Determinants of Sustainable Cross-Border Cooperation: A Structural Model for the Hungarian Context Using the PLS-SEM Methodology

Galina Anatolievna Khmeleva, Marina Viktorovna Kurnikova, Erzsébet Nedelka and Balázs István Tóth
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Galina Anatolievna Khmeleva: Department of World Economy, Samara State University of Economics, 443090 Samara, Russia
Marina Viktorovna Kurnikova: Department of Regional Economy and Management, Samara State University of Economics, 443090 Samara, Russia
Erzsébet Nedelka: Alexandre Lamfalussy Faculty of Economics, University of Sopron, HU-9400 Sopron, Hungary
Balázs István Tóth: Alexandre Lamfalussy Faculty of Economics, University of Sopron, HU-9400 Sopron, Hungary

Sustainability, 2022, vol. 14, issue 2, 1-21

Abstract: The importance of this research stems from the need to ensure the sustainability of cross-border cooperation through a better understanding of its determinants and causal relationships. While having common features and patterns, cross-border cooperation is always expressed through the relations of specific countries and peoples. Therefore, based upon the PLS-SEM methodology, the authors consider the fundamental factors influencing the external cooperation of Hungary’s transboundary regions. The advantage of the PLS-SEM method is that it enables researchers to simultaneously identify and approximate hidden connections between input data and to construct a regression model describing the relationship between input data. Despite widespread application in economic studies, the authors have not found the use of PLS-SEM for studying cross-border cooperation issues in the current scientific literature. The authors have built a model to assess the hidden factors of cross-border cooperation and to identify the indirect influence of certain factors. The novelty of the research is to identify the determinants of sustainable cross-border cooperation and the relationship between them in a multi-level system of cross-border interaction between businesses, people, and the State. In the Hungarian context, transport infrastructure and business travel are shown to have a direct positive impact on cross-border cooperation. For the first time, tourism and socio-economic conditions have been shown to have powerful but indirect impacts. This work could be the beginning of gathering new evidence on the determinants and causation of cross-border cooperation in the context of other countries. An important finding of the study is the growing importance of indicators of the new, post-industrial economy. As for recommendations, the authors focus on state, regional, and municipal support measures, awareness of the possibilities of cross-border cooperation, the need to develop e-commerce, and alternative energy as a modern basis for converting Hungary’s cross-border position into a competitive advantage.

Keywords: cross-border cooperation; structural model; PLS-SEM; international integration; sustainable; Hungary; tourism; transport infrastructure; business trips (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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