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Economic growth and cultural change

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  • Petrakis, Panagiotis
  • Kostis, Pantelis

Abstract

The paper contributes to the interpretation of annual growth rates based on the effect of the basic growth factors (capital, labour, human capital) and the cultural background as part of the “remaining factors”. It uses a series of variables to express these effects, which are analysed with a principal component analysis and a regression analysis, in the context of a Solow–Romer augmented growth framework. Cultural background variables are divided in two main groups: “Efficiency Orientation” and “Social Orientation” variables. We formulate the hypothesis that within the well-known growth framework “Efficiency Orientation” variables significantly affect economic growth, while “Social Orientation” influences are unpredicted in principle. The results confirm that cultural background positively affects annual growth rates. However, “Social Orientation” plays the main (positive) role. Furthermore, performing a sensitivity analysis on the cultural background, the conclusions confirm that cultural background has a strong interpretive role in annual growth rates. The deterioration of the “Social Orientation” cultural background negatively affects annual GDP growth. The paper points the crucial explanatory power of the “Social Orientation” cultural background for annual growth rates.

Suggested Citation

  • Petrakis, Panagiotis & Kostis, Pantelis, 2013. "Economic growth and cultural change," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 47(C), pages 147-157.
  • Handle: RePEc:eee:soceco:v:47:y:2013:i:c:p:147-157
    DOI: 10.1016/j.socec.2013.02.011
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    Cited by:

    1. Coccia, Mario, 2014. "Socio-cultural origins of the patterns of technological innovation: What is the likely interaction among religious culture, religious plurality and innovation? Towards a theory of socio-cultural drive," Technology in Society, Elsevier, vol. 36(C), pages 13-25.
    2. Petrakis, Panagiotis E. & Kostis, Pantelis C. & Valsamis, Dionysis G., 2015. "Innovation and competitiveness: Culture as a long-term strategic instrument during the European Great Recession," Journal of Business Research, Elsevier, vol. 68(7), pages 1436-1438.
    3. van Hoorn, André, 2018. "The use of identity primes to explain behavioral differences between groups: A methodological note," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 74(C), pages 146-150.
    4. Constantin Anghelache & Aurelian DIACONU & Andreea Ioana MARINESCU & Marius POPOVICI, 2016. "Comparative study of the evolution of the Gross Domestic Product indicator," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 64(12), pages 165-172, December.
    5. Pantelis C. Kostis, 2021. "Culture, innovation, and economic development," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-16, December.
    6. Bakas, Dimitrios & Kostis, Pantelis & Petrakis, Panagiotis, 2020. "Culture and labour productivity: An empirical investigation," Economic Modelling, Elsevier, vol. 85(C), pages 233-243.
    7. Constantin ANGHELACHE & Marian SFETCU & Mugurel POPOVICI & Zoica DINCA (NICOLA), 2016. "General aspects regarding the concept of economic growth," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 64(10), pages 67-70, October.
    8. Kostis, Pantelis C. & Kafka, Kyriaki I. & Petrakis, Panagiotis E., 2018. "Cultural change and innovation performance," Journal of Business Research, Elsevier, vol. 88(C), pages 306-313.
    9. Mohammad Nurunnabi, 2018. "Tax evasion and religiosity in the Muslim world: the significance of Shariah regulation," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(1), pages 371-394, January.
    10. Anna-Maria Kanzola & Panagiotis E. Petrakis, 2021. "Τhe Sustainability of Creativity," Sustainability, MDPI, vol. 13(5), pages 1-15, March.
    11. Petrakis, Panagiotis E. & Kostis, Pantelis C. & Kafka, Kyriaki I., 2016. "Secular stagnation, faltering innovation, and high uncertainty: New-era entrepreneurship appraisal using knowledge-based thinking," Journal of Business Research, Elsevier, vol. 69(5), pages 1909-1913.

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