Menu Expand

Cite JOURNAL ARTICLE

Style

de Jong, E. Economics and Culture: Is the Context Considered?. Journal of Contextual Economics – Schmollers Jahrbuch, 141(1–2), 3-24. https://doi.org/10.3790/schm.141.1-2.3
de Jong, Eelke "Economics and Culture: Is the Context Considered?" Journal of Contextual Economics – Schmollers Jahrbuch 141.1–2, 2021, 3-24. https://doi.org/10.3790/schm.141.1-2.3
de Jong, Eelke (2021): Economics and Culture: Is the Context Considered?, in: Journal of Contextual Economics – Schmollers Jahrbuch, vol. 141, iss. 1–2, 3-24, [online] https://doi.org/10.3790/schm.141.1-2.3

Format

Economics and Culture: Is the Context Considered?

de Jong, Eelke

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 141 (2021), Iss. 1–2 : pp. 3–24

Additional Information

Article Details

Author Details

Eelke de Jong, Institute for Mangement Research, Department of Economics, Radboud University Nijmegen, P.O. Box 9108, 6500 HK Nijmegen, Netherlands.

References

  1. Acemoglu, D., S. H. Johnson, and J. A. Robinson. 2001. “The Colonial Origins of Comparative Development: An Empirical Investigation.” American Economic Review 91 (5): 1369 – 401.  Google Scholar
  2. Acemoglu, D. and J. A. Robinson. 2012. Why Nations Fail: The Origins of Power, Prosperity and Poverty. New York: Crown Publishers.  Google Scholar
  3. Alesina, A. and P. Giuliano. 2015. “Culture and Institutions.” Journal of Economic Literature 53 (4): 898 – 944.  Google Scholar
  4. Algan, Y. and P. Cahuc. 2010. “Inherited Trust and Growth.” American Economic Review 100 (5): 2060 – 92.  Google Scholar
  5. Anderson, C. W., M. Fedenia, M. Hirschey, and H. Skiba. 2011. “Cultural Influences on Home Bias and International Diversification by Institutional Investors.” Journal of Banking & Finance 35 (4): 916 – 34.  Google Scholar
  6. Bernstein, A. 2006. “Culture and Development: Questions from South Africa.” In Developing Cultures: Case Studies, edited by L. E. Harrison and P. L. Berger, 23 – 41. New York: Routledge.  Google Scholar
  7. Beugelsdijk, S. 2006. “A Note on the Theory and Measurement of Trust in Explaining Differences in Economic Growth.” Cambridge Journal of Economics 30 (3): 371 – 87.  Google Scholar
  8. Beugelsdijk, S. and B. Frijns. 2010. “A Cultural Explanation of the Foreign Bias in International Asset Allocation.” Journal of Banking & Finance 34 (9), 2121 – 31.  Google Scholar
  9. Beugelsdijk, S. and R. Maseland. 2011. Culture in Economics: History, Methodological Reflections and Contemporary Applications. Cambridge: Cambridge University Press.  Google Scholar
  10. Beugelsdijk, S., R. Maseland, and A. van Hoorn. 2015. “Are Scores on Hofstede’s Dimensions of National Culture Stable over Time? A Cohort Analysis.” Global Strategy Journal 5 (3): 223 – 40.  Google Scholar
  11. Beugelsdijk, S. and T. van Schaik. 2005. “Social Capital and Growth in European Regions: An Empirical Test.” European Journal of Political Economy 21 (2): 301 – 24.  Google Scholar
  12. Bisin, A. and T. Verdier. 2011. “The Economics of Cultural Transmission and Socialization.” In Handbook of Social Economics, Vol. 1 A, edited by J. Benhabib, A. Bisin, and M. O. Jackson, 339 – 416. Amsterdam: North Holland.  Google Scholar
  13. Blanchard, O. J., K. A. Froot, and J. D. Sachs (eds.). 1994. The Transition in Eastern Europe. 2 vols. Chicago: University of Chicago Press.  Google Scholar
  14. Bohn, F. and E. de Jong. 2011. “The 2010 Euro Crisis Stand-off between France and Germany: Leadership Styles and Political Culture.” International Economics and Economic Policy 8 (1): 7 – 14.  Google Scholar
  15. Bowles, S. 1998. “Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions.” Journal of Economic Literature 36 (1): 75 – 111.  Google Scholar
  16. Brunnermeier, M. K., H. James, and J.-P. Landau. 2016. The Euro and the Battle of Ideas. Princeton: Princeton University Press.  Google Scholar
  17. Chhokar, J. S., F. C. Brodbeck, and R. J. House (eds.). 2007. Culture and Leadership Across the World: The GLOBE Book of In-Depth Studies of 25 Societies. New York: Lawrence Erlbaum Associates.  Google Scholar
