Regional Propagation of the Local Social Capital Investment

Recently, society needs more efficient public investment because of the financial difficulty of central and local government. Beside, regional economies through the interregional trade are connecting each other more strongly. To make a plan of the efficient public investment, planner should understand quantitative effect from the regional social capital investment. In this study, we analyze the regional propagation of the social capital investment by spatial computable general equilibrium model. In this analysis, we suppose 3 cases about contribution to Total Factor Productivity of social capital stock and estimate production functions in each case.