scholarly journals Human and Social Capital Complementarities in the Presence of Credit Market Imperfections

2018 ◽  
Vol 23 (2) ◽  
pp. 109-150
Author(s):  
Natasha Moeen
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Negative Relationship ◽  
Credit Market ◽  
Individual Level ◽  
Long Run ◽  
Short Run ◽  
The Interest Rate ◽  
The Individual ◽  
Human And Social Capital

This paper models the individual-level social capital effect the credit market constraints that reduce the accumulation of costly human capital. Human capital, in turn, improves an individual’s income as well as the bequest that they intend to leave for their children. It also helps reduce inequality across a country. Finally, the model shows that investment in social capital has a negative relationship with the interest rate, so that the initial inherited bequest of every individual affects the output and investment in the short-run, as well as in the long-run.

Determinants of Total Factor Productivity in Mexico, Indonesia, Nigeria, and Turkey (1980–2014)

2018 ◽  
Vol 4 (2) ◽  
pp. 192-217 ◽  
Author(s):  
Phillip Akanni Olomola ◽  
Tolulope Temilola Osinubi
Keyword(s):  
Human Capital ◽  
Total Factor Productivity ◽  
Negative Relationship ◽  
Annual Data ◽  
Factor Productivity ◽  
Distributed Lag ◽  
Long Run ◽  
The World ◽  
Government Stability ◽  
Short Run

This study analyzed the macroeconomic and institutional determinants of total factor productivity (TFP) in the MINT (Mexico, Indonesia, Nigeria, and Turkey) countries during the period 1980–2014. Annual data covering the period between 1980 and 2014 were used. Data on real gross domestic product (real GDP), labor force, gross fixed capital formation, foreign direct investment (FDI), human capital, and inflation were sourced from the World Development Indicators published by the World Bank. Also, data on corruption, government stability, and law and order were obtained from the database of International Country Risk Guide. Panel autoregressive distributed lag (PARDL) regression technique was used to estimate the model. Results showed that TFP growth rate declined on average by 1.4 per cent and 1.8 per cent in Mexico and Turkey, respectively, while Indonesia and Nigeria did not experience productivity growth on the average. Results also showed that in the long run, human capital and government stability had positive and significant effects on TFP, while FDI and corruption had negative but significant effects on TFP. In the short run, there existed a significant negative relationship between TFP and inflation. However, the effects of human capital and corruption on TFP were positive and significant. The study concluded that human capital and corruption were key drivers of TFP in the MINT countries both in the long run and short run.

Social Capital and Diversity Generalized Trust, Social Cohesion and Regimes of Diversity

2007 ◽  
Vol 40 (3) ◽  
pp. 709-732 ◽  
Author(s):  
Marc Hooghe
Keyword(s):  
Social Capital ◽  
Ethnic Diversity ◽  
Negative Relationship ◽  
Group Differences ◽  
Capital Social ◽  
Generalized Trust ◽  
Absolute Level ◽  
Individual Level ◽  
Level 3 ◽  
The Individual

Abstract.In recent years an impressive amount of evidence has been collected documenting a negative relationship between levels of ethnic diversity and social capital indicators, in particular generalized trust. In this article we raise a number of theoretical arguments that should be addressed before these findings can be generalized. First, it has to be remembered that most of these studies focus on generalized trust as a social capital indicator, while trust probably is most vulnerable for the effects of weakening homogeneity. Second, it is argued that in order to arrive at a better understanding of the relation between diversity and social capital, at least three intermediary variables need to be taken into account: 1) the question whether diversity entails segregation of networks at the individual level; 2) the increase in diversity rather than the absolute level; 3) the regimes societies use to govern diversity, and especially the variation with regard to the openness of these regimes. We close by exploring the suggestion that in more diverse societies, recognition of group differences and identities, and group relations based on equality-based concepts of reciprocity should be considered as potentially more meaningful strategies.Résumé.Dans les dernières années, une quantité impressionnante de preuves ont été rassemblées, qui documentent une relation négative entre le niveau de diversité ethnique et les indicateurs de capital social, en particulier la confiance généralisée. Dans cet article, nous soulevons un certain nombre d'arguments théoriques qu'il faut examiner avant de pouvoir généraliser ces résultats. D'abord il faut noter que la plupart de ces études se sont concentrées sur la confiance généralisée comme indicateur de capital social alors que la confiance est probablement particulièrement vulnérable aux effets d'une érosion de l'homogénéité. Deuxièmement, nous avançons que, pour mieux comprendre la relation entre diversité et capital social, trois variables intermédiaires au moins doivent être prises en considération : 1) l'existence d'une ségrégation des réseaux au niveau individuel du fait de la diversité; 2) l'augmentation de la diversité plutôt que son niveau absolu; 3) les régimes que les sociétés utilisent pour gouverner la diversité et surtout le degré d'ouverture de ces régimes. Pour finir, nous explorons la suggestion que, dans des sociétés plus diverses, la reconnaissance des différences et identités des groupes, et des relations inter-groupes basées sur des concepts d'égalité et de réciprocité devraient être considérées comme des stratégies potentiellement plus significatives.