  18. Costa-Font, J., P. Giuliano, and B. Ozcan. 2018. “The Cultural Origin of Saving Behavior.” PLoS ONE 13 (9): 1 – 10.  Google Scholar
  19. Coutinho, S. W. 2018. Breaking Rank: How to Lead Change when Yesterday’s Stories Limit Today’s Choices.  Google Scholar
  20. De Jong, E. 2002. “Why are Price Stability and Statutory Independence of Central Banks Negatively Correlated? The Role of Culture.” European Journal of Political Economy 18 (4): 675 – 94.  Google Scholar
  21. De Jong, E. 2009. Culture and Economics: On Values, Economics and International Business. New York: Routledge.  Google Scholar
  22. De Jong, E. 2020. “Market Economies: Uncertainty Accepting Societies.” Unpublished Manuscript.  Google Scholar
  23. De Jong, E. (ed.). Forthcoming. Economic Ideas, Policy and National Culture. London: Routledge.  Google Scholar
  24. De Jong, E., R. Smeets, and J. Smits. 2006. “Culture and Openness.” Social Indicators Research 78 (1): 111 – 36.  Google Scholar
  25. Denzau, A. T. and D. C. North. 1994. “Shared Mental Model: Ideologies and Institutions.” Kyklos 47 (1): 3 – 31.  Google Scholar
  26. Falk, A., A. Becker, T. J. Dohmen, B. Enke, D. Huffman, and U. Sunde. 2018. “Global Evidence on Economic Preferences.” Quarterly Journal of Economics 133 (4): 1645 – 92.  Google Scholar
  27. Falk, A., A. Becker, T. J. Dohmen, D. Huffman, and U. Sunde. 2016. “The Preference Survey Module: A Validated Instrument for Measuring Risk, Time, and Social Preferences.” IZA Discussion Paper No. 9674, Deutsche Post Stiftung, Institute of Labor Economics.  Google Scholar
  28. Fernández, R. and A. Fogli. 2009. “Culture: An Empirical Investigation of Beliefs, Work and Fertility.” American Economic Journal: Macroeconomics 1 (1): 146 – 77.  Google Scholar
  29. Furubotn, E. G. and R. Richter. (1997) 2005. Institutions and Economic Theory: The Contribution of the New Institutional Economics. Ann Arbor: University of Michigan Press.  Google Scholar
  30. Galor, O. and Ö. Özak. 2016. “The Agricultural Origins of Time Preference.” American Economic Review 106 (10): 3064 – 103.  Google Scholar
  31. Giavazzi, F., I. Petkov, and F. Schiantarelli. 2019. “Culture: Persistence and Evolution.” Journal of Economic Growth 24 (2): 117 – 54.  Google Scholar
  32. Goldschmidt, N., E. Grimmer-Solem, and J. Zweynert. 2016. “On the Purpose and Aims of the Journal of Contextual Economics.” Schmollers Jahrbuch 136 (1): 1 – 14.  Google Scholar
  33. Goodwin, N. 2010. “A New Economics for the 21st Century.” MPRA Paper no. 27907. Ludwig-Maximilians-University of Munich, Munich Personal RePEc Archive.  Google Scholar
  34. Graafland, J. J. and E. de Jong. 2020. “Which Countries Benefit most from Economic Freedom? On the Moderating Role of Culture.” Unpublished Manuscript.  Google Scholar
  35. Grosjean, P. 2014. “A History of Violence: The Culture of Honor and Homicide in the US South.” Journal of the European Economic Association 12 (5): 1286 – 316.  Google Scholar
  36. Guiso, L., P. Sapienza, and L. Zingales. 2009. “Cultural Biases in Economic Exchange?” Quarterly Journal of Economics 124 (3): 1095 – 131.  Google Scholar
  37. Hagenaars, J., L. Halman, and G. Moors. 2003. “Exploring Europe’s Basic Values Map.” In The Cultural Diversity of European Union: Findings, Explanations and Reflections from the European Values Survey, edited by W. Arts, J. Hagenaars, and L. Halman, 23 – 58. Leiden: Brill.  Google Scholar
  38. Hall, P. A. and D. Soskice. 2001. Varieties of Capitalism: The Institutional Foundations of Comparative Advantage. Oxford: Oxford University Press.  Google Scholar
  39. Hampden-Turner, C. and F. Trompenaars. 2000. Building Cross-Cultural Competence: How to Create Wealth from Conflicting Values. New Haven, CT: Yale University Press.  Google Scholar
  40. Henrich, J. , R. Boyd, S. Bowles, C. Camerer, E. Fehr, H. Gintis, and R. McElreath. 2001. “In Search of Homo Economicus: Behavioral Experiments in 15 Small-Scale Societies.” American Economic Review 91 (2): 73 – 8.  Google Scholar
