IDEAS home Printed from https://ideas.repec.org/a/kap/jculte/v39y2015i3p277-303.html
   My bibliography  Save this article

Culture-based development in the USA: culture as a factor for economic welfare and social well-being at a county level

Author

Listed:
  • Annie Tubadji

    ()

  • Brian Osoba

    ()

  • Peter Nijkamp

    ()

Abstract

This paper explores the link between culture and regional development in USA counties by explicitly including an arts variable in an attitudes-driven culture-based development (CBD) production function. The main aims of the research are (1) to revisit the standard CBD model in order to examine whether its findings from the European Union context hold also for the United States and (2) to expand the CBD standard inquiry of local development beyond economic welfare. In relation to the latter, we address in particular (1) the effect of local cultural industries on migration (as a continuation of Florida’s hypothesis) and (2) the effect of culture on social well-being (alternatively measured by means of level of happiness and level of crime in terms of property theft). Our paper is, therefore, a novel contribution, providing a better understanding of the link between arts, culture and regional development and also facilitating an innovative evaluation of cultural impact relevant in the developmental debate in an extended socio-economic sense. The data used in this inquiry comprise a composite dataset, a cross section for the year 2000 at the county level combining census data with the cultural vitality index from the Western States Arts Federation and happiness variables from the general social survey panel for 2006. A three-stage least squares exploration of recursive types of a standard CBD and an extended CBD model leads to three main results: (1) the existence of a CBD cultural effect on local development is confirmed for the USA; (2) endogenous cultural industries have an effect on the mobility of human capital, and (3) the impact of cultural effects seems to be more significant when a negative Myrdalian vicious cycle is assumed. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Annie Tubadji & Brian Osoba & Peter Nijkamp, 2015. "Culture-based development in the USA: culture as a factor for economic welfare and social well-being at a county level," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 39(3), pages 277-303, August.
  • Handle: RePEc:kap:jculte:v:39:y:2015:i:3:p:277-303
    DOI: 10.1007/s10824-014-9232-3
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10824-014-9232-3
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. McCleary, Rachel & Barro, Robert, 2003. "Religion and Economic Growth across Countries," Scholarly Articles 3708464, Harvard University Department of Economics.
    2. Gianmarco I.P. Ottaviano & Giovanni Prarolo, 2009. "Cultural Identity And Knowledge Creation In Cosmopolitan Cities," Journal of Regional Science, Wiley Blackwell, vol. 49(4), pages 647-662, October.
    3. Thorstein Veblen, 1909. "The Limitations of Marginal Utility," Journal of Political Economy, University of Chicago Press, vol. 17, pages 620-620.
    4. Richard Florida, 2002. "Bohemia and economic geography," Journal of Economic Geography, Oxford University Press, vol. 2(1), pages 55-71, January.
    5. Ron A. Boschma & Michael Fritsch, 2007. "Creative Class and Regional Growth - Empirical Evidence from Eight European Countries," Jena Economic Research Papers 2007-066, Friedrich-Schiller-University Jena.
    6. Edward L. Glaeser, Jed Kolko, and Albert Saiz, 2001. "Consumer city," Journal of Economic Geography, Oxford University Press, vol. 1(1), pages 27-50, January.
    7. Gary S. Becker & Tomas J. Philipson & Rodrigo R. Soares, 2005. "The Quantity and Quality of Life and the Evolution of World Inequality," American Economic Review, American Economic Association, vol. 95(1), pages 277-291, March.
    8. Mariko Klasing, 2008. "Culturally Risk Averse? – A Model of Economic Growth with Endogenous Culture," University of St. Gallen Department of Economics working paper series 2008 2008-23, Department of Economics, University of St. Gallen.
    9. Roger White & Bedassa Tadesse, 2008. "Cultural Distance and the US Immigrant–Trade Link," The World Economy, Wiley Blackwell, vol. 31(8), pages 1078-1096, August.
    10. Rose, Andrew K., 2004. "Do WTO members have more liberal trade policy?," Journal of International Economics, Elsevier, vol. 63(2), pages 209-235, July.
    11. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    12. Robert J. Barro & Rachel M. McCleary, 2005. "Which Countries Have State Religions?," The Quarterly Journal of Economics, Oxford University Press, vol. 120(4), pages 1331-1370.
    13. Andrew K. Rose, 2004. "Do We Really Know That the WTO Increases Trade?," American Economic Review, American Economic Association, vol. 94(1), pages 98-114, March.
    14. Myrdal, Gunnar, 1989. "The Equality Issue in World Development," American Economic Review, American Economic Association, vol. 79(6), pages 8-17, December.
    15. Peter Nijkamp & Masood Gheasi & Piet Rietveld, 2011. "Migrants and International Economic Linkages: A Meta-Overview," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(4), pages 359-376, July.
    16. Selezneva, Ekaterina, 2011. "Surveying transitional experience and subjective well-being: Income, work, family," Economic Systems, Elsevier, vol. 35(2), pages 139-157, June.
    17. William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1203-1250.
    18. Möller Joachim & Tubadji Annie, 2009. "The Creative Class, Bohemians and Local Labor Market Performance: A Micro-data Panel Study for Germany 1975–2004," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 229(2-3), pages 270-291, April.
    19. Guido Tabellini, 2010. "Culture and Institutions: Economic Development in the Regions of Europe," Journal of the European Economic Association, European Economic Association, vol. 8(4), pages 677-716, June.
    20. Andrew K. Rose & Mark M. Spiegel, 2004. "A Gravity Model of Sovereign Lending: Trade, Default, and Credit," IMF Staff Papers, Palgrave Macmillan, vol. 51(s1), pages 50-63, June.
    21. Ottaviano, Gianmarco I.P. & Peri, Giovanni, 2005. "Cities and cultures," Journal of Urban Economics, Elsevier, vol. 58(2), pages 304-337, September.
    22. Bedassa Tadesse & Roger White, 2010. "Cultural distance as a determinant of bilateral trade flows: do immigrants counter the effect of cultural differences?," Applied Economics Letters, Taylor & Francis Journals, vol. 17(2), pages 147-152, January.
    23. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2006. "Does Culture Affect Economic Outcomes?," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 23-48, Spring.
    24. Andrew Rose, 2005. "Does the WTO Make Trade More Stable?," Open Economies Review, Springer, vol. 16(1), pages 7-22, January.
    25. Bedassa Tadesse & Roger White, 2010. "Does Cultural Distance Hinder Trade in Goods? A Comparative Study of Nine OECD Member Nations," Open Economies Review, Springer, vol. 21(2), pages 237-261, April.
    26. Annie Tubadji & Peter Nijkamp, 2015. "Cultural Gravity Effects among Migrants: A Comparative Analysis of the EU15," Economic Geography, Taylor & Francis Journals, vol. 91(3), pages 343-380, July.
    27. Richard Florida & Charlotta Mellander & Kevin Stolarick, 2008. "Inside the black box of regional development: human capital, the creative class and tolerance," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 615-649, September.
    28. David Throsby, 2011. "Cultural Capital," Chapters, in: Ruth Towse (ed.), A Handbook of Cultural Economics, Second Edition, chapter 20, Edward Elgar Publishing.
    29. Aleksynska, Mariya & Chiswick, Barry R., 2011. "Religiosity and Migration: Travel into One's Self versus Travel across Cultures," IZA Discussion Papers 5724, Institute of Labor Economics (IZA).
    30. Gianmarco I.P. Ottaviano & Giovanni Peri, 2016. "The economic value of cultural diversity: evidence from US cities," World Scientific Book Chapters, in: The Economics of International Migration, chapter 7, pages 229-264, World Scientific Publishing Co. Pte. Ltd..
    31. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
    32. Bisin, Alberto & Verdier, Thierry, 2001. "The Economics of Cultural Transmission and the Dynamics of Preferences," Journal of Economic Theory, Elsevier, vol. 97(2), pages 298-319, April.
    33. Fritsch, Michael & Stützer, Michael, 2008. "The Geography of Creative People in Germany," MPRA Paper 21965, University Library of Munich, Germany.
    34. Veblen, Thorstein, 1909. "The Limitations of Marginal Utility," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 17.
