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Intangible factors and productivity: Evidence from Europe at the regional level

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  • Kaasa, Anneli

Abstract

This study investigates how a region’s labour productivity could be influenced by intangible factors such as social capital, government quality, cultural dimensions and religion - factors that have not received much attention in the previous literature. As another novelty, regional-level data (78 regions of 22 European countries) were analysed. In order to take into account the relationships between various factors of productivity, the structural equation modelling approach is used enabling to find out both direct and indirect effects. The results showed institutional trust and civic participation to be the most important for productivity. Individualism appeared to have a positive and masculinity and power distance a negative total effect on labour productivity.

Suggested Citation

  • Kaasa, Anneli, 2018. "Intangible factors and productivity: Evidence from Europe at the regional level," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 14(2), February.
    • Handle: RePEc:ags:pdcbeh:285171
    DOI: 10.22004/ag.econ.285171
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    Cited by:

    1. Schubert, Torben & Jäger, Angela & Türkeli, Serdar & Visentin, Fabiana, 2020. "Addressing the productivity paradox with big data: A literature review and adaptation of the CDM econometric model," MERIT Working Papers 2020-050, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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    Keywords

    Public Economics;

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