scholarly journals The Interest Rate, Learning, and Inventory Investment

2004 ◽  
Vol 94 (5) ◽  
pp. 1303-1327 ◽  
Author(s):  
Louis J Maccini ◽  
Bartholomew J Moore ◽  
Huntley Schaller
Keyword(s):  
Interest Rate ◽  
Regime Switching ◽  
Real Interest Rate ◽  
Decision Rules ◽  
Negative Relationship ◽  
The Real ◽  
Long Run ◽  
Inventory Investment ◽  
Short Run ◽  
The Interest Rate

This paper presents a model that provides an explanation, based on regime switching in the real interest rate and learning, of why tests based on stock-adjustment models, Euler equations, or decision rules—which emphasize short-run fluctuations in inventories and the interest rate—are unlikely to uncover a negative relationship between inventories and the real interest rate. The model, however, predicts that inventories will respond to long-run movements, that is, to regime shifts in the real interest rate. Tests emphasizing cointegration techniques confirm this prediction and show a significant long-run relationship between inventories and the real interest rate.

CONTRIBUTION OF EDUCATION TO SOCIAL CAPITAL DEVELOPMENT

2018 ◽  
Vol 28 (1) ◽  
pp. 25-30
Author(s):  
Vojislav Ilić ◽  
Igor Novaković ◽  
Slobodan Cvetanović
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Social Engagement ◽  
Processing System ◽  
Physical Capital ◽  
Well Being ◽  
Individual Characteristics ◽  
Social Progress ◽  
The Individual ◽  
Human And Social Capital

During the last decade of the last century, the concept of capital in scientific literature has been significantly expanded. Namely, for decades, the belief that the category of capital includes only visible resources has been modified in terms of extending its comprehensiveness to intangible resources, such as human and social capital. Human capital encompasses knowledge, skills, competencies and characteristics embodied in the individual, which enable the creation of personal, social and economic well-being, while social capital represents the capital of cooperation, interaction, mutual trust and help. When it comes to education, the ability to acquire the necessary knowledge, skills and competences is crucial for the economic and social progress of individual countries. Unlike physical capital that is completely tangible, human and social capital are intangible. Recent approaches, as components of human capital, in addition to education and the level of health status of the population, outline the characteristics of people and societies that have an impact on the effects of work, including factors of ability, motivation and culture, etc. Some experts extend the content of human capital to individual characteristics of people such as creativity, innovation, motivation, attitudes (about life, business, etc.), diligence, responsibility, perseverance, self-initiative, communication success, problem solving, critical thinking, self-study, flexibility and adaptability. The paper considers the contribution of education as one of the basic and absolutely indisputable component of human capital to the development of social capital. It has come to the conclusion that countries with high education of the population tend to become richer and to invest more and more resources in the development of their own processing system. Therefore, in current business conditions in the process of creating human capital, the importance of activities focused on lifelong education and professional development is especially important. Both types of capital are developing in close interdependence. The increase in human capital corresponds significantly to the development of social capital. On the contrary, social capital represents an essential premise of increasing the efficiency of human capital. Moreover, there is not a small number of authors who regard certain attributes of social capital as human capital components. Considering the contribution of education as a component of human capital to the development of social capital, it can be concluded that education does so because it helps young people to recognize their duties as members of society, promote civil and social engagement of people and influence human behavior. Citizens with higher education have a high degree of civic and social engagement. The educated people are much more involved in their communities and take practical steps to improve the welfare of communities in which they live contributing, among other things, to the development of social capital.

scholarly journals Examining the impact of microfinance on microenterprise performance (implications for women-owned microenterprises in Indonesia)

2016 ◽  
Vol 43 (10) ◽  
pp. 962-981 ◽  
Author(s):  
Adwin Surja Atmadja ◽  
Jen-Je Su ◽  
Parmendra Sharma
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Business Performance ◽  
Negative Relationship ◽  
Group Leaders ◽  
Content Type ◽  
And Performance ◽  
Loan Officers ◽  
Human And Social Capital ◽  
The Impact