  41. Hofstede, G. 1980. Culture’s Consequences: International Differences in Work-Related Values. Beverly Hills, CA: SAGE Publications.  Google Scholar
  42. Hofstede, G. 2001. Culture’s Consequences: Comparing Values, Behaviors, Institutions and Organizations Across Nations. Thousand Oaks, CA: SAGE Publications.  Google Scholar
  43. Hofstede, G., G. J. Hofstede, and M. Minkov. (1991) 2005. Cultures and Organizations: Software of the Mind. New York: McGraw-Hill.  Google Scholar
  44. House, R. J., P. J. Hanges, M. Javidan, P. W. Dorfman, and V. Gupta. (eds.). 2004. Culture, Leadership and Organizations: The Globe Study of 62 Societies. London: Sage Publications.  Google Scholar
  45. Inglehart, R. 1997. Modernization and Postmodernization: Cultural, Economic, and Political Change in 43 Societies. Princeton: Princeton University Press.  Google Scholar
  46. Kluckhohn, C. 1962. “Universal Categories of Culture.” In Anthropology Today: Selections, edited by S. Tax, 304 – 20. Chicago: University of Chicago Press.  Google Scholar
  47. Knack, S. and P. Keefer. 1997. “Does Social Capital Have an Economic Payoff? A Cross-Country Investigation.” Quarterly Journal of Economics 112 (4): 1251 – 88.  Google Scholar
  48. Kogut, B. and H. Singh. 1988. “The Effect of National Culture on the Choice of the Entry Mode.” Journal of International Business Studies 19 (3): 411 – 32.  Google Scholar
  49. Kuran, T. 1995. Private Truths, Public Lies: The Social Consequence of Preference Falsification. Cambridge: Harvard University Press.  Google Scholar
  50. Kwok, C. Y. and S. Tadesse. 2006. “National Culture and Financial Systems.” Journal of International Business Studies 37 (2): 227 – 47.  Google Scholar
  51. Landes, D. S. 1998. The Wealth and Poverty of Nations. London: Abacus.  Google Scholar
  52. Maseland, R., D. Dow, and P. Steel. 2018. “The Kogut and Singh National Cultural Distance Index: Time to Start Using It as a Springboard Rather Than a Crutch.” Journal of International Business Studies 49 (9): 1154 – 66.  Google Scholar
  53. Mokyr, J. 2017. A Culture of Growth: The Origins of the Modern Economy. Princeton: Princeton University Press.  Google Scholar
  54. Murrell, P. 1995. “The Transition According to Cambridge, Mass.” Journal of Economic Literature 33 (1): 164 – 78.  Google Scholar
  55. North, D. C. 1990. Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press.  Google Scholar
  56. North, D. C., J. J. Wallis, S. B. Webb, and B. R. Weingast (eds.). 2013. In the Shadow of Violence: Politics, Economics, and the Problems of Development. Cambridge: Cambridge University Press.  Google Scholar
  57. North, D. C., J. J. Wallis, and B. R. Weingast. 2009. Violence and Social Orders: A Conceptual Framework for Interpreting Recorded Human History. Cambridge: Cambridge University Press.  Google Scholar
  58. Nunn, N. 2020. “The Historical Roots of Economic Development.” Science 367 (6485): 1441.  Google Scholar
  59. Obstfeld, M. and K. Rogoff. 2000. “Six Major Puzzles in International Macroeconomics: Is There a Common Cause?” NBER Working Papers No. 7777. National Bureau of Economic Research.  Google Scholar
  60. Pejovich, S. 2003. “Understanding the Transaction Costs of Transition: It’s the Culture, Stupid.” Review of Austrian Economics 16 (4): 347 – 61.  Google Scholar
  61. Piketty, T. 2020. Capital and Ideology. Cambridge, MA: Harvard University Press.  Google Scholar
  62. Pitard, J. 2017. “A Journey to the Centre of Self: Positioning the Researcher in Autoethnography.” Forum: Qualitative Social Research 18 (3): 1 – 20.  Google Scholar
  63. Richerson, P. J. and R. Boyd. 2005. Not By Genes Alone: How Culture Transformed Human Evolution. Chicago: University of Chicago Press.  Google Scholar
  64. Robbins, L. 1932. An Essay on the Nature and Significance of Economic Science. London: Macmillan.  Google Scholar
