Culture Influence on Economic Development

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Presentation transcript:

Culture Influence on Economic Development Morosan Alexandra Nicolaescu Andra

Theory Economic development has predictable effects on culture and social life (eg. Inglehart and Baker 2000) Barro and McCleary (1993) provide evidence that religious beliefs are correlated with economic growth Luigi Guiso (2006)

Research Question Is the culture influencing the economic performance?

Hypothesis We expect to find that culture plays a role in the economic development, but we have to find out to what extent. In addition, we also believe that education and religion influence the economic performance of a country

The Model Culture and institutions: economic development in the regions of Europe Guido Tabellini (2005): Y = αo +βo X + δo C + e C = α1 +β1 X + λ1 Literacy + λ2 Institutions + v

Our Proposal Y= β0+β1*C+β2*E+A006, where: Y=GDP/capita C(culture)= sum_culture = trust + control + respect – obedience. E(education)= Total graduates in all programmes (country data panel) A006 = Religion important in life (dummy)

Data World Value Survey Global Education Database World Bank

Discussion A006 - dummy variable 1 'Very important‘ 1 2 'Rather important‘ ? 3 'Not very important‘ 0 4 'Not at all important'