1. Culture Influence on Economic Development
Morosan Alexandra
Nicolaescu Andra

2. 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)

3. Research Question
Is the culture influencing the economic performance?

4. 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

5. 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

6. 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)

7. Data
World Value Survey
Global Education Database
World Bank

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