Cultural determinants of economic growth: Theory and evidence
Shortcomings of neoclassical growth theory and growth accounting are viewed as a challenge for cultural economics. Recently, new growth theory has introduced several growth determinants and has closed the gap between theoretical and empirical research. Whether this development leaves space for cultural determinants in explaining economic growth is in the center of this paper. The theoretical analysis shows how an endogenous growth model can be used to explain the impact on economic growth of cultural determinants. The empirical part uses indices from cross-cultural studies to extend recent cross-country growth regressions. Among other Hofstede’s uncertainty avoidance index is shown to be significantly correlated with economic growth. Copyright Kluwer Academic Publishers 1996
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Volume (Year): 20 (1996)
Issue (Month): 4 (December)
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