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North Meets Hofstede: Effects of Individualistic Culture on Property Rights

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  • Hoyong Jung

Abstract

This study investigates the influence of individualistic culture on property rights protection using a dataset of 86 countries. Employing the instrumental variable estimation method, the study uncovers the causal relationship between culture and institutional dynamics, considering variations in historical pathogen prevalence, linguistic pronoun usage, and genetic distance between countries. The findings reveal that individualism has a positive and statistically significant impact on property rights. The results are robust even after controlling for variables associated with both individualism and property rights and when considering alternative dependent and independent variables. This paper effectively links two significant societal elements, namely, the cultural aspect highlighted by Geert Hofstede and the establishment of economic institutions emphasized by Douglass North.

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  • Hoyong Jung, 2025. "North Meets Hofstede: Effects of Individualistic Culture on Property Rights," Kyklos, Wiley Blackwell, vol. 78(3), pages 1242-1258, August.
    • Handle: RePEc:bla:kyklos:v:78:y:2025:i:3:p:1242-1258
    DOI: 10.1111/kykl.12470
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