Transcript Culture Influence on Economic Development

Culture Influence on
Economic Development
Morosan Alexandra
Nicolaescu Andra
Theory
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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
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Is the culture influencing the economic
performance?
Hypothesis
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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
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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
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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
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World Value Survey
Global Education Database
World Bank
Discussion
A006 - dummy variable
 1 'Very important‘
 2 'Rather important‘
 3 'Not very important‘
 4 'Not at all important'
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