A Stochastic Frontier Analysis of Cultural Influence and Comprehensive Power of Countries | [Pakistan Journal of Life and Social Sciences • 2024]

Author(s):

1. Shahrin Saaid Shaharuddina: Faculty of Business and Economics, University of Malaya, Kuala Lumpur, Malaysia

2. Mozard Mohtar: Faculty of Business and Economics, University of Malaya, Kuala Lumpur, Malaysia

3. Azni Zarina Taha: Faculty of Business and Economics, University of Malaya, Kuala Lumpur, Malaysia

4. Hanafi Husin: Faculty of Business and Economics, University of Malaya, Kuala Lumpur, Malaysia

Abstract:

Cultural influence has been claimed to have a positive impact on the comprehensive power of countries and is an important element that needs to be considered when countries develop policies. In this study, the relationship between cultural influence and comprehensive power will be studied the fixed-effect regression model. Furthermore, the level of efficiency of cultural influence factors and the effect on comprehensive power will also be examined using the stochastic frontier model. The relationship between cultural influence and the comprehensive power of countries is tested based on a sample of sixteen (16) countries listed on the Lowy Institute Asia Power index which were selected based on available and obtainable data. The impact of cultural influence on comprehensive power is evaluated by examining the impact of three cultural influence sub-measures, namely, cultural projection, information flows, and people exchanges. Furthermore, the economic capability indicator which was adopted from the Lowy Institute Asia Power index will be used as a control variable in the study. The theoretical implications of the study suggest that cultural influence has a positive influence on comprehensive power. Nonetheless, economic capability is more influential in terms of its impact on comprehensive power as compared to cultural influence. Furthermore, the evidence implies that information flow is the most important cultural influence sub-measure. Results from the stochastic frontier analysis however indicate that superpowers are more culturally efficient as compared to middle and minor powers. The practical implications of the study provide reason and justification for countries to focus on policies relating to improving cultural influence, in particular, information flows to improve comprehensive power. Furthermore, the results from the study also provide reasons and motivations for the government and the corporate sector to work together to improve cultural influence.

Page(s): 751-775

DOI: 10.57239/PJLSS-2024-22.1.00053

Published: Journal: Pakistan Journal of Life and Social Sciences, Volume: 22, Issue: 1, Year: 2024

Keywords:

information flows , Cultural projection , Comprehensive power , Cultural influences , People exchanges

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