1. bookVolume 66 (2021): Issue 2 (August 2021)
Journal Details
First Published
06 Mar 2016
Publication timeframe
3 times per year
access type Open Access

The Main Determinants of Development –PLS Path Analysis Applied to the Factors of Endogenous Development

Published Online: 06 Sep 2021
Volume & Issue: Volume 66 (2021) - Issue 2 (August 2021)
Page range: 1 - 24
Journal Details
First Published
06 Mar 2016
Publication timeframe
3 times per year

Many empirical analyses have been based on the theory of endogenous development, referring to the utilisation of given resources and providing the framework of quantitative analysis. The concept can be especially important in the case of less favoured and/or rural areas. However, the empirical analyses of this widely used theory often neglect the countryside or lay minimal focus on them. The research project presented here investigates the key factors of endogenous development and their presence in the rural districts of Hungary. The main aim of the paper is the examination and explanation of the effects of each capital on development. The study provides a review of the academic literature of development theories, as well as the understanding and development of the concept over the last few decades. The paper briefly addresses the delimitation of the Hungarian countryside, and it also proposes a regression model for the explanation of development, including latent variables symbolising the forms of capital. The model is examined by applying partial least squares (PLS) path analysis, which shows the connections between each form of capital through a dynamic approach. The analysis conducted for the years of 2009, 2013 and 2017 indicates that the relationship between the capitals is defined by temporal differences. Similar interactions can be seen between the capitals in 2009 and 2013, but 2017 shows a completely different system of relations. Hence, the findings show that, in a rural context, the relations between the forms of capital vary considerably over time.


JEL Classification

AEIDL [European Association for Information on Local Development] (1999) Territorial competitiveness. Creating a territorial development strategy in light of the LEADER experience. Part 1. LEADER European Observatory AEIDL, Bruxelles, http://www.esponontheroad.eu/dane/web_espon_library_files/698/zl_competitivity.pdf Downloaded: 12 June 2019 Search in Google Scholar

Affuso, A., Camagni, R. (2010) Territorial Capital and Province Performance in the Latin Arch: An Econometric Approach. Politecnico di Milano. http://www.grupposervizioambiente.it/aisre/pendrive2010/pendrive/Paper/affuso1.pdf Downloaded: 12 November 2014 Search in Google Scholar

Amin, A. (1999) An Institutionalist Perspective on Regional Economic Development. International Journal of Urban and Regional Research, 23 (2), 365–378.10.1111/1468-2427.00201 Search in Google Scholar

Atkinson, R. (2013) Territorial Capital, Attractiveness and the Place-based Approach: the Potential Implications for Territorial Development. In Pálné Kovács, I., Scott, J., Gál, Z. (Eds.), Territorial Cohesion in Europe. For the 70th Anniversary of the Transdanubian Research Institute. IRS CERS HAS, Pécs, 297–308. Search in Google Scholar

Benko, G. (1997) A regionális fejlődés útjai: globálistól a lokálisig. Tér és Társadalom, 11 (2), 1–16.10.17649/TET.11.2.417 Search in Google Scholar

Bodnár G. (2011) What is rural?: Some Possible Methods to Define Rural Areas. In: Ferencz, Á. (Ed.), Erdei Ferenc VI. Tudományos Konferencia, Kecskeméti Főiskola Kertészeti Főiskolai Kar, Kecskemét, Vol. 1, 235-239. Search in Google Scholar

Braithwaite, K. (2009) Building on What You Have Got - A Guide to Optimising Assets. Carnegie UK Trust, Dunfermline, UK. Search in Google Scholar

Brasili, C., Saguatti, A., Benni, F., Marchese, A., Gandolfo, D. (2012) The Impact of the Economic Crisis on the Territorial Capital of Italian Regions. 52nd European Regional Science Congress. 21–25 August. Bratislava. http://wwwsre.wu.ac.at/ersa/ersaconfs/ersa12/e120821aFinal00646.pdf Search in Google Scholar

Camagni, R. (2008) Regional competitiveness: towards a concept of territorial capital. In Capello, R., Camagni, R., Chizzolini, B., Fratesi, U. (Eds.), Modelling regional scenarios for the enlarged Europe. Springer-Verlag, Berlin, 33–47.10.1007/978-3-540-74737-6_3 Search in Google Scholar

Camagni, R., Caragliu, A., Perucca, G. (2011) Territorial Capital. Relational and Human Capital. Draft version. Politecnico di Milano. Milano. http://www.grupposervizioambiente.it/aisre_sito/doc/papers/Camagni_Caragliu_Perucca.pdf Downloaded: 2 July 2015 Search in Google Scholar

Capello, R. (2007) Regional Economics. Routledge, Oxon. Search in Google Scholar

Capello, R. (2011) Location, Regional Growth and Local Development Theories. Aestimum, 58 (1), 1–25. Search in Google Scholar

Capello, R. (2012) Regional Economics: Theoretical Achievements and Challenges. Timisoara Journal of Economics, 18 (5), 313–335. Search in Google Scholar

