IDEAS home Printed from
   My bibliography  Save this article

Culture, freedom and economic growth: Do cultural values explain economic growth?


  • Johnson, James P.
  • Lenartowicz, Tomasz


Economic freedom, the ability of a society to conduct business in an unfettered manner without government intrusion, is a key determinant of economic s significant role in shaping a nation's business environment. This article combines data from a benchmark report, the Index of Economic Freedom, with tw a significant relationship between measures of culture, economic freedom, and economic growth. We discuss the implications of this relationship for business and for further academic research.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:worbus:v:33:y:1998:i:4:p:332-356

    Download full text from publisher

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Schuler, Randall S. & Jackson, Susan E. & Jackofsky, Ellen & Slocum, John Jr., 1996. "Managing human resources in Mexico: A cultural understanding," Business Horizons, Elsevier, vol. 39(3), pages 55-61.
    2. Zaki Eusufzai, 1998. "Do more open countries have a higher growth rate but more inequality?," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 26(1), pages 32-43, March.
    3. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
    4. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    5. Piero Morosini & Scott Shane & Harbir Singh, 1998. "National Cultural Distance and Cross-Border Acquisition Performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 137-158, March.
    6. Ryh-song Yeh & John J Lawrence, 1995. "Individualism and Confucian Dynamism: A Note on Hofstede's Cultural Root to Economic Growth," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(3), pages 655-669, September.
    7. Harry G Barkema & Freek Vermeulen, 1997. "What Differences in the Cultural Backgrounds of Partners Are Detrimental for International Joint Ventures?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(4), pages 845-864, December.
    8. Randall S Schuler & Nikolai Rogovsky, 1998. "Understanding Compensation Practice Variations Across Firms: The Impact of National Culture," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 159-177, March.
    9. Dollar, David, 1992. "Outward-Oriented Developing Economies Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976-1985," Economic Development and Cultural Change, University of Chicago Press, vol. 40(3), pages 523-544, April.
    10. Karen L Newman & Stanley D Nollen, 1996. "Culture and Congruence: The Fit Between Management Practices and national Culture," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 753-779, December.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Erkko Autio & Saurav Pathak & Karl Wennberg, 2013. "Consequences of cultural practices for entrepreneurial behaviors," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(4), pages 334-362, May.
    2. Nikolaev, Boris & Boudreaux, Christopher & Salahodjaev, Rauf, 2017. "Are individualistic societies less equal? Evidence from the parasite stress theory of values," Journal of Economic Behavior & Organization, Elsevier, vol. 138(C), pages 30-49.
    3. Krieger, Tim & Meierrieks, Daniel, 2016. "Political capitalism: The interaction between income inequality, economic freedom and democracy," European Journal of Political Economy, Elsevier, vol. 45(C), pages 115-132.
    4. Lilianne Pavón Cuellar Ph. D & María del Rocío Durán González MBA Student, 2015. "Cultural Traits And Business Sophistication," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(25), pages 49-56, NOVEMBER.
    5. repec:dgr:rugsom:05c01 is not listed on IDEAS
    6. Vas Taras & Piers Steel & Bradley L. Kirkman, 2016. "Does Country Equate with Culture? Beyond Geography in the Search for Cultural Boundaries," Management International Review, Springer, vol. 56(4), pages 455-487, August.
    7. repec:ksp:journ2:v:4:y:2017:i:3:p:343-344 is not listed on IDEAS
    8. Erumban, Abdul Azeez & de Jong, Simon B., 2006. "Cross-country differences in ICT adoption: A consequence of Culture?," Journal of World Business, Elsevier, vol. 41(4), pages 302-314, December.
    9. Forson, Joseph Ato & Janrattanagul, Jakkaphong & Carsamer, Emmanuel Carsamer, 2013. "Culture Matters: A Test of Rationality on Economic Growth," MPRA Paper 56825, University Library of Munich, Germany.
    10. Katarzyna Koleœnik, 2014. "The Role Of Culture In Accounting In The Light Of Hofstede’S, Gray’S And Schwartz’S Cultural Dimensions Theories – A Literature Review," "e-Finanse", University of Information Technology and Management, Institute of Financial Research and Analysis, vol. 9(3), pages 33-41, January.
    11. repec:bla:kyklos:v:70:y:2017:i:1:p:97-128 is not listed on IDEAS
    12. Benjamin Powell & Cortney Stephen Rodet, 2012. "Praise and Profits: Cultural and Institutional Determinants of Entrepreneurship," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 27(Spring 20), pages 19-42.
    13. Strese, Steffen & Adams, Daniel R. & Flatten, Tessa C. & Brettel, Malte, 2016. "Corporate culture and absorptive capacity: The moderating role of national culture dimensions on innovation management," International Business Review, Elsevier, vol. 25(5), pages 1149-1168.
    14. Jakob De Haan & Susanna Lundström & Jan-Egbert Sturm, 2006. "Market-oriented institutions and policies and economic growth: A critical survey," Journal of Economic Surveys, Wiley Blackwell, vol. 20(2), pages 157-191, April.
    15. Boris Nikolaev & Raufhon Salahodjaev, 2017. "Historical Prevalence of Infectious Diseases, Cultural Values, and the Origins of Economic Institutions," Kyklos, Wiley Blackwell, vol. 70(1), pages 97-128, February.
    16. Octavian-Dragomir JORA, 2016. "The Property Economics and the Benchmark Culture of Common Sense: On Markets for Ideas, Ideals, and Ideologies," Romanian Journal of Economics, Institute of National Economy, vol. 42(1(51)), pages 175-192, june.
    17. Dolansky, Eric & Alon, Ilan, 2008. "Religious freedom, religious diversity, and Japanese foreign direct investment," Research in International Business and Finance, Elsevier, vol. 22(1), pages 29-39, January.
    18. repec:spr:jknowl:v:8:y:2017:i:1:d:10.1007_s13132-015-0288-x is not listed on IDEAS
    19. Doucouliagos, Chris & Ulubasoglu, Mehmet Ali, 2006. "Economic freedom and economic growth: Does specification make a difference?," European Journal of Political Economy, Elsevier, vol. 22(1), pages 60-81, March.
    20. Steel, Piers & Taras, Vasyl, 2010. "Culture as a consequence: A multi-level multivariate meta-analysis of the effects of individual and country characteristics on work-related cultural values," Journal of International Management, Elsevier, vol. 16(3), pages 211-233, September.
    21. Erumban, Abdul Azeez & Jong, Simon B. de, 2005. "Cross-country differences in ICT adoption. A consequence of Culture?," Research Report 05C01, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    22. Erdem Ekrem & Tugcu Can Tansel, 2012. "New Evidence on the Relationship Between Economic Freedom and Growth: A Panel Cointegration Analysis for The Case of OECD," Global Economy Journal, De Gruyter, vol. 12(3), pages 1-18, September.
    23. Muethel, Miriam & Hoegl, Martin, 2010. "Cultural and societal influences on shared leadership in globally dispersed teams," Journal of International Management, Elsevier, vol. 16(3), pages 234-246, September.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:worbus:v:33:y:1998:i:4:p:332-356. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.