Skip to main content Accessibility help


  • Youyou Baende Bofota (a1), Raouf Boucekkine (a2) and Alain Pholo Bala (a3)


We propose an endogenous growth model incorporating social capital. Social capital serves only as an input in the production of human capital and it involves a cost in terms of the final good. In contrast to alternative specifications, this model ensures that social capital enhances productivity gains by playing the role of a timing belt that drives the transmission and propagation of all productivity shocks. We find that, depending on the measure of social capital, the elasticity of human capital with respect to social capital varies from 6% to 10%. Finally, we investigate the short-term dynamics and imbalance effect properties of the model, depending on the value of this elasticity. In particular, we show that when the substitutability of social capital for human capital increases, the economy is better equipped to surmount initial imbalances, as individuals may allocate more working time to the final good sector without impeding economic growth.


Corresponding author

Address correspondence to: Alain Pholo Bala, Department of Economics and Econometrics, University of Johannesburg, APK Campus, D Ring 213, PO Box 524, Auckland Park 2006, Johannesburg, South Africa; e-mail:,


Hide All
Alesina, A. and La Ferrara, E. (2000) The Determinants of Trust. NBER working paper 7621.
Baende Bofota, Y., Boucekkine, R., and Bala, A. Pholo (2012) Social Capital as an Engine of Growth: Multisectoral Modelling and Implications. ERSA working paper 317.
Barro, R. and Lee, J.-W. (2000) International Data on Educational Attainment: Updates and Implications. CID working paper 42.
Barro, R.J. and Sala-i-Martin, X. (1995) Economic Growth. New York: McGraw Hill.
Beugelsdijk, S. and van Schaik, A. (2005) Social capital and growth in European regions: An empirical test. European Journal of Political Economy 21, 301324.
Boucekkine, R., Martinez, B., and Ruiz-Tamarit, R. (2008) A note on global dynamics and imbalance effects in the Lucas Uzawa model. International Journal of Economic Theory 4, 503518.
Boucekkine, R. and Ruiz-Tamarit, R. (2004) Imbalance effects in the Lucas model: An analytical exploration. Berkeley Electronic Journals in Macroeconomics 4, Article 15 (Topics).
Boucekkine, R. and Ruiz-Tamarit, R. (2008) Special functions for the study of economic dynamics: The case of the Lucas–Uzawa model. Journal of Mathematical Economics 44, 3354.
Chou, Y.K. (2006) Three simple models of social capital and economic growth. Journal of Socio–Economics 35, 889912.
Delhey, J. and Newton, K. (2005) Predicting cross-national levels of social trust: Global pattern or Nordic exceptionalism? European Sociological Review 21, 311327.
Földvari, P. and Van Leeuwen, B. (2009) An alternative interpretation of ‘average years of education’ in growth regressions. Applied Economics Letters 16, 945949.
Fukuyama, F. (2000) Social Capital and Civil Society. International Monetary Fund working paper WP/00/74.
Galor, O. and Zeira, J. (1993) Income distribution and macroeconomics. Review of Economic Studies 60, 3552.
Glaeser, E.L., Laibson, D., and Sacerdote, B. (2002), An economic approach to social capital. Economic Journal 112, F437F458.
Growiec, K. and Growiec, J. (2012) Social capital, trust, and multiple equilibria in economic performance. Macroeconomic Dynamics 18 (2), 282315.
Inglehart, R., et al. (2000), World Values Surveys and European Values Surveys, 1981–1984, 1990–1993, and 1995–1997. Ann Arbor, MI: Inter-university Consortium for Political and Social Research.
Knack, S. and Keefer, P. (1997) Does social capital have an economic payoff? A cross-country investigation. Quarterly Journal of Economics 112, 12511288.
Knowles, S. (2005) The Future of Social Capital in Development Economics Research. Paper prepared for the WIDER Jubilee Conference (Thinking Ahead: The Future of Development Economics, Helsinki, 17–18 June 2005).
Lucas, R.E. (1988) On the mechanics of economic development. Journal of Monetary Economics 22, 342.
Mulligan, C.B. and Sala-i-Martin, X. (1992) Transitional Dynamics in Two-sector Models of Endogenous Growth. NBER working paper 3986.
Paxton, P. (1999) Is social capital declining in the United States? A multiple indicator assessment. American Journal of Sociology 105, 88127.
Paxton, P. (2002) Social capital and democracy: An interdependent relationship. American Sociological Review 67, 254277.
Putnam, R.D. (2000) Bowling Alone: The Collapse and Revival of American Community. New York: Simon and Schuster.
Putnam, R.D., Leonardi, R., and Nanetti, R. (1993) Making Democracy Work: Civil Traditions in Modern Italy. Princeton, NJ: Princeton University Press.
Routledge, B. and Amsberg, J. (2003) Social capital and growth. Journal of Monetary Economics 50, 167193.
Solow, R.M. (1995) But verify. The New Republic, Sept. 11, pp. 36–39.
Uslaner, E.M. (1999) Democracy and social capital. In Warren, M.E. (ed.), Democracy and Trust, pp. 121150. Cambridge, UK: Cambridge University Press.
Whiteley, P. (2000) Economic growth and social capital. Political Studies 48, 443466.
Zak, P.J. and Knack, S. (2001) Trust and growth. Economic Journal 111, 295321.



Altmetric attention score

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed