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A Pls Path Model To Investigate The Relations Between Institutions And Human Development

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  • Silvia Terzi
  • Attilio Trezzini
  • Luca Moroni

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Abstract

The paper studies the relations between types of institutions on different components of human development. A role of aggregate demand in determining the material components of human development is assumed. We thus divide institutions into those that create demand and those that are determined by the whole process of development. Similarly we divide human development in its three traditional components (economic development, health, knowledge). Both human development and institutions are assumed as multidimensional constructs; all the main components of these constructs are defined as latent variables, and the relations between them as structural relations. A Partial Least Squares (PLS) path model is developed: it is the aggregation (and simultaneous estimation) of an outer model relating observed or manifest variables to their own latent variable and of a structural model (inner model) relating some endogenous latent variable to other latent variables. From the goodness of fit point of view, our results seem to validate our theoretical assumptions.

Suggested Citation

  • Silvia Terzi & Attilio Trezzini & Luca Moroni, 2012. "A Pls Path Model To Investigate The Relations Between Institutions And Human Development," Departmental Working Papers of Economics - University 'Roma Tre' 0145, Department of Economics - University Roma Tre.
  • Handle: RePEc:rtr:wpaper:0145
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    Cited by:

    1. Urban Pauli, 2015. "SMEs GROWTH AND HUMAN CAPITAL INVESTMENTS (THE CASE OF POLAND)," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    2. Sorin Romulus Berinde & Partenie Dumbrava, 2015. "CORPORATE GOVERNANCE CHOICE REGARDING SMEs FINANCING STRATEGIES IN ROMANIA," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    3. Cornelia Pop, 2015. "Bucharest Stock Exchange Development Between 1995 And 2015," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    4. Maria-Lenuta Ciupac-Ulici, 2015. "Did European Countries Suffer From Different Calculation Of Hdi?," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    5. Ioan Cristian Chifu & Waseem Eid & Ioan Alin Nistor, 2015. "IT SECTOR DEVELOPMENT IN CLUJ-NAPOCA. THE CASE OF SMEs," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.

    More about this item

    Keywords

    Structural Equations Models; Institutions; Human Development;

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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