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

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.

Kaynakça

1. Alesina, A., & Giuliano, P. (2010). The power of the family. Journal of Economic Growth, 15(2), 93–125. https://doi.org/10.1007/s10887-010-9052-z
2. Alves, B., Colaco, D., Fonseca, I., Borrego, P., Justo, S., Bulian, G., Turon i Loren, J., Cabedo, A., Alvarez, F., Sanjuan, J., Cordero, J., & Boix, R. (2022). Measuring the Cultural and Creative Sectors EU. https://www.measuring-ccs.eu/the-measuring-ccs-consortium-publishes-the-final-report/
3. Anheier, H. K., List, R. A., Kononykhina, O., Leong Cohen, J., Haber, M., Berneaud-Kötz, M., Kaufmann, S., Mejia, L., & Wimmer, M. (2017). Cultural participation and inclusive societies - A thematic report based on the Indicator Framework on Culture and Democracy. Council of Europe. https://edoc.coe.int/en/culture-and-democracy/7285-pdf-cultural-participation-and-inclusive-societies-a-thematic-report-based-on-the-indicator-framework-on-culture-and-democracy.html
4. Azevedo, M. (2016). The evaluation of the social impacts of culture : culture, arts and development The evaluation of the social impacts of culture : culture, arts and develop-ment. Université Panthéon-Sorbonne - Paris I.
5. Bakas, D., Kostis, P., & Petrakis, P. (2020). Culture and labour productivity: An empirical investigation. Economic Modelling, 85, 233–243. https://doi.org/10.1016/j.econmod.2019.05.020
6. Bucci, A., Sacco, P. L., & Segre, G. (2014). Smart endogenous growth: Cultural capital and the creative use of skills. International Journal of Manpower, 35(1), 33–55. https://doi.org/10.1108/IJM-08-2013-0193
7. Castellani, M. (2019). Does culture matter for the economic performance of countries? An overview of the literature. Journal of Policy Modeling, 41(4), 700–717. https://doi.org/10.1016/j.jpolmod.2018.06.006
8. Dakhli, M., & De Clercq, D. (2007). Human capital, social capital, and innovation: a multi-country study. https://doi.org/10.1080/08985620410001677835