  65. Schmoller, G. 1874. “Über einige Grundfragen des Rechts und der Volkswirtschaft. Ein Offenes Sendschreiben an Herrn Professor Dr. Heinrich von Treitschke.” Jahrbücher für Nationalökonomie und Statistik 23 (5/6): 225 – 349.  Google Scholar
  66. Schwartz, S. H. 1992. “Universals in the Content and Structure of Values: Theoretical Advances and Empirical Tests in 20 Countries.” Advances in Experimental Social Psychology 25 (1): 1 – 65.  Google Scholar
  67. Schwartz, S. H. 1994. “Beyond Individualism/Collectivism: New Cultural Dimensions of Values.” In Individualism and Collectivism: Theory, Method, and Applications, edited by U. Kim, H. Ç. Triandis, C. Kagitçibasi, S.-C. Choi, and G. Yoon, 85 – 119. Thousand Oaks, CA: SAGE Publications.  Google Scholar
  68. Shenkar, O. 2001. “Cultural Distance Revisited: Towards a More Rigorous Conceptualization and Measurement of Cultural Differences.” Journal of International Business Studies 32 (3): 519 – 35.  Google Scholar
  69. Spolaore, E. and R. Wacziarg. 2013. “How Deep are the Roots of Economic Development?” Journal of Economic Literature 51 (2): 325 – 69.  Google Scholar
  70. Spranz R., A. Lenger, and N. Goldschmidt. 2012. “The Relation between Institutional and Cultural Factors in Economic Development: The Case of Indonesia.” Journal of Institutional Economics 8 (4): 459 – 88.  Google Scholar
  71. Tabellini, G. 2010. “Culture and Institutions: Economic Development in the Regions of Europe.” Journal of the European Economic Association 8 (4): 677 – 716.  Google Scholar
  72. Van Esch, F. and E. de Jong. 2019. “National Culture Trumps EU Socialization: The European Central Bankers’ Views of the Euro Crisis.” Journal of European Public Policy 26 (2): 169 – 87.  Google Scholar
  73. Wang, M., M. O. Rieger, and T. Hens. 2016. “How Time Preferences Differ: Evidence from 53 Countries.” Journal of Economic Psychology 52 (1): 115 – 35.  Google Scholar
  74. Wang, M., M. O. Rieger, and T. Hens. 2017. “The Impact of Culture on Loss Aversion.” Journal of Behavioral Decision Making 30 (2): 270 – 81.  Google Scholar
  75. Wang, Y., Z. Yang, and M. Yasar. 2020. “A Multilevel Investigation into the Effect of Cultural Distance on Bilateral Trade: The Roles of Product Type and Uncertainty Avoidance.” Canadian Journal of Administrative Sciences 37 (4): 495 – 512.  Google Scholar
  76. Webb, S. B. 2015. “Becoming an Open Democratic Capitalist Society: A Two-century Historical Perspective on German’s Evolving Political System.” Constitutional Political Economy 26 (1): 19 – 37.  Google Scholar
  77. Weintraub, R. E. 2002. How Economics Became a Mathematical Science. Durham, NC: Duke University Press.  Google Scholar
  78. Williamson, O. E. 2000. “The New Institutional Economics: Taking Stock, Looking Ahead.” Journal of Economic Literature 38 (3): 595 – 613.  Google Scholar
  79. World Bank. 1993. The East-Asian Miracle. Washington, D.C. and Oxford: The World Bank and Oxford University Press.  Google Scholar
  80. World Bank. 2015. Mind, Society and Behavior. Washington, D.C. and Oxford: The World Bank and Oxford University Press.  Google Scholar
  81. Yu, S., S. Beugelsdijk, and J. de Haan. 2015. “Trade, Trust and the Rule of Law.” European Journal of Political Economy 37 (1): 102 – 15.  Google Scholar
  82. Zweynert, J. and N. Goldschmidt. 2006. “The Two Transitions in Central and Eastern Europe as Processes of Institutional Transplantation.” Journal of Economic Issues 40 (4): 895 – 18.  Google Scholar

Abstract

This paper reviews the recent literature on economics and culture to investigate whether and how it considers the context. It first describes how culture reentered the economic literature from 1990s onwards. It then presents empirical studies on the relation between culture, institutions and economic performance. Thereafter, the role of culture for economic change as well as the historical roots of cultural differences are investigated. Finally, the question whether these approaches are contextual is answered, and recommendations are made for enhancing a cultural / contextual view on economics when appropriate.