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The Effect of Economic Growth on a Society’s Informal Institutions: A Mixed Level Model Analysis

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  • Dutta, Dilip
  • Fearnley, Nicholas

Abstract

This paper tests the Grand Transition (GT) view that economic growth drives institutional change. The paper identifies three representative informal institutions: post-materialist values, religiosity, and attitudes towards the family. Three Mixed Level Models are estimated to analyse how each informal institutions is shaped by economic growth. The results show that as a nation becomes more economically developed, citizens experience higher levels of post-materialist values, a decline in their religiosity and place less importance on the family.

Suggested Citation

  • Dutta, Dilip & Fearnley, Nicholas, 2016. "The Effect of Economic Growth on a Society’s Informal Institutions: A Mixed Level Model Analysis," Working Papers 2016-22, University of Sydney, School of Economics.
    • Handle: RePEc:syd:wpaper:2016-22
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    References listed on IDEAS

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