Capello, R., Nijkamp, P. (2011) Regional growth and development theories revisited. In Stimson, R., Stough, R. R., Nijkamp. P. (Eds.), Endogenous Regional Development. Perspectives, Measurement and Empirical Investigation. Edward Elgar, Cheltenham, UK - Northampton, MA, USA, 301–324.10.4337/9781849804783.00020 Search in Google Scholar

Capello R., Perucca G. (2013) Do Eastern European Regions Move Towards an Endogenous Growth Pattern? A Diachronic Perspective of Regional Success Factors. GRINCOH Working Paper Series, Paper No. 1.15 Search in Google Scholar

Chant, S., McIlvaine, C. (2009) Geographies of Development in the 21st Century. An Introduction to the Global South. Edward Elgar, Cheltenham, UK-Northampton, MA, USA. Search in Google Scholar

Csatári B. (2001) A vidék földrajzi kérdései. In Dormány G., Kovács F., Péti M., Rakonczai J. (Eds.), A földrajz eredményei az új évezred küszöbén. SZTE TTK Természeti Földrajzi és Geoinformatikai Tanszék, Szeged, 1–9. http://geography.hu/mfk2001/cikkek/Csatari.pdf Downloaded: 8 October 2010 Search in Google Scholar

Dinya L. (2013) „Zöld” prioritások érvényesítése a megyei szintű területfejlesztési stratégiákban. Journal of Central European Green Innovation, 1 (1), 21–33. Search in Google Scholar

EC [European Comission] (2017) Competitiveness in low-income and low-growth regions. The lagging regions report. Commission Staff Working Document. Brussels. Search in Google Scholar

Egri, Z., Tánczos T. (2015) Spatial Layers and Spatial Structure in Central and Eastern Europe. Regional Statistics, 5 (2), 34–61.10.15196/RS05203 Search in Google Scholar

Enyedi Gy. (1998) Sikeres régiók, In Tények könyve: régiók. Greger-Delacroix, 409–411. Search in Google Scholar

ETC [ETC Foundation – Compas] (2007) Learning Endogenous Development - Building on Bio-cultural Diversity. ETC Foundation – Compas, Bourton on Dunsmore, Rugby, Warwickshire, UK. Search in Google Scholar

Henseler J., Ringle C. M., Sarstedt M. (2015) A New Criterion for Assessing Discriminant Validity in Variance-based Structural Equation Modeling. Journal of the Academy of Marketing Science, 43 (1), 115–135.10.1007/s11747-014-0403-8 Search in Google Scholar

Henseler J., Ringle C. M., Sinkovics R. R. (2009) The use of partial least squares path modeling in international marketing. New Challenges to International Marketing (Advances in International Marketing, Vol. 20), 277–319.10.1108/S1474-7979(2009)0000020014 Search in Google Scholar

Hoff, K., Stiglitz, J. E. (2001) Modern Economic Theory and Development. In Meier, G. M., Stiglitz, J. E. (Eds.), Frontiers of Development Economics. The Future in Perspective. World Bank - Oxford University Press, Oxford-Washington, 389–459. Search in Google Scholar

Jóna Gy. (2013) A területi tőke kistérségi jellegzetességei. Doctoral Dissertation. Szent István Egyetem Enyedi György Regionális Tudományok Doktori Iskola, Gödöllő. Search in Google Scholar

Kitson, M., Martin, R., Tyler, P. (2004) Regional Competitiveness: An Elusive yet Key Concept? Regional Studies, 38 (9), 991–999.10.1080/0034340042000320816 Search in Google Scholar

Kovács P. – Bodnár G. (2017) Examining the Factors of Endogenous Development in Hungarian Rural Areas by Means of PLS Path Analysis. Regional Statistics, 7 (1), 90–114.10.15196/RS07106 Search in Google Scholar

Lengyel I. (2012a) Regionális növekedés, fejlődés, területi tőke és versenyképesség. In Bajmócy Z., Lengyel I., Málovics Gy. (Eds.), Regionális innovációs képesség, versenyképesség és fenntarthatóság. JATEPress, Szeged, 151–174. Search in Google Scholar

Lengyel I. (2012b) A hazai területfejlesztés zsákutcái: a triális Magyarország. In Rechnitzer J., Rácz Sz. (Eds.), Dialógus a regionális tudományról. Széchenyi István Egyetem Regionális- és Gazdaságtudományi Doktori Iskola, Magyar Regionális Tudományi Társaság, Győr, 140–150. Search in Google Scholar

Lengyel I. (2017) Competitive and uncompetitive regions in transition economies: the case of the Visegrad post-socialist countries. In Huggins, R., Thompson, P. (Eds.), Handbook of Regions and Competitiveness. Contemporary Theories and Perspectives on Economic Development. Edward Elgar, Cheltenham, UK – Northampton, MA, USA, 398-415.10.4337/9781783475018.00026 Search in Google Scholar

