How Culture Impacts Economic Development: A Cross-country Comparison

Abstract

The significance of cultural factors in economic development is analyzed. Culture here refers to values, behaviors, and beliefs. Culture alone cannot explain development, but there are some factors that help us understand why some countries develop faster than others. The study makes use of the World Values Survey as a road map for analysis using cross-cultural comparisons. The analysis focuses on two key core values: trust and achievement. This is applied to two regions: East Asia (Japan and Korea) and Latin America (Mexico and Peru). The aim is to examine how aspects of culture help accelerate or impede development.