The Influence of Social Capital in Economic Development in Indonesia: Macro Data Analysis of 2012 and 2014

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.