Fahmi Tanjung and Muryani (2019) The Influence of Social Capital in Economic Development in Indonesia: Macro Data Analysis of 2012 and 2014. The International Journal of Advance in Scientific Research and Engineering (IJASRE), 5 (3). pp. 128-132. ISSN 2454-8006

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Abstract

The new paradigm development is not only measured from the economic aspect through Gross Domestic Product (GDP), but also viewed multidimensionally from the change of social structure, behavior, and national institution. Such social perspective is called social capital. Social capital is considered an important determinant of economic development. So that social capital is placed as one input in development. The purpose of this scientific paper is to analyze the influence of social capital in the economic development of the approach of Gross Regional Domestic Product (GRDP) in 33 Provinces in Indonesia. The analysis of the effect of social capital on GRDP along with other variables such as physical capital, labor, and human capital is done at the macro level. The limits are the role of social capital in 2012 and 2014 due to data availability. The result of research indicates that social capital has not been enough to influence human capital at the macro level, while human capital has a significant effect on the Gross Regional Domestic Product (GRDP). It can say that social capital indirectly is no longer effected on GRDP in Indonesia.

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