Purpose The purpose of this paper is to examine the impacts of microfinance on women-owned microenterprises’ (WMEs) performance in Indonesia. It especially observes how financial, human and social capital influences performance of enterprises. Design/methodology/approach Data were collected from a survey conducted in Surabaya, Indonesia’s second largest city, covering more than 100 WMEs. The ordered probit technique is applied to estimate the performance vis-à-vis financial, social and human capital relationships. Findings This study finds a negative relationship between performance and financial capital, and positive relationships between performance-human capital and performance-social capital. However, with respect to human capital, the level of education has a marginally significant relationship with performance. Practical implications Microcredit for the purposes of enhancing business performance might not necessarily be a good idea, if it is unable to generate higher returns. As a business develops, the volume of microcredit should be reduced, and replaced by owners’ own savings and retained profits. Regarding the non-financial factors, it might be useful for policy makers to contemplate providing incentives for spouse involvement in microenterprises run by women, and to consider them in designing credit policies. Group meetings activities should be extended to facilitate members to engage in business-related conversations and to develop social relationships. The ability of loan officers and group leaders to facilitate such conversations appears important. Originality/value To the best of the authors’ knowledge, this study provides the first in-depth understanding of the role of microfinance programmes in the case of performance of WMEs in Indonesia, one of the world’s most populous economies.

scholarly journals HUMAN CAPITAL, AGGREGATION, AND GROWTH

2010 ◽  
Vol 14 (2) ◽  
pp. 189-211 ◽  
Author(s):  
Jakub Growiec
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Knowledge Spillovers ◽  
Human Capital Accumulation ◽  
Education Spending ◽  
Cross Sectional ◽  
Individual Level ◽  
Long Run ◽  
Mincer Equation ◽  
The Individual

Human capital is embodied in people of different generations whose lifetimes are finite. We show that the finiteness of people's lives precludes human capital accumulation from driving long-run aggregate economic growth unless sufficiently strong externalities from aggregate human capital are introduced. Two possible channels for carrying forward such externalities are (i) knowledge spillovers and (ii) public education spending. Our findings shed new light on the foundations of the Uzawa–Lucas growth model. We also show that the cross-sectional Mincer equation, generated by a linear human capital accumulation equation at the individual level, does not carry forward to aggregate data.

Does human capital matter for reduction in energy consumption in India?

2019 ◽  
Vol 13 (2) ◽  
pp. 359-376 ◽  
Author(s):  
Vaseem Akram ◽  
Bhushan Praveen Jangam ◽  
Badri Narayan Rath
Keyword(s):  
Human Capital ◽  
Energy Consumption ◽  
Energy Conservation ◽  
Least Squares ◽  
Negative Relationship ◽  
Ordinary Least Squares ◽  
Annual Data ◽  
Content Type ◽  
Long Run ◽  
Short Run

Purpose This paper aims to investigate whether improvement in human capital can foster energy conservation by reducing the energy consumption in India using annual data from 1980 to 2014. Further, this study examines the relationship between human capital and various forms of energy consumption such as electricity, coal, natural gas, hydrocarbon gas and petroleum consumption. Design/methodology/approach To attain the objective, the study investigates this relation through the auto-regressive distributed lag model (ARDL) technique to find a long-run and short-run relationship. Second, to check the robustness of the results, the authors use alternative econometric methods such as dynamic ordinary least squares and fully modified dynamic ordinary least squares. Findings The results reveal a negative relationship between human capital and energy consumption, which implies that improvement in human capital lowers the energy consumption and various forms energy consumption, except for petroleum consumption. The results derived from ARDL show that there exists a long-run and short-run association between human capital and energy consumption. The results are consistent across the econometric techniques. Practical implications Because G20 countries including India aim at reducing carbon emission to a certain level, this study provides an insight that by emphasizing on human capital, India can reduce energy consumption, which would foster energy conservation. Originality/value To the best of the authors’ knowledge, this the first study in India which attempts to examine the effect of human capital on energy consumption and its various forms.

scholarly journals Does workplace social capital protect against long-term sickness absence? Linking workplace aggregated social capital to sickness absence registry data

2017 ◽  
Vol 46 (3) ◽  
pp. 290-296 ◽  
Author(s):  
Anne-Sophie K. Hansen ◽  
Ida E. H. Madsen ◽  
Sannie Vester Thorsen ◽  
Ole Melkevik ◽  
Jakob Bue Bjørner ◽  
...  
Keyword(s):  
Social Capital ◽  
Private Sector ◽  
Sickness Absence ◽  
Collective Good ◽  
Standard Deviation Increase ◽  
Individual Level ◽  
The Individual ◽  
Adjusted Model ◽  
Workplace Social Capital

Aims: Most previous prospective studies have examined workplace social capital as a resource of the individual. However, literature suggests that social capital is a collective good. In the present study we examined whether a high level of workplace aggregated social capital (WASC) predicts a decreased risk of individual-level long-term sickness absence (LTSA) in Danish private sector employees. Methods: A sample of 2043 employees (aged 18–64 years, 38.5% women) from 260 Danish private-sector companies filled in a questionnaire on workplace social capital and covariates. WASC was calculated by assigning the company-averaged social capital score to all employees of each company. We derived LTSA, defined as sickness absence of more than three weeks, from a national register. We examined if WASC predicted employee LTSA using multilevel survival analyses, while excluding participants with LTSA in the three months preceding baseline. Results: We found no statistically significant association in any of the analyses. The hazard ratio for LTSA in the fully adjusted model was 0.93 (95% CI 0.77–1.13) per one standard deviation increase in WASC. When using WASC as a categorical exposure we found a statistically non-significant tendency towards a decreased risk of LTSA in employees with medium WASC (fully adjusted model: HR 0.78 (95% CI 0.48–1.27)). Post hoc analyses with workplace social capital as a resource of the individual showed similar results. Conclusions: WASC did not predict LTSA in this sample of Danish private-sector employees.