    35. Glaeser, Edward L. & Scheinkman, JoseA. & Shleifer, Andrei, 1995. "Economic growth in a cross-section of cities," Journal of Monetary Economics, Elsevier, vol. 36(1), pages 117-143, August.
    36. Gianmarco I.P. Ottaviano & Giovanni Prarolo, 2009. "Cultural Identity And Knowledge Creation In Cosmopolitan Cities," Journal of Regional Science, Wiley Blackwell, vol. 49(4), pages 647-662, October.
    37. Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
    38. Tadesse, Bedassa & White, Roger, 2008. "Do immigrants counter the effect of cultural distance on trade? Evidence from US state-level exports," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2304-2318, December.
    39. Annie Tubadji & Frank Pelzel, 2015. "Culture based development: measuring an invisible resource using the PLS-PM method," International Journal of Social Economics, Emerald Group Publishing, vol. 42(12), pages 1050-1070, December.
    40. Alberto Alesina & Eliana La Ferrara, 2003. "Ethnic Diversity and Economic Performance," Harvard Institute of Economic Research Working Papers 2028, Harvard - Institute of Economic Research.
    41. Rafael Di Tella & Robert MacCulloch, 2006. "Some Uses of Happiness Data in Economics," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 25-46, Winter.
    42. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 118(4), pages 1335-1374.
    43. Glaeser, E., 2005. "Edward L. Glaeser, Review of Richard Florida's The Rise of the Creative Class," Regional Science and Urban Economics, Elsevier, vol. 35(5), pages 593-596, September.
    44. Geert Hofstede, 2007. "Asian management in the 21st century," Asia Pacific Journal of Management, Springer, vol. 24(4), pages 411-420, December.
    45. Bedassa Tadesse & Roger White, 2011. "Emigrant Effects on Trade: Re-examining the Immigrant-trade Link from the Home Country Perspective," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 37(2), pages 281-302.
    46. Veblen, Thorstein, 1919. "The Vested Interests and the Common Man," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1919.
    47. Richard Florida & Charlotta Mellander, 2010. "There goes the metro: how and why bohemians, artists and gays affect regional housing values," Journal of Economic Geography, Oxford University Press, vol. 10(2), pages 167-188, March.
    48. Annie Tubadji & Peter Nijkamp, 2012. "Altruism to Strangers for our Own Sake: Domestic Effects from Immigration," Tinbergen Institute Discussion Papers 12-079/3, Tinbergen Institute.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Annie Tubadji & Vassilis Angelis & Peter Nijkamp, 2016. "Endogenous intangible resources and their place in the institutional hierarchy," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 36(1), pages 1-28, February.
    2. Jing Lin & Jianming Cai & Yan Han & He Zhu & Zhe Cheng, 2016. "Culture Sustainability: Culture Quotient (CQ) and Its Quantitative Empirical Application to Chinese Cities," Sustainability, MDPI, Open Access Journal, vol. 8(12), pages 1-12, November.
    3. Glenn C. Sutter & Tobias Sperlich & Douglas Worts & René Rivard & Lynne Teather, 2016. "Fostering Cultures of Sustainability through Community-Engaged Museums: The History and Re-Emergence of Ecomuseums in Canada and the USA," Sustainability, MDPI, Open Access Journal, vol. 8(12), pages 1-9, December.
    4. Marco Bellandi & Daniela Campus & Alessandro Carraro & Erica Santini, 2020. "Accumulation of cultural capital at the intersection of socio-demographic features and productive specializations," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 44(1), pages 1-34, March.
    5. Annie Tubadji & Peter Nijkamp, 2018. "Revisiting the Balassa–Samuelson effect: International tourism and cultural proximity," Tourism Economics, , vol. 24(8), pages 915-944, December.
    6. Lingling Ju & Dong Yan & Xiaoyan Wang & Shouzhong Hu, 2016. "Influence Model Research of Brand Culture on Home Textile Consumption Behavior," Journal of Business Administration Research, Journal of Business Administration Research, Sciedu Press, vol. 5(1), pages 34-41, April.
    7. Tubadji, Annie & Nijkamp, Peter, 2017. "Green Online vs Green Offline preferences on local public goods trade-offs and house prices," Socio-Economic Planning Sciences, Elsevier, vol. 58(C), pages 72-86.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Annie Tubadji & Peter Nijkamp, 2015. "Cultural Gravity Effects among Migrants: A Comparative Analysis of the EU15," Economic Geography, Clark University, vol. 91(3), pages 343-380, July.
