scholarly journals The Relationship Between Institutions and Business Opportunities Toward Economic Growth

2020 ◽  
Vol 8 (4) ◽  
pp. 281-291
Author(s):  
P Eko Prasetyo ◽  
Andryan Setyadharma ◽  
Nurjannah Rahayu Kistanti
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Rural Areas ◽  
Institutional Economics ◽  
Strong Relationship ◽  
Regional Economic Growth ◽  
Analysis Model ◽  
Regional Economic ◽  
Business Opportunities ◽  
The Relationship

This study aimed at explaining the relationship, and effects of human capital, entrepreneurial business opportunities, institutional economics, and regional economic growth. It was carried out to develop fundamental microeconomic model in rural development to assist human capital roles and institutions as well as entrepreneurial business for the economic growth. Further, the researchers used simultaneous system method in form of a recursive correlational path analysis model. This modeling system provides simplicity and easy understanding. The main source of the data were the empirical micro fundamental data of the business doers in rural areas measured by Gini index ratio. The findings showed that human capital and institutions were the main pillars in improving the quality of regional economic growth. Interestingly, there was a strong relationship between business opportunities and economic growth. However, the business opportunities had significantly negative effect toward the regional economic growth. These indicate the existence of a disturbance outside the model, namely the presence of bank credit which apparently made the business doers suffered losses. In this way, there is a need to examine further the reasons why the bank credits given to MSMEs negatively effect the economic growth.  

scholarly journals Social capital and economic growth in the regions of Europe

2021 ◽  
pp. 0308518X2110000
Author(s):  
Jonathan Muringani ◽  
Rune D Fitjar ◽  
Andrés Rodríguez-Pose
Keyword(s):  
Economic Growth ◽  
Social Capital ◽  
Human Capital ◽  
European Social Survey ◽  
Knowledge Flows ◽  
Regional Economic Growth ◽  
Lower Growth ◽  
Regional Economic ◽  
Bonding Social Capital ◽  
Bridging Social Capital

Social capital is an important factor explaining differences in economic growth among regions. However, the key distinction between bonding social capital, which can lead to lock-in and myopia, and bridging social capital, which promotes knowledge flows across diverse groups, has been overlooked in growth research. In this paper, we address this shortcoming by examining how bonding and bridging social capital affect regional economic growth, using data for 190 regions in 21 EU countries, covering eight waves of the European Social Survey between 2002 and 2016. The findings confirm that bridging social capital is linked to higher levels of regional economic growth. Bonding social capital is highly correlated with bridging social capital and associated with lower growth when this is controlled for. We do not find significantly different effects of bonding social capital in regions with more or less bridging social capital, or vice versa. We examine the interaction between social and human capital, finding that bridging social capital is fundamental for stimulating economic growth, especially in low-skilled regions. Human capital also moderates the relationship between bonding social capital and growth, reducing the negative externalities imposed by excessive bonding.

scholarly journals Human Capital and Regional Economic Growth in Russia

2021 ◽  
Vol 17 (2) ◽  
pp. 57-80
Author(s):  
Boris Alekhin
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Panel Data ◽  
Capital Accumulation ◽  
Positive Impact ◽  
Regional Economic Growth ◽  
Human Capital Accumulation ◽  
Regional Economic ◽  
Long Run ◽  
Per Capita

This study examines the contribution of human capital accumulation to regional economic growth using panel data for 82 subjects of the Russian Federation over 2002–2019. This paper aims to test the hypothesis that in the long-run equilibrium there exists a connection between economic growth and human capital accumulation in the regions of Russia. From the point of view of econometrics, it would mean that we should refute the hypothesis that there is no cointegration of time series describing the aforementioned variables. General theoretical framework was drawn from the neoclassical growth theory, and panel data econometrics suggested the appropriate empirical methodology. Pooled mean group and fully modified least squares estimators were applied to an autoregressive distributed lags model based on the Solow model. The results indicate that accumulation of human capital has a positive and statistically significant long-term impact on the rate of growth of per capita income and that these variables are cointegrated. Such calculations allow us to make the following conclusions: per capita GRP is cointegrated with physical and human capital on the regional level. The cointegrating equation ‘explained’ more than 90% of per capita GRP variance. Human capital accumulation had a significant positive impact on per capita GRP growth in the long run; such impact exceeded the impact of physical capital accumulation. The positive impact of human capital accumulation on per capita GRP growth surpassed the negative elasticity of growth GRP by the amount of resource excluded from the real sector to provide support to students and maintain the regional education system. The paces at which regional economies were heading towards the steady state differed which is an evidence that there exist an incredible manifold of ways and means for regions to adjust to disbalancies

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