Building social connections boosts economy and human potential, study finds.
Social capital, which includes social networks and shared norms, plays a key role in economic growth by fostering cooperation and trust. This study explores how social capital is formed through the development of human capital, which is created through productive consumption. The research shows that both human capital and social capital accumulation impact the equilibrium growth rate, with an increase in social capital being driven by the presence of human capital. The findings suggest that investing in human capital and fostering social connections can lead to economic prosperity.