Lengyel I., Szakálné Kanó I. (2012) Competitiveness of Hungarian Urban Micro-regions: Localization Agglomeration Economies and Regional Competitiveness Function. Regional Statistics, 2 (2), 27–44.10.15196/RS02103 Search in Google Scholar

Lewis, W. A. (1988) The Roots of Development Theory. In Chenery H., Srinivasan, T. N. (Eds.), Handbook of Development Economics. (Vol. I.) Elsevier, Amsterdam, 27–37. Search in Google Scholar

Milone, P., Ventura, F., Berti, G. & Brunori, G. (2010) Some Notes on the Identification of Rural Webs. In Milone, P., Ventura, F. (Eds.), Networking the Rural. Royal Van Gorcum, Assen, The Netherlands, 30–48. Search in Google Scholar

Münnich Á., Hidegkuti I. (2012) Strukturális egyenletek modelljei: oksági viszonyok és komplex elméletek vizsgálata pszichológiai kutatásokban. Alkalmazott Pszichológia, 15 (1), 77–102. Search in Google Scholar

Pociūtė-Sereikienė, G., Kriaučiūnas, E., Ubarevičienė, R. (2014) Peripheralisation trends in rural territories: the case of Lithuania. Studies in Agricultural Economics, 116 (3), 122-130.10.7896/j.1421 Search in Google Scholar

Rechnitzer J. (2016) A területi tőke a városfejlődésben. A Győr-kód. Dialóg Campus Kiadó, Budapest-Pécs.10.1556/9789630598293 Search in Google Scholar

Robbins, L. (1968) The Theory of Economic Development int he History of Economic Thought. London-Basingstoke, Macmillan.10.1007/978-1-349-00149-1 Search in Google Scholar

Sen, A. (1988) The Concept of Development. In Chenery H., Srinivasan, T. N. (Eds.), Handbook of Development Economics. (Vol. I.) Elsevier, Amsterdam, 9–26. Search in Google Scholar

Smętkowski M. (2018) The role of exogenous and endogenous factors in the growth of regions in Central and Eastern Europe: the metropolitan/non-metropolitan divide in the pre- and post-crisis era. European Planning Studies, 26 (2), 256-278.10.1080/09654313.2017.1361585 Search in Google Scholar

Stimson, R., Stough, R. R., Nijkamp. P. (2011) Endogenous Regional Development. In Stimson, R., Stough, R. R., Nijkamp. P. (Eds.), Endogenous Regional Development. Perspectives, Measurement and Empirical Investigation. Edward Elgar, Cheltenham, UK - Northampton, MA, USA, 1–19. Search in Google Scholar

Stimson, R., Stough, R. R. & Salazar, M. (2009) Leadership and Institutions in Regional Endogenous Development. Edward Elgar, Cheltenham, UK – Northampton, MA, USA.10.4337/9781848449435 Search in Google Scholar

Szentes T. (2011) Fejlődés-gazdaságtan. Akadémiai Kiadó, Budapest. Search in Google Scholar

TeIR (2021): TeIR database, www.teir.hu and http://uj.lechnerkozpont.hu/en/oldal/teir Search in Google Scholar

Todaro, M. P., Smith, S. C. (2009): Economic Development. (11th ed) Addison-Wesley, Boston. Search in Google Scholar

Tödtling, F. (2009) Endogenous Regional Development. In Kitchin, R., Thrift, N. (Eds.), International Encyclopedia of Human Geography, Elsevier, Oxford, 208–213.10.1016/B978-008044910-4.00837-3 Search in Google Scholar

Tóth B. I. (2013) A területi tőke szerepe a regionális- és városfejlődésben – Esettanulmány a magyar középvárosok példáján. Doktori értekezés. Nyugatmagyarországi Egyetem Széchenyi István Gazdálkodás- és Szervezéstudományok Doktori Iskola, Sopron. Search in Google Scholar

Tóth. B. I. (2014) A hazai kistérségek vonzerejének és területi tőkéjének néhány összefüggése. Területi Statisztika. 54 (1), 3–18. Search in Google Scholar

Tubadji, A., Nijkamp. P. (2015) Cultural impact on regional development: application of a PLS-PM model to Greece. The Annals of Regional Science, 54 (3), 680–720.10.1007/s00168-015-0672-2 Search in Google Scholar

Vázquez-Barquero, A., Rodríguez-Cohard, J. C. (2016) Endogenous Development and Institutions: Challenges for Local Development Initiatives. Environment and Planning C: Government and Policy, 34 (6), 1135–1153. Search in Google Scholar

Vermeire, B., Gellynck, X., De Steur, H., Viaene, J. (2008) The role of social capital assets in reconciling endogenous and exogenous drivers of rural renewal. 8th European IFSA Symposium, 6 - 10 July 2008, Clermont-Ferrand, France, http://ifsa.boku.ac.at/cms/fileadmin/Proceeding2008/2008_WS6_06_Vermeire.pdf Downloaded: 21 July 2014 Search in Google Scholar

Recommended articles from Trend MD

Plan your remote conference with Sciendo