9. Dzemydaitė, G. (2019). Regionų kultūros plėtros 2012-2020 metų programos 2015-2017 metų etapo vertinimas – Kultūros tyrimai. https://www.kulturostyrimai.lt/visos-temos/kulturos-politika/regionai/regionu-kulturos-pletros-2012-2020-metu-programos-2015-2017-metu-etapo-vertinimas/
10. Evrensel, A. Y. (2015). Happiness, economic freedom and culture. Applied Economics Letters, 22(9), 683–687. https://doi.org/10.1080/13504851.2014.969819
11. Fujiwara, D., Kudrna, L., & Dolan, P. (2014a). Quantifying the Social Impacts of Culture and Sport. April, 32. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/304896/Quantifying_the_Social_Impacts_of_Culture_and_Sport.pdf
12. Fujiwara, D., Kudrna, L., & Dolan, P. (2014b). Quantifying and Valuing the Wellbeing Impacts of Culture and Sport - GOV.UK. https://www.gov.uk/government/publications/quantifying-and-valuing-the-wellbeing-impacts-of-culture-and-sport
13. Granato, J., Inglehart, R., & Leblang, D. (1996). The Effect of Cultural Values on Economic Development: Theory, Hypotheses, and Some Empirical Tests. American Journal of Political Science, 40(3), 607–631. https://doi.org/10.2307/2111786
14. Grossi, E., Sacco, P. L., Blessi, G. T., & Cerutti, R. (2011). The Impact of Culture on the Individual Subjective Well-Being of the Italian Population: An Exploratory Study. Applied Research in Quality of Life, 6(4), 387–410. https://doi.org/10.1007/s11482-010-9135-1
15. Kim, S., & Kim, H. (2009). Does cultural capital matter?: Cultural divide and quality of life. Social Indicators Research, 93(2), 295–313. https://doi.org/10.1007/s11205-008-9318-4
16. Kregždaitė, R. (2017). Kultūros ir kūrybinių industrijų vertinimo modeliavimas Europos Sąjungos šalyse [Mykolo Romerio universitetas]. https://repository.mruni.eu/handle/007/14641
17. Laužikas, R., Plikynas, D., Dulskis, V., Sakalauskas, L., & Miliauskas, A. (2020). Application of agent-based modeling for cultural information-based decisions making. Informacijos Mokslai, 88(0), 8–28. https://doi.org/10.15388/IM.2020.88.29
18. Lehman, K., Fillis, I., & Wickham, M. (2021). The Arts as an ‘Essential Service.’ Exploring Cultural Value, 215–220. https://doi.org/10.1108/978-1-78973-515-420211018
19. LSD. (2021). Rodiklių duomenų bazė - Oficialiosios statistikos portalas. https://osp.stat.gov.lt/statistiniu-rodikliu-analize#/
20. LSD. (2022). Rodiklių duomenų bazė - Oficialiosios statistikos portalas. https://osp.stat.gov.lt/statistiniu-rodikliu-analize#/
21. Pusevaitė, I., Kriaučiūnas, M., Tumonė, I., & Beleckienė, G. (2021). Galimybių įvertinti kultūros ir kūrybos sektoriaus ekonominę ir socialinę vertę žvalgomasis tyrimas. https://strata.gov.lt/images/tyrimai/2021-metai/20210930-kulturos-ir-kurybos-sektoriaus-tyrimas.pdf
22. Romer, D., Jamieson, K. H., & Pasek, J. (2009). Building Social Capital in Young People: The Role of Mass Media and Life Outlook. Political Communication, 26(1), 65–83. https://doi.org/10.1080/10584600802622878
23. Shane, S. (1995). Uncertainty Avoidance and the Preference for Innovation Championing Roles. Journal of International Business Studies, 26(1), 47–68. https://doi.org/10.1057/PALGRAVE.JIBS.8490165/METRICS
24. Tabellini, G. (2010). Culture and Institutions: Economic Development in the Regions of Europe. Journal of the European Economic Association, 8(4), 677–716. https://doi.org/10.1111/j.1542-4774.2010.tb00537.x
25. Tang, L., & Koveos, P. E. (2008). A framework to update Hofstede’s cultural value indices: Economic dynamics and institutional stability. Journal of International Business Studies, 39(6), 1045–1063. https://doi.org/10.1057/PALGRAVE.JIBS.8400399/TABLES/7
26. Taras, V., Steel, P., & Kirkman, B. L. (2012a). Improving national cultural indices using a longitudinal meta-analysis of Hofstede’s dimensions. Journal of World Business, 47(3), 329–341. https://doi.org/10.1016/J.JWB.2011.05.001
27. Taras, V., Steel, P., & Kirkman, B. L. (2012b). Improving national cultural indices using a longitudinal meta-analysis of Hofstede’s dimensions. Journal of World Business, 47(3), 329–341. https://doi.org/10.1016/J.JWB.2011.05.001
28. Tubadji, A. (2012). Culture-based development: Empirical evidence for Germany. International Journal of Social Economics, 39(9), 690–703. https://doi.org/10.1108/03068291211245718
29. Tubadji, A. (2013). Culture-based development - culture and institutions: economic development in the regions of Europe. International Journal of Society Systems Science, 5(4), 355. https://doi.org/10.1504/ijsss.2013.058466
30. Tubadji, A. (2014). Was Weber right? The cultural capital root of socio-economic growth examined in five European countries. International Journal of Manpower, 35(1), 56–88. https://doi.org/10.1108/IJM-08-2013-0194
31. Tubadji, A. (2020). Value-free analysis of values: A culture-based development approach. In Sustainability (Switzerland) (Vol. 12, Issue 22, pp. 1–17). MDPI AG. https://doi.org/10.3390/su12229492
32. Tubadji, A., & Gnezdilova, N. (2014). The German miracle or the miracle of the cultural attitude Inequality and convergence as products of culture in Germany. International Journal of Social Economics, 41(11), 1014–1037. https://doi.org/10.1108/IJSE-11-2012-0211
33. Tubadji, A., & Nijkamp, P. (2015). Cultural impact on regional development: application of a PLS-PM model to Greece. Annals of Regional Science, 54(3), 687–720. https://doi.org/10.1007/s00168-015-0672-2
34. Tubadji, A., & Pelzel, F. (2015). Culture based development: Measuring an invisible resource using the PLS-PM method. International Journal of Social Economics, 42(12), 1050–1070. https://doi.org/10.1108/IJSE-01-2014-0005 Uz, I. (2014). The Index of Cultural Tightness and Looseness Among 68 Countries. Http://Dx.Doi.Org/10.1177/0022022114563611, 46(3), 319–335. https://doi.org/10.1177/0022022114563611
35. Vilkas, E., Vasiliauskas, A., & Kuodis, R. (2002). Ekonomikos augimo ir jos struktūros plėtotės strategija. 133–192. https://www.lituanistika.lt/content/86405