USING EMPIRICAL EVIDENCE TO ANALYSE THE IMPACT OF CULTURE ON SOCIO-ECONOMIC DEVELOPMENT IN EUROPE

Year 2024, , 64 - 84, 15.05.2024

Kristina Mažeikaitė

https://doi.org/10.46959/jeess.1367780

Abstract

This paper aims to propose strategies for evaluating the impact of culture on socio-economic development and provide empirical evidence through an econometric model.
Today socio-economic development depends on more parameters than what the theory of the modern growth model suggests and the most undervalued area is culture. However, defining and evaluating culture can be challenging due to its multidimensional nature. This article proposes the notions of culture and strategies for assessing its impact on socio-economic development. Moreover, theoretical analysis is supplemented by empirical evidence. In order to capture the impact of culture, cultural index is composed. Finally, the impact of culture is estimated using a panel data model with instrumental variables.
The main results show, that the panel data model with instrumental variables captures the positive indirect effects of culture on economic growth. The human capital channel serves as the mechanism through which culture contributes to economic growth.

Keywords

Culture, cultural and creative industries, socio-economic development, instrumental variables model.

Ethical Statement

The author has no competing interests to declare that are relevant to the content of this article.

Thanks

The author would like to thank dr. Algirdas Bartkus, the editor and anonymous referees for valuable comments.

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