Economic Growth and Human Networking

The purpose of study is to examine the role guanxi or human networks on economic development. We are concerned with dynamic interdependence between wealth, and capital in a neoclassical growth model. Guanxi changes due investment networking can affect productivities activities. Establishing costs time, consumer goods goods. introduce into Solow-Uzawa simulate nonlinear system has unique stable equilibrium point. mainly effects some parameters transitional processes dynamics. get insights growth. For instance, if trust deteriorates among member society which results rise deterioration rate guanxi, then becomes weaker falls; household spends more hours establishing less work; national output, output fall; wage interest per wealth consumption levels two fall.