Abstract:Modernization is a symbol of the overall social and economic progress of a region or a country. The technological gap between developing and developed countries provides developing countries with a late-mover advantage in accelerating industrialization and modernization. However, the ability of developing countries to truly realize the late-mover advantage depends on their social capabilities. As a comprehensive reflection of a country’s economic and social characteristics, social capability influences the absorption, transformation, and utilization of advanced technology from developed countries by developing countries, and is the social basis for developing countries to narrow the technological gap and achieve modernization. Based on a theoretical analysis of the internal relationship among social capability, the technological gap, and the modernization process, this study employs panel data from 106 countries from 1991 to 2019 to empirically test the relationship among them. The results indicate that social capability significantly promotes the modernization process of countries by narrowing the technological gap, in which technological efficiency and technological progress play an important intermediary role. The findings for China reveal that the influence of social capability on China’s modernization process exceeds that of other countries, and an important reason for China’s rapid modernization process is the effective narrowing of the technological gap with leading countries through the continuous improvement of social capability. However, China’s modernization process is currently facing new challenges due to multiple shocks at home and abroad. To continue to enhance its social capability and establish a solid social foundation for the continued facilitation of China’s path to modernization, China needs to further open up, promote industrial transformation, strengthen social inclusion, and improve governance efficiency.
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