    2. Annie Tubadji & Peter Nijkamp, 2015. "Cultural impact on regional development: application of a PLS-PM model to Greece," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 687-720, May.
    3. Aurélie LALANNE & Guillaume POUYANNE, 2012. "Ten years of metropolization in economics: a bibliometric approach (In French)," Cahiers du GREThA (2007-2019) 2012-11, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    4. Ottaviano, Gianmarco I.P. & Peri, Giovanni, 2005. "Cities and cultures," Journal of Urban Economics, Elsevier, vol. 58(2), pages 304-337, September.
    5. Gianmarco I.P. Ottaviano & Giovanni Peri, 2016. "The economic value of cultural diversity: evidence from US cities," World Scientific Book Chapters, in: The Economics of International Migration, chapter 7, pages 229-264, World Scientific Publishing Co. Pte. Ltd..
    6. Annie Tubadji & Peter Nijkamp, 2013. "Cultural Distance and Gravity Effects among Migrants," ERSA conference papers ersa13p484, European Regional Science Association.
    7. Tubadji, Annie & Nijkamp, Peter, 2016. "Impact of Intangible Cultural Capital on Regional Economic Development: A Study on Culture-Based Development in Greece," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 46(1).
    8. Ozbugday, Fatih Cemil, 2019. "Kültür ve Ekonomik Başarı [Culture and Economic Success]," MPRA Paper 96734, University Library of Munich, Germany.
    9. Niclas Berggren & Mikael Elinder, 2012. "Is tolerance good or bad for growth?," Public Choice, Springer, vol. 150(1), pages 283-308, January.
    10. Pritha Dev & Blessing U. Mberu & Roland Pongou, 2016. "Ethnic Inequality: Theory and Evidence from Formal Education in Nigeria," Economic Development and Cultural Change, University of Chicago Press, vol. 64(4), pages 603-660.
    11. Möller Joachim & Tubadji Annie, 2009. "The Creative Class, Bohemians and Local Labor Market Performance: A Micro-data Panel Study for Germany 1975–2004," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 229(2-3), pages 270-291, April.
    12. Ager, Philipp & Brückner, Markus, 2013. "Cultural diversity and economic growth: Evidence from the US during the age of mass migration," European Economic Review, Elsevier, vol. 64(C), pages 76-97.
    13. Christoph Alfken & Tom Broekel & Rolf Sternberg, 2015. "Factors Explaining the Spatial Agglomeration of the Creative Class: Empirical Evidence for German Artists," European Planning Studies, Taylor & Francis Journals, vol. 23(12), pages 2438-2463, December.
    14. Dev, Pritha & Mberu, Blessing & Pongou, Roland, 2013. "Communitarianism, Oppositional Cultures, and Human Capital Contagion: Theory and Evidence from Formal versus Koranic Education," MPRA Paper 46234, University Library of Munich, Germany, revised 15 Apr 2013.
    15. Jens Ruhose, 2015. "Microeconometric Analyses on Economic Consequences of Selective Migration," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61, November.
    16. Breuer, Janice Boucher & McDermott, John, 2013. "Respect, responsibility, and development," Journal of Development Economics, Elsevier, vol. 105(C), pages 36-47.
    17. Niclas Berggren & Therese Nilsson, 2013. "Does Economic Freedom Foster Tolerance?," Kyklos, Wiley Blackwell, vol. 66(2), pages 177-207, May.
    18. Scott L. Fulford & Ivan Petkov & Fabio Schiantarelli, 2020. "Does it matter where you came from? Ancestry composition and economic performance of US counties, 1850–2010," Journal of Economic Growth, Springer, vol. 25(3), pages 341-380, September.
    19. Camille Hémet & Clément Malgouyres, 2018. "Diversity and Employment Prospects: Neighbors Matter!," Journal of Human Resources, University of Wisconsin Press, vol. 53(3), pages 825-858.
    20. Gianmarco I. P. Ottaviano, 2014. "Immigration, Diversity and the Labour Market Outcomes of Native Workers: Some Recent Developments," CEP Discussion Papers dp1292, Centre for Economic Performance, LSE.

    More about this item

    Keywords

    Attitudes; CVI; Diversity; Productivity; Happiness; Social well-being; Z10; O31; O43; R11;
    All these keywords.

    JEL classification:

    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jculte:v:39:y:2015:i:3:p:277-303. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Springer Nature Abstracting and Indexing). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.