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Productivity, factor accumulation and social networks: theory and evidence

Grafton, R. Quentin; Kompas, Tom; Owen, P. Dorian


The paper analyzes how social barriers to communication affect economy-wide productivity and factor accumulation. Using a dynamic model of an economy that includes a reproducible capital stock (physical or human) and effective labor, a negative relationship is shown to exist between social barriers to communication and total factor productivity (TFP), per capita consumption and reproducible capital. Robust estimates obtained from cross-country data are consistent with the models predictions....[Show more]

CollectionsANU Research Publications
Date published: 2004
Type: Working/Technical Paper


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