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DOI: https://doi.org/10.34069/AI/2024.73.01.21
How to Cite:
Grigorova, D.S. (2024). Cultural aspects of model formation of socio-economic development in eu regions: a comparative
analysis. Amazonia Investiga, 13(73), 252-262. https://doi.org/10.34069/AI/2024.73.01.21
Cultural aspects of model formation of socio-economic development in
eu regions: a comparative analysis
КУЛЬТУРНЫЕ АСПЕКТЫ ФОРМИРОВАНИЯ МОДЕЛИ СОЦИАЛЬНО-
ЭКОНОМИЧЕСКОГО РАЗВИТИЯ РЕГИОНОВ ЕС: СРАВНИТЕЛЬНЫЙ АНАЛИЗ
Received: December 23, 2023 Accepted: January 28, 2024
Written by:
Darya Sergeevna Grigorova1
https://orcid.org/0000-0003-3016-0817
Abstract
The article reveals the actual problem of cultural
influence on the socio-economic development of
the regions in the European Union. The research
goal is to compare socio-cultural differences,
which are significant factors for determining the
vectors of socio-economic development of
European countries. The article presents the
results of an empirical study of the cultural
components of regional models of socio-
economic development on the example of some
countries of the European Union.
The research materials were official statistics and
expert assessments obtained as a result of a
survey of specialists from various academic
research structures on the social network Twitter.
The total number of respondents from 9
European universities was 900 people.
The research methodology is based on a socio-
cultural approach, includes the methods of the
general scientific group and of special methods:
historiographic analysis of scientific literature on
the research topic, the method of comparative
analysis, the method of sociological survey,
statistical analysis, quantitative and qualitative
research methods.
Based on the empirical study, the following
results were obtained: as the main cultural
components that determine the specifics of the
socio-economic development of the EU regions,
the experts identified the historical context,
national mentality, as well as value attitudes of
behavior.
Key words: models of development of EU
regions, regional economy, sustainable
1
Doctoral student Baltic International Academy, Riga, Latvia. WoS Researcher ID: JWO-3466-2024
Grigorova, D.S. / Volume 13 - Issue 73: 252-262 / January, 2024
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development, socio-economic differences,
culture of European countries.
Introduction
The topic relevance lies in the fact that the
economic development of the European Union
remains uneven and includes a number of
problems that have yet to be solved. The
researchers note that one of the most serious
problems of European integration is that different
regions of the EU implement different economic
models. On the one hand, this enriches the
economic policy due to the presence of different
approaches to economic policy, and on the other
hand, it hinders the development of a common
policy on many issues (Bakry, 2023a, p. 189).
At present, it is customary to distinguish the
following main modeling characteristic of the
EU regions.
1. In Western Europe, the German model and
the French model of development stand out.
The economic (more precisely, socio-
economic) model of post-war Germany was
formed under the influence of several areas
of scientific thought: the liberal Freiburg
School, social liberalism and neoliberalism.
In this model indicators of state activity in
the economy are quite moderate by
European standards. In recent years, the state
quota (total expenditures of the federal, land
and local budgets in relation to GDP) has
fluctuated in the range of 45-46% of GDP
(Groth, 2022, p. 22). The public sector
employs about 15% of the working-age
population, and the total tax quota (taxes,
fees and social contributions) is at the
average European level and amounts to
about 40% of GDP (UNCTAD, 2023b). A
special place in the economy is occupied by
small and medium-sized businesses, whose
contribution to the country’s GDP is about
54%, they employ 58% of workers
(UNCTAD, 2023a). Germany is one of the
few developed countries that has retained a
significant industrial sector in the economy.
Its share in the structure of GDP is 25-26%
(without construction). Key industries:
machine-building complex (primarily
automotive), chemical complex (including
pharmaceuticals). The German economy has
a pronounced export-oriented character. The
export quota for goods is 39% of GDP, and
together with the export of services - 47.5%
of GDP. In a number of key industries, the
share of exports reaches 70% or more
(UNCTAD, 2023a). The German economy
demonstrates exceptional resilience, the
country remains the leading economy of the
EU (21% of its GDP) (UNCTAD, 2023b).
