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Individualism and Confucian Dynamism: A Note on Hofstede's Cultural Root to Economic Growth

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  • Ryh-song Yeh

    (The Chinese University)

  • John J Lawrence

    (University of Idaho)

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    Abstract

    Hofstede and his associates have presented statistical evidence purporting to identify a link between national culture and economic growth. This note describes two problems with this line of research. First, two of the dimensions of culture used in this research, individualism and Confucian dynamism, are treated as if they are independent when in fact they appear to be highly interrelated. And second, culture is not a sufficient condition to explain economic growth and is related to other important factors that play a role in determining economic growth. The consequences of these problems on interpretation of the research findings are discussed and recommendations for future research directions are proposed.© 1995 JIBS. Journal of International Business Studies (1995) 26, 655–669

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    Article provided by Palgrave Macmillan in its journal Journal of International Business Studies.

    Volume (Year): 26 (1995)
    Issue (Month): 3 (September)
    Pages: 655-669

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    Handle: RePEc:pal:jintbs:v:26:y:1995:i:3:p:655-669

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    Cited by:
    1. Archambault, Jeffrey J. & Archambault, Marie E., 1999. "A cross-national test of determinants of inflation accounting practices," The International Journal of Accounting, Elsevier, vol. 34(2), pages 189-207, 06.
    2. Johnson, James P. & Lenartowicz, Tomasz, 1998. "Culture, freedom and economic growth: Do cultural values explain economic growth?," Journal of World Business, Elsevier, vol. 33(4), pages 332-356, January.
    3. Schultz, Joseph Jr. & Lopez, Thomas J., 2001. "The impact of national influence on accounting estimates: Implications for international accounting standard-setters," The International Journal of Accounting, Elsevier, vol. 36(3), pages 271-290, 09.
    4. Archambault, Jeffrey J. & Archambault, Marie E., 2003. "A multinational test of determinants of corporate disclosure," The International Journal of Accounting, Elsevier, vol. 38(2), pages 173-194.
    5. Marcus Noland, 2003. "Religion, Culture, and Economic Performance," Working Paper Series WP03-8, Peterson Institute for International Economics.
    6. Peng, Mike W. & Lu, Yuan & Shenkar, Oded & Wang, Denis Y. L., 2001. "Treasures in the China house: a review of management and organizational research on Greater China," Journal of Business Research, Elsevier, vol. 52(2), pages 95-110, May.
    7. David Ackerman & Jing Hu & Liyuan Wei, 2009. "Confucius, Cars, and Big Government: Impact of Government Involvement in Business on Consumer Perceptions Under Confucianism," Journal of Business Ethics, Springer, vol. 88(3), pages 473-482, October.
    8. Annett Reimer, 2005. "Die Bedeutung der Kulturtheorie von Geert Hofstede für das internationale Management," Wismar Discussion Papers 20/2005, Hochschule Wismar, Wismar Business School.
    9. Fey, Carl F., 2005. "Opening the black box of motivation: A cross-cultural comparison of Sweden and Russia," International Business Review, Elsevier, vol. 14(3), pages 345-367, June.

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