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Inclusive growth through creation of human and social capital

Soumyananda Dinda (Department of Economics, Sidho-Kanho-Birsha University, Purulia, India)

International Journal of Social Economics

ISSN: 0306-8293

Article publication date: 7 October 2014




The purpose of this paper is to analyse inclusive growth that focuses on the creation of opportunities for all. Inclusive growth allows people to contribute to and benefit from economic growth, while pro-poor growth approaches focusing on welfare of the poor only to reduce inequality.


Social capital forms with the development of human capital through schooling. Educated individuals are interested in dialogue and conversation. Interaction enables people to build trust, confidence and cooperation, to commit themselves to each other (i.e. reciprocity), and thereby to knit the social fabric. This study deals with the formation of social capital through development of human capital that is created through improvement of schooling and/or social inclusion. Creation of human and social capital is the basis for inclusive growth.


Recently, economics literature incorporates social capital for explaining regional disparities. Economic development of country depends on the impact of social capital which includes social culture, norms and regulations that promote economic reforms and development activities. Social capital forms with the development of human capital through schooling.

Research limitations/implications

More detail regional levels data are required for empirical findings.

Practical implications

This paper definitely suggests a clear policy for inclusive growth model in less developed regions/countries. Briefly and specific few policies are suggested as: first, improve productive consumption providing nutritional intake to all the excluded people of the society; second, dismal the social blocking and create the base for bridging social capital formation; third, improve school enrollment and strengthen the feeling of togetherness; fourth, design school curriculum as per need base; and fifth, develop institutions and improve capacity building.

Social implications

The Government expenditure policy should be focused more on productive consumption rather than unproductive consumption. The government should concentrate on the development of education and health sectors.


The inclusive economic growth process overcomes low-level equilibrium trap. The predictions of the model are examined empirically for a cross-section of countries and have substantial support in the chosen sample data.



JEL Classifications — Z130, J240, O150, I25, I28, O4, C2

The author is grateful to the anonymous referees of this journal for their valuable comments and suggestions.


Dinda, S. (2014), "Inclusive growth through creation of human and social capital", International Journal of Social Economics, Vol. 41 No. 10, pp. 878-895.



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Copyright © 2014, Emerald Group Publishing Limited

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