Unlike Germany, the specificity of the French
model is the traditionally high role of the state in
the economy and social sphere. France is among
the countries with a very high level of human
development, ranking 27th in the world,
according to UNCTAD (UNCTAD, 2023b). The
key problems of France's economic development
remain the chronic state budget deficit (since
1975, the budget has never been reduced to a
surplus, the deficit peaked in 2009 (7.2% of
GDP) and in 2022 amounted to 3% of GDP) and
the increase in public debt: 59 and 98% of GDP
in 2000 and 2022, respectively (UNCTAD,
2023b). In the social sphere, one of the main
problems is the aging of the population (in 2022,
the share of people over 65 in the total number of
inhabitants reached 22%), which leads to a
deterioration in the demographic burden ratio of
the older generation (32.5 in 2022 versus 24.3
and 25.6 in 2000 and 2010, respectively) and
creates certain difficulties in the context of the
crisis of social policy in the country (UNCTAD,
2023c). Another social problem is mass
unemployment (8.5% in 2019, one of the highest
rates in the EU), with a consistently high
unemployment rate among those under 25 years
of age - 20% of the population (UNCTAD,
2023b).
2. Southern Europe is represented by the model
of economic development in Italy and Spain.
The Italian economic system is
characterized not only by economic
pluralism, the combination of private and
public property, but also by active state
regulation, mainly through indicative
planning. Italy is still characterized by
regional disparities between the rich north
and the catching-up south and, as a result,
acute social contradictions and problems
remain. About a third of the labor force is
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concentrated in the south, but
unemployment is more than 20% (more than
50% for young people) (UNCTAD, 2023b).
As in other EU countries, Italy's economy is
largely export-oriented. The Spanish model
is characterized by a relatively low role of
the state for European countries (public
spending in 2022 amounted to 43% in
relation to GDP versus 58% in France)
(UNCTAD, 2023c).
The Spanish economic model is also
characterized by the predominance of micro,
small and medium-sized enterprises, which
employ almost 72% of the workforce (including
41% in microenterprises), which is significantly
higher than the EU average (UNCTAD, 2023b).
Thus, small business face a number of
difficulties: they do not receive sufficient
government support, have problems with
entering the markets of other EU countries, and
also lag behind companies from other EU
countries in terms of internationalization. Spain
lags far behind European leaders in the field of
high technology, which may be due to the fact
that R&D spending is insufficient, it amounts to
1.2% of GDP, while the EU average is 2%
(UNCTAD, 2023a). As a result, Spain
traditionally lags behind the EU as a whole in
terms of the share of high-tech exports in total
industrial exports – 7% versus 16% (26% in
France) (UNCTAD, 2023a).
3. The socio-economic models in the countries
of Eastern Europe are characterized by a
combination of institutions of the liberal
(Anglo-Saxon) economy, the institutions of
the market economy (as in many countries of
continental Europe) and the institutions of
the socialist period that have been preserved
in a modified form. Contrary to the
expectations of the population that the first
post-socialist governments in the CEE
countries would contribute to the formation
of a corporatist model of relations between
labor and capital, similar to Western
European countries, the labor market was
farmed out to large TNCs (Bakry, 2023b,
p. 106). Foreign investors were supporters of
the deregulation of labor legislation
following the experience of the Anglo-
Saxon states and the individualization of
labor relations.
As a result, the economic systems that have
developed in them have become largely an
institutional hybrid model. In the countries of
Eastern Europe, corporate governance is built
primarily on the basis of the relationship between
the heads of local branches and their
headquarters, while local managers have limited
powers: they can independently make decisions
in the field of operational management, but
strategic decisions are made in parent companies.
Another common feature of the economic
models of Eastern European countries is the
dominance of foreign capital in the economy. A
specific feature of these models is economic
development based on the borrowing of
technologies. Within the framework of the
above-described regional model, there are
varieties. Among them, several can be
conditionally distinguished: the model of the
Baltic countries, the model of Hungary, Poland,
Slovakia, the Czech Republic and the model of
Slovenia (UNCTAD, 2023c).
