Transcript of 289 NUTS regions in Europe with subjective indicators for human

Estimating gross domestic
product (GDP) of 289 NUTS
regions in Europe with
subjective indicators for
human and social capital
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The Department of Geosciences and Geography, Division of Urban Geography and
Regional Studies/ Mikko Weckroth
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Outline
1. Aim of the study – what, why and how
2. Economy, happiness and causality
3. Method and data
4. Social well-being as social capital
5. Personal well-being as human capital
6. Descriptive statistics
7. Scatter plots
8. Regression models
9. Interaction terms
10. Conclusions
11 Discussion and future research
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Aim of the study

Spatial interdepence between economic well-being
(GDP) and personal and social well-being (SWB)

Life satisfaction masks important information on the
relationship between the objective and subjective
well-being

Focus on ”functioning and flourishing” measures in
SWB instead of life evaluations

Multidisciplinarity approach instead of spatial
econometric analysis
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Economy, happiness and
causality ?
-
The link between happiness and wealth ?
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SWB studies as growth critique
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Regional studies have focused only on life satisfaction
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Three traditions in SWB research
(1) life evaluations account (evaluative measures),
(2) the hedonistic account (affect measures)
(3) the eudaimonic account (flourishing and functioning
measures)
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SWB
Life satisfaction
GDP
SWB
Flourishing and
functioning measures
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Method and data
-
European Social Survey and Eurostat data
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ESS 2012 includes module on functioning measures of
SWB (14 items on social and personal wellbeing each )
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Control variables from Eurostat: employment rate,
density, education level, governance Index, and R&D
expenditure
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GDP = control variables + social capital + human capital
(+ adjustments for spatial autocorrelation of NUTS)
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37 956 individuals nested in 297 NUTS in 24 countries
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Social well-being as social
capital
-
Briding and bonding social capital
-
Social capital and economic outcomes ?
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Social capital in ESS:
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`Social trust´
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`Reciprocity´
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`Local regognition´
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`Social contact and support´
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Rotated Factor Loadings
Item
Most people can be trusted, or that you can´t be too
carefull in dealing with people
Most people would try to take advantage of you if they
got a chance, or they would try to be fair
Most of the time people try to be helpful or that they are
or they are mostly looking out for themselves
Social trust
Local
Social contact
Reciprocity recognition and support
,757
,754
,656
To what extent do you receive help and support from
people you are close to when you need it
To what extent do you provide help and support to
people you are close to when they need it
To what extent do you feel appreciated by people you are
close to
How much of a time during the past week you felt lonely
,753
,662
,563
-,281
To what extent you feel that people in your local area
help one another
To what extent you feel close to the people in local area
,839
-,491
To what extent you feel people treat you with respect
Compared to other people of your age, how often would
you say you take part in social activities
How often do you socially meet with friends, relatives or
colleagues
How many
people, if any, are there with whom you can
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discuss intimate and personal matters
In past 12 months, how often did you get Involved in
work for voluntary or charitable organisations
-,224
,343
,479
,613
,579
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,434
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-,302
Personal well-being as
human capital
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Education based human capital (Gleaser) vs.
creativity based (Florida)
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Indivual asset treated as common good
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Human capital in ESS:
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`Engagement´
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`Compentence and meaning´
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`Resilience´
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`Autonomy and control´
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Rotated Factor Loadings
Item
How much of the time would you generally say you are
absorbed in what you are doing
How much of the time would you generally say you are
enthusiastic about what you are doing
How much of the time would you generally say you are
interested in what you are doing
I generally feel that what I do in life is valueable and
worthwhile
Most days I feel a sense of accomplishment from what I
do
There are lots of things I feel I am good at
I feel that I am free to decide how to live my life
To what extent do you feel that you have a sense of
direction in your life
To what extent do you make time to do things you really
want to do
When things go wrong in my life it generally takes me a
long time to get back to normal
How difficult or easy do you find it to deal with important
problems that come up in your life?
In my daily life I get a very little chance to show how
capable I am
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How much of the time during the past week you had lot
of energy
To what extent you learn new things in life
Engagement
Competence
Autonomy
and meaning Resilience and control
,858
,201
,765
,260
,752
,252
-,204
-,670
-,200
-,528
,230
,218
,224
-,211
-,230
-,493
-,344
,300
,339
-,315
,312
,234
,332
,454
,623
,475
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,368
10
,270
,326
,308
,322
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,255
,296
Descriptive Statistics
Mean Std. Dev.
Regional GDP
GDP log
Min
Max
N
22941
4,2513
14295
0,342
2600
3,41
72600 289
4,86 289
-,03
,01
,02
,00
,278
,226
,232
,161
-1,051
-1,026
-,750
-,530
,706
,644
,521
,385
289
289
289
289
,00
,05
,02
,02
,421
,234
,224
,281
-1,584
-,787
-,576
-,734
,792
,671
,778
,614
289
289
289
289
252,5
679,7
1
7131 289
26,53
8,65
9,9
55,7 272
Human capital
Engagement
Competence and meaning
Resilience
Autonomy and control
Social Capital
Social trust
Reciprocity
Local recognition
Social contact and support
Control variables
Population density
Tertiary educated (% of total
population)
RD expenditure
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EQI index
448,8
,170
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-2,48
2962 282
1,90 282
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Unadjusted regression estimates
OLS
Constant
Human capital
Engagement
Competence and meaning
Recilience
Autonomy and control
Social Capital
Social trust
Reciprocity
Local recognition
Social contact and support
Control variables
Population density (log)
Tertiary education (log)
RD expenditure (log)
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nimi / Esityksen
Employment
(log)nimi
EQI index
OLS
2.878 ***
Spatial
filtering
2.589
***
0.069
0.815***
0.944***
0.663***
-0.003
0.155***
0.097
-0.199**
0.569***
0.237*
-0.210*
0.786***
0.118***
0.014
-0.037
0.221***
0.150***
0.131***
1.360***
0.464***
4.413 ***
0.263***
0.078 ***
-0.203 **
0.302 ***
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0.022
0.078***
-0.212***
0.323***
0.576***
0.167***
-0.162***
0.234***
Interaction terms

Bridging or bonding social capital?

´Social trust´ (0.150***) X ´social contact
and support (0.234***)´ has 0.209***
effect

Education based or ”creativity” based
human capital?

´Competence and meaning´ (0.167***) X
´Education rate´ (-0.212*) has a positive
effect of 0.656***
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Conclusions
-
´Social trust´, ´ Social contact and support´ and
´compentence and meaning´ have robust and positive
association to regional economic perfomance
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Bridging and bonding social capital are associated with high
GDP in a cross-sectional analysis
-
Subjective human capital (`competence and meaning´) is
associated with high GDP while education based (´tertiary
education`) is not
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Discussion and what next
-
Enlargement to the conceptual toolbox for objective and
subjective well-being comparisons
-
Policies focusing on positive functioning of population might
carry economic outcomes
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European Social Survey data should be utilized for regional
analysis
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Time series analysis with ESS
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More exact measures for economic productivity
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Inequality rather than aggeregates
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Thank you for your
attention!
Weckroth, M. T. K., Kemppainen, T., & Sørensen, J. F. L. (2015).
Predicting GDP of 289 NUTS Regions in Europe with Subjective
Indicators for Human and Social Capital. Regional
Studies,Regional Science, 2(1), 311-330.
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