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Social Capital, Technology Innovation and the Threshold Effect about Resource Curse
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TitleSocial Capital, Technology Innovation and the Threshold Effect about Resource Curse  
AuthorWan Jianxiang and Wang Shouyang  
OrganizationJiangxi University of Finance and Economics; Chinese Academy of Sciences; 
Key WordsSocial Capital; Technology Innovation; Resource Curse; Threshold Effect 
AbstractBy employing Hamilton dynamic optimization and panel threshold model simultaneously, this paper first considers social capital when analyzing the existence and mechanism of resource curse. Make social capital and technology innovation endogenous, we set and solve four-department endogenous economic growth model which including resource development industry and manufacturing industry. After mathematical research we find that: the accelerating self-accumulation of social capital, leads more labor flow into R&D department, motivating technology innovation, weakening the crowding-out effect on technology innovation resulting from resource development, cutting off the pathway of the resource curse, and promoting economic growth. Fundamentally social capital and technology innovation becomes threshold of breaking the resource curse. Furthermore, using panel data of 31-region in China during 1998 to 2013, setting cross-effect of social capital and technology innovation as threshold variable, we find that: there does exist the threshold, namely the cross effect of social capital and technology innovation,in the relation between resource and growth, before and after the threshold value, the “curse” effect of resource to economic growth gradually changes from strong to weak, and then disappears, even turning into resource blessing. 
Serial NumberWP1117 
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