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Social capital, R&D and provincial growth in Indonesia

Juhro, Solikin M. / Narayan, Paresh Kumar / Iyke, Bernard Njindan / Trisnanto, Budi

We propose and test the hypothesis that social capital is an important determinant of total factor productivity (TFP) growth. Using a new historical dataset on 33 Indonesian provinces covering the period 2010–18, we show that social capital enhances growth through research and development (R&D) expenditure. Our analysis is based on a modified endogenous growth model, and the estimations reveal that a unit standard deviation improvement in aggregate, tangible and intangible social capital, and religiosity improves TFP growth by at least 9.80% (of the mean TFP growth) through R&D spending. These results are robust.

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Social capital, R&D and provincial growth in Indonesia

Juhro, Solikin M. / Narayan, Paresh Kumar / Iyke, Bernard Njindan / Trisnanto, Budi

We propose and test the hypothesis that social capital is an important determinant of total factor productivity (TFP) growth. Using a new historical dataset on 33 Indonesian provinces covering the period 2010–18, we show that social capital enhances growth through research and development (R&D) expenditure. Our analysis is based on a modified endogenous growth model, and the estimations reveal that a unit standard deviation improvement in aggregate, tangible and intangible social capital, and religiosity improves TFP growth by at least 9.80% (of the mean TFP growth) through R&D spending. These results are robust.

Social capital, R&D and provincial growth in Indonesia

Juhro, Solikin M. / Narayan, Paresh Kumar / Iyke, Bernard Njindan / Trisnanto, Budi

We propose and test the hypothesis that social capital is an important determinant of total factor productivity (TFP) growth. Using a new historical dataset on 33 Indonesian provinces covering the period 2010–18, we show that social capital enhances growth through research and development (R&D) expenditure. Our analysis is based on a modified endogenous growth model, and the estimations reveal that a unit standard deviation improvement in aggregate, tangible and intangible social capital, and religiosity improves TFP growth by at least 9.80% (of the mean TFP growth) through R&D spending. These results are robust.

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Title:

Social capital, R&D and provincial growth in Indonesia

Contributors:

Juhro, Solikin M. (author) / Narayan, Paresh Kumar (author) / Iyke, Bernard Njindan (author) / Trisnanto, Budi (author)

Published in:

Regional Studies ; 56 ; 2117-2132

Publication date:

2022-12-02

Size:

16 pages

ISSN:

0034-3404 , 1360-0591

DOI:

https://doi.org/10.1080/00343404.2022.2042469

Type of media:

Article (Journal)

Type of material:

Electronic Resource

Language:

Unknown

Keywords:

social capital , research and development expenditure , total factor productivity growth , Indonesia , O3 , O4

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