Economic /macroeconomics

Nemashkalo K.R.

Simon Kuznets Kharkiv National University of Economics, Ukraine

Research of the influence of social capital

on the performance of the economy on macro level

On the current stage of economic development tangible and intangible assets of production become more important issue. These are the intangible assets which are a basis of social capital.

Accumulation and effective functioning of this type of capital may lead to an improvement in economic results not only of individual business entities, but the country as a whole.

The concept of “social capital” were firstly used by P. Bourdieu, J. Coleman, R. Putnam, F. Fukuyama. The follow authors of scientific works, in which theoretical basics of a problem of social capital formation and use in Ukraine are researched, should be noted. These are S.I. Bandura, M.E. Gorozhankina, O.A. Grishnova, M.S. Doronina, E.S. Dragomirova, Y.K. Zaitsev, Y.R. Mishin, A.I Nechepurenko, etc.

Nowadays, an intensive formation of the theory of social capital happens. But still a number of problems related to empirical studies of the effect of social capital on the efficiency of performance of the economy on the macro level remains poorly studied.

These are the problems which define a purpose and structure of the given research.

In the present study, social capital refers to a set of institutions, relationships and norms, judicious use of which contributes to the achievement of the social benefits [1].

Social capital on the macro level is formed from the strong links between the actors, which are based on trust and shared values, which simplifies the joint activity.

In the modern global economy, the role of social capital conditioned by the fact that it facilitates an access to information and goods for economic agents, which in turn increases the amount of available resources, and reduces costs.

To establish the relationship between the level of gross domestic product (GDP) and the level of social capital, it is expedient to build a regression model.

In the given study, it is built on the basis of three main and two intermediate groups of countries in a certain stage of development for 2012 [2].

The distribution of countries by the stages of development is based on two criteria: the level of GDP per capita and the share of mineral exports in total exports of goods and services.

Countries that fall between two of the three groups are intermediate. Accordingly, the first group includes 35 highly developed countries with innovation-driven economy. Ukraine refers to the second group of countries with efficiency-driven economy.

The regression model for countries with innovation- driven economy obtained as a result of simulation has the following form (a rate of regression − 51.87%):

Y=58.46 +0.51 х,

where Y − GDP per capita;

x − index of social capital.

Social capital has a positive impact on the GDP volume of countries with high level of human development.

Verification of the model on its adequacy performed using Fisher's F-test, and the significance of the parameters checked on Student t-test.

Regression model of the impact of social capital on the level of GDP for countries with an average level of development, which concerns Ukraine, was not significant when the regression rate was 14.87%.

Such a regression model appeared to be insignificant for countries with low levels of development too.

Thus, the efficiency of the economy in countries with high level of social capital is determined, inter alia, by the reduction of the cost of public institutions, and by the treaty monitoring as a formal base of economic relations.

On the other hand, reproduction and accumulation of social capital is only possible in a society that possesses multiple social networks, norms of cooperation and trust. Such a society belongs only to highly developed countries.

As an element of the economic system, social capital in countries with high levels of development increases the return on investment in other types of capital (natural, financial, physical and human), which leads to more efficient economic growth and socio-economic development. Thus, social capital contributes to the formation of such institutions, norms and behavior patterns that may influence the development of the economy.

Social capital on the macro level functions through actions of institutional and regulatory environment to ensure public trust and collaboration across markets and economic system of the country as a whole.

Such a social capital is most often under-invested, because acts as a public good on the macro level and, therefore, is not in the private property of those who benefit by.

Therefore, investment in the macro social capital usually does not arrive in sufficient quantity, as in any other public good. That is the prospect of further research.

References:

1. Дороніна М. С. Соціальний капітал виробничої організації [Текст] : монографія / Дороніна М. С., Нечепуренко А. І. - Х. : Вид. ХНЕУ, 2011. – 231 с.

2. The Global Competitiveness Report 2012–2013:Full Data Edition is published by the World Economic Forum within the framework of The Global Benchmarking Network. – Geneva: World Economic Forum, 2012. – 545 р.