The Effect Analysis And Regional Difference Of Cultural Capital On Economic Development

How does cultural capital drive economic growth?What is the intrinsic mechanism that makes sense?These puzzles are attracting but few people have done cogent and deep studies.Besides,compared with economic growth rate,economic growth quality is paid more attention nowadays,since the past rapid economic growth was gained at the price of environmental damage which has already posed a threat to the health of human beings.Then,how does cultural capital affect economic growth quality?This also deserves closer investigation.In this thesis,we try to analyze the relationship between cultural capital and economic development,that is,both economic growth rate and economic growth quality,using economic research methods and from economic perspectives,combining both theoretical and empirical studies.Firstly,we focus on cultural capital and economic quantity.By bringing cultural capital back into classical growth model,we build up a two-sector(cultural goods production sector and non-cultural goods production sector)growth model.After gaining relationships between variables along the balance growth path,we further use numerical simulation to obtain more direct enlightenments.From the analysis of simulation,we conclude that the effect of cultural capital on economic growth depends on the combination of spillover effect and substitution effect,which are determined by the accumulation of cultural capital and economic development stages.To improve our theoretical intuitions,empirical research on the relationship between cultural capital and economic growth has been done using the panel data of 30 provinces in China during 1996-2015.We find that in the early stage,cultural capital has faint effect on economic growth,but positive and significant effect later.Further,we use threshold model to study the nonlinear relationship between cultural capital and economic growth,and take factors which may have effect on the spillover effect of cultural capital as threshold variables.Secondly,we focus on studying cultural capital and economic quality.Following the idea of "Five Major Development Concepts",and using entropy weight method,we construct the quality index of China’s economic development.After close observation of the economic quality index,we conclude that all provinces’ economic quality have been improved steadily,yet the differences are very big.Then,taking 30 provinces from 1996 and 2015 as research samples,we empirically analyze the relationship on cultural capital and economic quality using system GMM method.As we can see,cultural capital significantly improves economic quality,mainly through innovation,coordination and opening aspects.Moreover,in the eastern area,cultural capital plays a significant role on economic quality,while it seems insignificant in middle and western area.Besides,according to scale of cultural capital,we regress the cultural capital and economic quality once more to see whether different cultural capital stock would affect their relationship.