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Cultural values and the global financial crisis: a missing link?

Author

Listed:
  • Adem Baltaci

    (Istanbul Medeniyet University)

  • Raif Cergibozan

    (Kirklareli University)

  • Ali Ari

    (Marmara University)

Abstract

We empirically investigate the role of cultural values on the occurrence of the global financial crisis. We use data based on Hofstede (Culture’s consequences: comparing values, behaviors, institutions and organizations across nations, 2001) cultural values indexes and employ two econometric approaches, the self-organizing maps and logit, in a panel set of 38 developed and developing countries. We find that culture has a statistically and economically significant effect on the occurrence of the global financial crisis of 2007–2009. The relationship between cultural factors and the crisis occurrence remains strong when we consider control variables representing different sectors of the economy.

Suggested Citation

  • Adem Baltaci & Raif Cergibozan & Ali Ari, 2022. "Cultural values and the global financial crisis: a missing link?," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 12(3), pages 507-529, September.
  • Handle: RePEc:spr:eurase:v:12:y:2022:i:3:d:10.1007_s40822-022-00208-6
    DOI: 10.1007/s40822-022-00208-6
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    References listed on IDEAS

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    More about this item

    Keywords

    Culture; Financial crisis; Self-organizing maps; Logit;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
    • G01 - Financial Economics - - General - - - Financial Crises
    • Z1 - Other Special Topics - - Cultural Economics

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