The Analysis Of Macro Effect Of Social Capital On Economic Growth

Economics is the subject which explores the nature of the national wealth and the origin of growth. Therefore, explaining the reasons of the economic development and the mechanism of economic prosperity are its fundamental tasks. As it is said by James Tobin:"Growth is a fascinated and fascinating question that always attracts economic scholar:whether it is now and in the future." So far, economists have been dedicated to this task. They put forward many ideas from a different point of view. it forms the basic consensus about economic development which we study today. Monetary capital, physical capital, technology capital, human capital has been considered to be a key factor in national economic development successively. Formal institutional arrangements have also been seen as a necessary condition for economic development. Why do some countries or regions which lack physical capital (machines, equipment, funds, etc.) were able to rapidly rise? Why do some countries which have the same quantity and quality of physical capital and human capital and own similar institution have different economic performance? It seems that there are also some factors that are unknown to us affect the country’s economic growth in the real economy and society.Social capital is an important concepts and analytical tools of science in contemporary Western society, the concept of social capital and its research paradigm is an important breakthrough in today’s economics and sociological research content and methods. Social capital raised by economists and sociologists is the improvement and innovation of the capital structure which can promote the economic and social development. Since 80’s of the 20th century, many economists recognized the impact of social capital on economic growth and a large number of studies emerge which describe the relationship between social capital and economic growth in theoretical and empirical research literature. There are relevant studies have shown that, whether as a micro individual or as the macro entity social capital play an active role in promoting economic development of well-being index.It seems social capital is a stronger explanatory power of the analysis tools in explaining the economic growth. In China’s current development environment, with rapid economic growth, institutional reform and improve continuously, the traditional physical capital and human capital have been unable to explain all economic phenomena. From the perspective of social capital to explore the performance of the economic growth is undoubtedly an attempt to be more innovative. However, in generally speaking, most of the literatures which study the promoting influence of social capital on economic growth are the micro-level analysis. That is, they are studies describe the impacts of social capital on micro-level individuals of macroeconomics such as households and enterprises. There are less documents analysis the promoting impacts of macro-level social capital on economic growth from the country or macro-level perspective. For that,on the one hand, this article analysis the ways and means by which macro-level influences economic growth positively. On this basic, we build up product function which is embedded in social capital. On the other hand, starting from the data of Chinese 30 provinces, municipalities, autonomous regions between 2003 and 2007,use the econometric analysis method of panel data to improve that macro-level social capital have the positive influences on economic growth. The various chapters of the various parts of the main contents are as follows:Chapter-1 is introduction. Firstly, this article introduces the research background, meaning followed by a brief account of the research ideas of this study as well as the structure of the chapter is set explained; and finally, we describe the research methods used in this article.Chapter-2 is the proposal of the concept of macro-level social capital. Because social capital is an interdisciplinary, multi-layered concept, in order to us to understand the concept of social capital better, I review the different understanding’of the concept of social capital in economics. politics and economics first, and focus on the understanding of social capital in the perspective of economics. Further, we introduce social capital according to its different methods of classification levels. Finally, on the basis of comments of the domestic and foreign macroeconomic literature of social capital, author gives the definition of macro-level social capital in this paper. Chapter-3 is the theoretical development for economic growth. This chapter introduces the history of the development of economic growth theory, we analysis the different stages of economic growth theory’s ideas, features, models and their shortcomings with the combination of different scholars, Meanwhile, we consider the analytical framework of social capital into economic growth theory as the theory of economic growth, new development, then introduced the ideas and analytical thinking of this new development.Chapter-4 introduces the social capital’s macro-level economic growth effects.As is known to all, in economics the basis of macroeconomics is microeconomics, macroeconomics is the integration and comprehensive of the micro. Therefore, the way the micro-level social capital works on economic growth may also apply to macro-level social capital. Therefore, we arrange the promoting ways of the micro-social capital on economic growth. Secondly, this paper analyzed the existing literature about macro-level social capital on economic growth mode of action. Finally, after a comprehensive analysis, I believe that the impact of macro-level social capital on economic growth can be divided into direct and indirect effects. At the same time, author take these two kinds of responses into the economic growth model, that is setting up the production function embedded in social capital.Chapter-5 is the empirical analysis. The empirical results show that at the macro level, the physical capital plays the greatest role in promoting economic growth, social capital on economic growth has a positive role and the role is obvious. Although human capital have a certain role in promoting economic growth, the effect is not obvious.Chapter-7 is the main conclusions 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.