Culture based development: measuring an invisible resource using the PLS-PM method
Abstract
Purpose
The purpose of this paper is to conduct an in-depth exploratory test of the innovative culture-based development (CBD) concept and to evaluate its potential for empirical research.
Design/methodology/approach
The authors use the partial least squares path modelling (PLS-PM) method to look closely at the latently present factor culture and investigate its various possible relationships with the rest of the sub-components of socio-economic development. The authors estimate two alternative specifications of the CBD model, with regional data for Germany in 2006.
Findings
The main finding is that according to the PLS-PM quality criteria, the CBD model is a suitable approach for measuring the cultural impact on regional level. The expected sign of the cultural effect suggested by the CBD concept is also confirmed by the results.
Originality/value
The authors identify interesting potential bottlenecks in applying the CBD concept incorrectly and demonstrate the PLS-PM potential to control for them.
Keywords
Acknowledgements
JEL Classification — Z10, R12, O15
The authors would like to thank Professor Joachim Moeller (Regensburg University and IAB, Germany) and Professor Peter Nijkamp (Free University, The Netherlands) for useful comments and recommendations on the development of this paper and its previous versions.
Citation
Tubadji, A. and Pelzel, F. (2015), "Culture based development: measuring an invisible resource using the PLS-PM method", International Journal of Social Economics, Vol. 42 No. 12, pp. 1050-1070. https://doi.org/10.1108/IJSE-01-2014-0005
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited