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on Financial Development and Growth |
| By: | Agenor, Pierre-Richard; Dinh, Hinh T. |
| Abstract: | 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. |
| Keywords: | Political Economy,Economic Theory&Research,Debt Markets,Social Capital,Emerging Markets |
| Date: | 2013–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6607&r=fdg |
| By: | Nicholas Crafts (Dept of Economics, University of Warwick); Kevin H. O'Rourke (All Souls College, Oxford) |
| Abstract: | This paper surveys the experience of economic growth in the 20th century with a focus on technological change at the frontier together with issues related to success and failure in catch-up growth. A detailed account of growth performance based on historical national accounts data is given and is accompanied by a review of growth accounting evidence on the sources of economic growth. The key features of our analysis of divergence in growth outcomes are an emphasis on the importance of ‘directed’ technical change, of institutional quality, and of geography. We provide brief case studies of the experience of individual countries to illustrate these points. |
| Keywords: | catch-up growth; divergence; growth accounting; technical change. |
| JEL: | N10 O33 O43 O47 |
| Date: | 2013–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:nuf:esohwp:_117&r=fdg |