Literature review
All of the above data suggest that the regional
development of the EU is heterogeneous, which
is associated not only with historical,
demographic, geographical and geopolitical
factors, but also with the cultural characteristics
of the countries of Western, Southern and
Eastern Europe. Meanwhile, the study of the
cultural aspects of the socio-economic
development of the EU countries will reveal not
only material, but also subjective, cultural
aspects that can have both positive and negative
impact on economic development (Labianca,
2020, p. 1803).
Among the cultural aspects influencing the
socio-economic development of the EU
countries, researchers identify the following
factors:
− mentality (Vogel and Will, 2023, p.47);
− historical context (Thatcher, 2019, p. 128);
− value behavioral attitudes (Serban et al.,
2023, p. 420).
We take these aspects as criteria for comparative
analysis in the empirical part of the study.
The historiography is quite extensive, but mainly
focused on mathematical models and economic
factors in the development of EU regions, taking
into account some cultural differences. Thus, the
theoretical aspects of regional development
models in the EU are considered in the works by
such authors as D. Soto-Oñate, G. Torrens
(2022), V. Omelyanenko, O. Omelyanenko
(2019), J. Premović, L. Arsić (2020),
M. Proskurina (2022), B. Salikhov, I. Salikhova
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(2022), I. Schäfer, Y. Khoudja, D. Grunow
(2022).
Of methodological interest are the works by
M. Jagódka & M. Snarska (2022), T. Juric
(2023), M. Kruse, C. Somcutean, J. Wedemeier
(2023), O. Labianca (2020), E. Mamatzakis,
L. Neri, A. Russo (2023), T. Marzal (2023), since
they present a matrix analysis of the economic
models of EU development, a comparative
analysis of cultural factors of regional
development, etc.
At the same time, in the empirical works by
L.H. Anders (2023), A. Bakry (2023a, 2023b),
R. Brandtjen (2023), S. Ferran-Vila, G. Miotto,
J. Rom-Rodríguez (2022), Garashchuk, Castillo,
Rivera (2023), S. Groth (2022), R. Higgott
(2020), the main emphasis is on the study of
formal macroeconomic indicators, without
taking into account the socio-cultural factors of
regional development in the European Union.
Meanwhile, in the works by such authors, it is
argued that a number of cultural aspects that
distinguish the mentality of Western, Southern
and Eastern Europe are the basic cultural
invariant for modeling socio-economic
development.
Thus, the study of the cultural influence on the
socio-economic models of the development of
the EU regions will significantly supplement the
existing historiography, as well as make a certain
contribution to the scientific development of the
general problem of the correlation between
culture and the economy.
Materials and methods
The research materials were expert assessments
obtained as a result of a survey of specialists from
various academic research structures in the EU.
The survey was conducted on the social network
Twitter.
The total number of respondents was 900 people.
Of these, a representative sample of 90 people
was formed by the method of mechanical
sampling (according to the principle of every
tenth), divided into three expert groups of 30
people from 9 European universities.
A questionnaire was created for them with
questions, the answers to which clarified the
position of experts on the impact of cultural
components on the socio-economic development
of the EU regions.
Table 1.
Distribution of respondents according to the criteria of European regions and academic institutions.
University and region
Respondents’ number
Western Europe
1 expert group
Akkon Graduate School for the Humanities (Germany)
15
Faculty of Humanities Sorbonne (France)
7
Ghent University (Belgium)
8
South Europe
2 expert group
International University of Languages and Media (Italy)
9
Autonomous University of Madrid (Spain)
6
Greek Open University (Greece)
15
Eastern Europe
3 expert group
State Eastern European University in Przemysl (Poland)
8
Eötvös University of the Humanities (Hungary)
8
Transylvanian University of Brasov (Romania)
14
Experts assessed the problem of the main cultural
aspects on the models of socio-economic
development in the EU countries. As a result, it
was possible to identify common cultural aspects
and transform them into three criteria: national
mentality, historical context, and value attitudes
of behavior.
