Social Capability and Economic Development

Posted: 11 Nov 1996

See all articles by Jonathan R.W. Temple

Jonathan R.W. Temple

Centre for Economic Policy Research (CEPR)

Paul A. Johnson

Vassar College

Date Written: Undated


This paper explores the role of "social capability" in growth and development. We present a wide variety of evidence to show that rates of growth, in per capita income and TFP, are strongly related to the extent of a country's initial social development. We also show that differences in social development can explain polarization taking place in the world income distribution. Not only are these results interesting in themselves, they lead us to reject the influential augmented Solow model in favor of the alternative view, in which technology is allowed to differ across countries and social factors play a role in the speed of catching up.

JEL Classification: O40, O57

Suggested Citation

Temple, Jonathan R.W. and Johnson, Paul Arden, Social Capability and Economic Development (Undated). Available at SSRN:

Jonathan R.W. Temple (Contact Author)

Centre for Economic Policy Research (CEPR)

United Kingdom

Paul Arden Johnson

Vassar College ( email )

124 Raymond Avenue
Poughkeepsie, NY 12604
United States

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