On Social Capital's Influence upon Economic Development

Social capital influences economic development by influencing human capital,technology and institution.At first,social capital can spread or strengthen human capital investment policies and abandon some policies.At the same time,social capital in community and family has a special influence on human capital,which is difficult to be substituted in an extent.Meanwhile,the entrepreneurs' different region distribution shows that given the same institution background,social capital plays an important role in the creating of entrepreneurs,which lets us know the importance of innovation pushed by inner members of the backward.Secondly,social capital can influence technology innovation.When they import new technology,developing countries must make sure it can be matched their social capital.At last,when we analyze institute change,we will find that when new institution has a high consistency with social capital,cost for institution change is low and more possibility to be successful,so the new institution is efficiency.