The research methodology is based on a socio-
cultural approach and includes the methods of the
general scientific group (analysis, synthesis,
induction, deduction), as well as a number of
special methods: historiographic analysis of
scientific literature on the research topic, the
method of comparative analysis, the sociological
survey (method of expert assessment,
questionnaires), statistical analysis, quantitative
and qualitative research methods.
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Table 2.
Research methods by groups and research objectives
Method group
Research objectives
General scientific methods
Scientific synthesis of the information received Research of scientific literature on the research topic
Special methods
Sociological research, Statistical analysis survey results Quantitative and qualitative research methods.
For processing 90 questionnaires with survey
data we used a special program Neural Designer,
a tool for advanced, predictive and prescriptive
analytics. All qualitative data (respondents'
answers) were translated into quantitative
format.
Table 3.
Criteria for the influence of cultural aspects to the socio-economic development in EU regions
Criterion
Framing expert review
The national mentality impact on
regional economic model
Expert assessment with comments on effect (positive / negative)
The historical context impact on
regional economic model
Expert assessment with comments on effect (positive / negative)
The value behavioral pattern on
regional economic model
Expert assessment with comments on effect (positive / negative)
Experts analyzed the impact of cultural aspects
on the regional development models in the EU
countries, giving their comments on what kind of
effect such an impact gives - positive or negative.
These comments were reflected in the
questionnaire as additional information, which
made it possible to identify in more detail the
experts’ position on each of the criteria (Table 4).
Table 4.
Methodology for assessing the criteria of problems in two categories
Criterion
Rating scale
National mentality
1-3 low level 4-6 average level 7-10 high level
Historical context
Value behavioral attitude
All three criteria were evaluated by experts on a
10-point scale, according to the increasing
influence of a particular cultural aspect on the
model of socio-economic development in each
region: 1-3 low level, 4-6 medium level, 7-10
high influence level. The empirical study
consisted of three stages: 1) preliminary stage; 2)
the main stage; 3) analysis of the results (Table
5).
Table 5.
Timing and content of the stages of empirical research
Research stage
Stage content
Timing
Preliminary stage
Negotiations with potential respondents
regarding participation in the study. Formation of a representative sample
and formulation of the questionnaire.
1-12 February 2023
Main stage
Conducting a survey on the social
network Twitter, collecting expert
answers.
14 March 2023
Analysis of results
Analyzing results using a statistical
Neural Design program
22 March - 18 April 2023
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The empirical study was conducted from
February 1 to April 18, 2023. The results of the
empirical study are shown below.
Results and discussion
Based on the results of a survey in the first group
of respondents from universities in Africa and
Europe, the following results were obtained
(Figure 1).
Figure 1. Assessment by 1st expert group of cultural components’ influence on models of socio-economic
development
(compiled by the author using the Neural Designer program)
As can be seen from the data shown in Figure 1,
the experts in the first group (Western European
universities) highly appreciated the level of
influence of all three components on the models
of socio-economic development in Western
European countries, except for Germany, as well
as on the countries in Southern Europe.
According to experts, the mentality and historical
context are less important than value behavioral
attitudes for the German development model.
At the same time, the experts noted the moderate
influence of the cultural context on the socio-
economic development of Eastern Europe,
arguing that the region was characterized by a
«historical trauma of socialism» and a «painful
exit from the socialist economy to a new market
model».
Similar results were obtained in a survey of the
second group of respondents from universities in
Southern Europe (Figure 2).
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Figure 2. Assessment by 2nd expert group of cultural components’ influence on models of socio-economic
development
(compiled by the author using the Neural Designer program)
As can be seen from the data in Figure 2, experts
from the Southern European Universities rated at
a high level the influence of all cultural
components on the models of Western Europe
(including Germany) and on the models of
Southern Europe. According to experts, cultural
aspects have a moderate influence only on the
countries of Eastern Europe.
On this, the two groups of experts were in
complete agreement. However, in this group, no
explanation was given for the position why
cultural components have a moderate influence
in Eastern Europe. According to experts, cultural
influence is most high in the models of Western
and Southern Europe.
Opposite results were obtained in the third group
of respondents from universities in Eastern
Europe (Figure 3).
