A PLS path model to investigate the relations between institutions and human development

Silvia Terzi, Attilio Trezzini () and L. Moroni ()

Quality & Quantity: International Journal of Methodology, 2014, vol. 48, issue 3, 1290 pages

Abstract: The paper studies the relations between institutions and human development, in particular the causal effects of the different types of institutions on different components of human development. We assume development to be created by aggregate demand; in particular that aggregate demand determines the material components of human development. 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 to be 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. Copyright Springer Science+Business Media Dordrecht 2014

Keywords: Structural equations models; Institutions; Human development; Economic growth (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://hdl.handle.net/10.1007/s11135-013-9834-4 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: A PLS PATH MODEL TO INVESTIGATE THE RELATIONS BETWEEN INSTITUTIONS AND HUMAN DEVELOPMENT (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:qualqt:v:48:y:2014:i:3:p:1271-1290

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11135

DOI: 10.1007/s11135-013-9834-4

Access Statistics for this article

Quality & Quantity: International Journal of Methodology is currently edited by Vittorio Capecchi

More articles in Quality & Quantity: International Journal of Methodology from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().