial, so we must definite the concept of social capital first, starting from the perspective of sociology and economics, and analysis the difference between the two ways, combining the focus of this article, summary this paper's definition of social capital. As the part in economic growth theory, some views are relatively mature. So we try to use this new idea that making the social capital embedded in production function.Chapter-3 is the theoretical analysis about the effect between social capital and economic growth. This chapter solve two question. Firstly, Sort of the pathway about macro social capital on economic growth. Secondly, we develop the MRW model, making the social capital embedded in production function, and then using the new model in Empirical analysis.Chapter-4 is the empirical analysis of the social capital effect on economic growth. Firstly, we use the world's major countries cross-sectional data, testing in Chapter-3's model, comparing the two model's result which embedded and without embedded social capital in production function. And analysis whether social capital has a significant impact on economic growth. Secondly, we use panel data in China provinces to make model, analyzing the different effects of social capital between regions. The result indicate that social capital has a significant impact on economic growth, and has a significant different effects between regions. There is a weak effects in coastal areas. There is a strong effects in central and northeast, such as old industrial areas. As the backward western regions, it is difficult to build the network of social capital, which is limit the efficiency of social capital.Chapter-5 is the empirical analysis and policy recommendations. First of all, this part gives a whole summary through the conclusions from the theoretical analysis and conclusions of quantitative analysis. Secondly, it puts forward corresponding polical recommendations based on the conclusions of this article with social capital. Lastly, this study pointed out the inadequacy and the need of further research.P.S:this study is sponsored by Macroeconomic Measure of Social Capital and Its Application, which is a national social science fund project chaired by professor Nie.