Exploring the relationship between macroeconomic indicators and sovereign credit default swap in Pakistan

2017 ◽  
Vol 18 (4) ◽  
pp. 368-380
Author(s):  
Abdul Rashid ◽  
Farooq Ahmad ◽  
Ammara Yasmin
Keyword(s):  
Exchange Rate ◽  
Credit Default Swap ◽  
Content Type ◽  
Macroeconomic Variables ◽  
Long Run ◽  
Credit Default ◽  
Macroeconomic Indicators ◽  
Short Run ◽  
The Exchange Rate ◽  
The Interest Rate

Purpose This paper aims to empirically examine the long- and short-run relationship between macroeconomic indicators (exchange rates, interest rates, exports, imports, foreign reserves and the rate of inflation) and sovereign credit default swap (SCDS) spreads for Pakistan. Design/methodology/approach The authors apply the autoregressive distributed lag (ARDL) model to explore the level relationship between the macroeconomic variables and SCDS spreads. The error correction model is estimated to examine the short-run effects of the underlying macroeconomic variables on SCDS spreads. Finally, the long-run estimates are obtained in the ARDL framework. The study uses monthly data covering the period January 2001-February 2015. Findings The results indicate that there is a significant long-run relationship between the macroeconomic indicators and SCDS spreads. The estimated long-run coefficients reveal that both the interest rate and foreign exchange reserves are significantly and negatively, whereas imports and the rate of inflation are positively related to SCDS spreads. Yet, the results suggest that the exchange rate and exports do not have any significant long-run impact on SCDS spreads. The findings regarding the short-run relationship indicate that the exchange rate, imports and the rate of inflation are positively, whereas the interest rate and exports are negatively related to SCDS spreads. Practical implications The results suggest that State Bank of Pakistan should design monetary and foreign exchange rate polices to minimize unwanted variations in the exchange rate to reduce SCDS spreads. The results also suggest that it is incumbent to Pakistan Government to improve the balance of payments to reduce SCDS spreads. The findings also suggest that the inflation targeting policy can also help in reducing SCDS spreads. Originality/value This is the first study to examine the empirical determinants of SCDS spreads for Pakistan. Second, it estimates the short- and long-run effects in the ARDL framework. Third, it considers both internal and external empirical determinants of SCDS spreads.

scholarly journals MONETARY POLICY AND TELECOMMUNICATION OUTPUT IN NIGERIA

2020 ◽  
Vol 3 (2) ◽  
pp. 62-73
Author(s):  
John Abiodun Akinde ◽  
Elijah Oludayo
Keyword(s):  
Monetary Policy ◽  
Money Supply ◽  
Negative Relationship ◽  
Negative Influence ◽  
Favourable Effect ◽  
Data Series ◽  
Long Run ◽  
Integration Test ◽  
Short Run ◽  
Positive Effect

Different policies impact on the growth of the telecommunication sector in Nigeria. One of these policies which influence the expansion or contraction of the telecommunication output is monetary policy. To this end, this research examined the effect of monetary policy on telecommunication output in Nigeria. For the purpose of analysis, time series secondary data were sourced from Central Bank of Nigeria (CBN) statistical bulletin covering the periods1986 to 2018. Autoregressive Distributed Lag (ARDL) technique was employed after examining the stationarity of the data series using Augmented Dickey-Fuller technique. The bound co-integration test revealed that there is long run equilibrium between the monetary policy variables employed and telecommunication output. The ARDL result revealed that money supply had significant and positive effect on telecommunication output in the short and long run; liquidity ratio produced an insignificant and negative relationship with telecommunication output in the short run and insignificant positive effect in the long run; exchange rate had insignificant negative effect in the short run and a significant positive effect on telecommunication output in the long run; consumer price index had significant negative influence on telecommunication outputboth in the short run and long run. The study concluded that monetary policy stimulates telecommunication output in Nigeria. Thus, it was recommended that the monetary authority should pursue an expansionary monetary policy to sustain the positive influence of money supply on telecommunication output in Nigeria while rolling out policy to reduce the liquidity ratio of banks in the short run but increase it in the long run so that the long term favourable effect of liquidity ratio can be felt on telecommunication output.  

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