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Figure 3. Assessment by 3d expert group of cultural components’ influence on models of socio-economic
development
(compiled by the author using the Neural Designer program)
Researchers from Eastern European Universities
stated that cultural aspects have the greatest
influence on the formation and development of
the socio-economic models in Eastern Europe, in
particular Poland, Romania and Hungary.
Experts at an average level assessed the influence
of cultural factors on the models of socio-
economic development of Western and Southern
Europe. The development of Germany and
France was especially critically assessed as «the
countries least exposed to the cultural context».
For the experts in the 3d group, the influence of
the mentality and historical context on the
formation of the model of socio-economic
development of the countries of Eastern Europe
is certainly decisive.
That is, even at the level of our results, we can
see the heterogeneity and polarization of expert
opinion regarding the influence of cultural
factors on regional models. Experts from
Western European countries believe that Eastern
European countries are the least affected, while
experts from Eastern European universities
believe that, on the contrary, Eastern European
models are most strongly influenced by the
historical context, mentality and values.
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Figure 4. The overall profile of the influence of cultural components, identified by experts from universities
in Western, Southern and Eastern Europe.
(compiled by the author using the Neural Designer program)
Figure 4 shows that the average score for each of
the models analyzed by the experts allows us to
speak about the relatively strong influence of
cultural factors on the models of socio-economic
development of the regions of the European
Union. However, the general trend is extremely
difficult to identify, since the opinions of experts
turned out to be opposite in relation to the
countries of Eastern Europe.
The results of our study regarding the influence
of mentality on the socio-economic models of the
EU countries are partially confirmed in the works
by such authors as V. Vogel and D. Will (2023),
I. Zvarych, O. Zvarych (2021), A. Serban et al.,
(2023), D. Soto-Oñate, G. Torrens (2022),
M. Thatcher (2019), T. Tsekeris,
S.K. Papaioannou (2021).
The results obtained on the dominant role of
cultural factors for the formation of the socio-
economic model of the countries of Eastern
Europe are confirmed in the studies by such
authors as O. Labianca (2020), E. Mamatzakis,
L. Neri, A. Russo (2023), T. Marzal (2023),
J. Premović, L. Arsić (2020), M. Proskurina
(2022), B. Salikhov, I. Salikhova (2022),
I. Schäfer, Y. Khoudja, D. Grunow (2022).
Indirectly, our results regarding the influence of
the historical context on the socio-economic
models of Western and Southern Europe are
confirmed in the works by such authors as
A. Garashchuk, Castillo, Rivera (2023), S. Groth
(2022), R. Higgott (2020), M Jagódka,
M. Snarska (2022), T. Juric (2023), M. Kruse,
C. Somcutean, J. Wedemeier (2023).
The influence of behavioral values on the
formation of the models in Southern Europe is
also considered in the works by such researchers
as L.H. Anders (2023), A. Bakry (2023a),
A. Bakry (2023b), R. Brandtjen (2023),
S. Ferran-Vila, G. Miotto, J. Rom-Rodríguez
(2022).
Nevertheless, despite the rather wide topic
coverage in the scientific literature, the problem
of cultural influence on the socio-economic
development of the regions in the European
Union requires further empirical research.
Conclusion
Based on the empirical results, we state the
following conclusions:
1. The method of expert assessments has
identified the following main cultural
aspects that can influence the models of
socio-economic development of various
regions of the European Union. Most experts
agree that the historical context and
mentality have the greatest influence on the
development of the countries of Western and
Southern Europe. At the same time,
regarding the cultural influence on the
development of Eastern Europe, the
opinions of experts were divided into
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completely opposite ones: Western
European and Southern European experts
argue that cultural factors played a moderate
role in shaping the socio-economic model of
Eastern Europe, while experts from Eastern
Europe are confident in the determining
influence of cultural and historical factors on
the socio-economic development in the
region.
2. The conducted empirical research confirms
the fact that the European Union is
heterogeneous not only in economic but also
in cultural terms, since even at the expert
level there is no consensus on the degree of
key cultural components impact on the
development of socio-economic models in
the EU regions. This result also confirms the
need for further qualitative research to
identify in more detail the influence of
cultural factors on the economy of the
European Union.
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