The purpose of this paper is to develop the theoretical linkage between culture and economic growth and empirically test the relationship by measuring culture and how it…
The purpose of this paper is to develop the theoretical linkage between culture and economic growth and empirically test the relationship by measuring culture and how it affects labor productivity.
This study uses a cross-section study of developing countries and regresses economic productivity growth on a set of control variables and cultural factors.
It is found that three cultural factors, economic attitudes, political attitudes, and attitudes towards the family, affect economic productivity growth.
Many economists ignore culture as a factor in economic growth, either because they discount the value of culture or because they have no simple way to quantify culture, resulting in the role of culture being under-researched. The study is the first to extensively examine the role of culture in productivity growth using large-scale data sources. The authors show that culture plays an important role in productivity gains across countries, contributing to the study of the effects of culture on economic development, and that culture can be empirically measured and linked to an activity that directly affects the economic growth – labor productivity.
Culture shapes economic action and, as such, impacts economic life. Although there is a growing recognition amongst economists that culture matters, there is nothing approaching a universal agreement on how to incorporate culture into economic analysis. We provide a brief summary of how economists have discussed culture and then argue that Austrian School Economics is particularly well suited to contribute to our understanding of the relationship between culture and economic action. Indeed, Austrian economics has an advantage (1) because of its links to Max Weber’s approach to social science and (2) because of its emphasis on economics as a science of meaning. A Weber-inspired Austrian economics that stresses meaning, we argue, brings a focus on culture to the fore of economic analysis and opens the door for a progressive research program within cultural economics. Austrian economists can and have made significant contributions to our understanding of the relationship between culture and economic action. Moreover, we argue, explorations of the connection between culture and economic action can be a fruitful field of study within Austrian economics.
How should economists incorporate culture into their economic analysis? What empirical approaches to identifying, measuring, and analyzing the relationship between culture…
How should economists incorporate culture into their economic analysis? What empirical approaches to identifying, measuring, and analyzing the relationship between culture and economic action are most appropriate for economists? In particular, what can experimental economists learn from the methods of economic anthropologists, sociologists, and historians who study culture? We argue that while both quantitative and qualitative approaches can reveal interesting relationships between culture and economic actions/outcomes, especially in experimental research designs, qualitative methods help economists better understand people’s economic choices and the economic outcomes that emerge from those choices. This is because qualitative studies conceptualize culture as a pattern of meaning, take the relevant cultural data to be people’s thoughts and feelings, treat the market as a cultural phenomenon, and allow for novel explanations.
The purpose of this paper is to explore how culture affects economic development on Native American reservations by examining how culture directs the attention of entrepreneurs and interacts with formal governance institutions.
This paper combines theoretical insights from economic sociology, market process economics and institutional economics as a basis to evaluate entrepreneurship and economic development on Native American reservations. Culture, as a web of social meanings, shapes what opportunities entrepreneurs are alert to, influences how they perceive transaction costs and determines whether institutions achieve their intended ends. Historical and contemporary case studies are used to build analytical narratives to corroborate the theoretical approach.
The federal government has imposed many formal institutions on reservations, which have disrupted traditional governance and property rights structures. If formal institutions do not comport with the underlying culture, those institutions do not facilitate positive entrepreneurship and economic growth. Despite the barriers, entrepreneurs across several reservations have leveraged their cultural and social ties to create robust informal economies. In some cases, imposed institutions have fostered rent-seeking and have given rise to a culture of rent-seeking.
This paper looks at Native American entrepreneurship and institutions in the broadest sense. However, there is a large amount of diversity within the cultural and governance structures of Native American communities. Future research could examine specific tribes or reservations in more detail.
This paper elucidates cultural and institutional barriers to productive entrepreneurship on Native American lands. Policymakers must understand these root causes if they are to facilitate economic growth.
This paper’s combination of theoretical perspectives helps explain the widespread economic development issues on Native American lands.
To overcome the errors of the exogenous growth theories of the past, the new growth theories, currently in vogue, attempt to incorporate technological change as endogenous…
To overcome the errors of the exogenous growth theories of the past, the new growth theories, currently in vogue, attempt to incorporate technological change as endogenous to the growth process. While making a commendable effort to see into that black box of technological change, these so‐called new growth theories are also subject to question and critique on a variety of grounds. One of these is that the new growth theories are not really that new. Another area of concern relates to their empirical relevancy. This is especially evident in assessing the practical use of the new growth theories in terms of problem identification and policy resolution. Other problem areas relate to issues of conceptual clarity and underlying assumptions. By assuming the process of economic growth to be synonymous with that of economic development the result is to avoid the prerequisite structural transformation inherent in the dynamics of culture evolution. Culture evolution in turn is predicated upon technological advance conceptualized as both material and social technology. It is argued in this paper that an explanation as to why technology is endogenous to the processes of growth and economic development is best served vis‐à‐vis an analysis of the dynamics of culture evolution.
Demonstrates the relevance of a stages methodology as a basis forunderstanding and analysing the evolutionary metamorphosis leading tothe current Russian malaise…
Demonstrates the relevance of a stages methodology as a basis for understanding and analysing the evolutionary metamorphosis leading to the current Russian malaise. Addresses the advantages and disadvantages of the methodology, such as the unilinear fallacy, and analyses economic stagnation and decline in the context of the dynamics of culture evolution in the stage of modern economic growth. Given the Kuznetsian emphasis on a science‐fed technology, how then to explain the lack of Russian permeability to that technological flow? Many variables, such as excessive military spending, nationalism, rigid centralization, ideology, and so on, enter into such an analytical purview. It appears that neither tsarist nor Soviet Russia was able to create a culture adequately permeable to the dynamics of an ongoing science‐fed technological flow. The basic problem for Russia to overcome today is one of a cultural lag. A greater democratization of social and economic organization, concomitant with the needs of a modern industrial society, appears in order.
Essays a conceptural clarification and theory of the process of economicevolution. Using the Veblenian matrix, conceptualizes the economicprocess in the framework of…
Essays a conceptural clarification and theory of the process of economic evolution. Using the Veblenian matrix, conceptualizes the economic process in the framework of culture and its evolution. Economic evolution, as a gestalt, comprises the processes of both economic growth (quantitative statics) and development (qualitative dynamics). The dynamics of culture evolution is founded on the advance of technology which constitutes the “core of culture”. The essence of the process of culture evolution is contained in the dichotomy of useful knowledge. The advance of useful knowledge appears in its application as technology and in its store as culture. The process of economic evolution increases the capacity of culture and thereby enables humankind to take bigger and bigger bites of the infinity of knowledge. Culture evolution, fed by the dynamics of the economic process, offers the potential for an enhanced “consciousness of the cosmos” and as such a conception of human progress.
This chapter's objective is to analyze, with a long-term perspective, the formation of an entrepreneurial culture in Mexico's Midwest, specifically in the state of Jalisco, in terms of the geographical environment, the culture in general, and the local economic institutions that, when viewed interconnectedly, will globally impact the practices, representations, and imaginaries of persons who at a given time have made the decision to undertake profitable economic activities – individual and collective entrepreneurs, in other words. To this end, we have divided the text into two sections. In the first, we conceptually review what we understand as entrepreneurial culture; in principle, we deconstruct its terms and then conjugate them from a social science perspective. We also emphasize the importance of studying the milieu as a scenario of action with different arenas, where a variety of agents have been involved. In the second part, without sidelining conceptual analysis, we present concrete empirical evidence of the role played by culture and local economic institutions that shape entrepreneurial culture in Midwestern Mexico over time, specifically in Jalisco. The text ends with some final considerations.