Industrial Development and Social Values: an Econometric Approach

Abstract

The article delves into how original institutional economics elucidates processes of industrial development through the lenses of technological, institutional, and social factors. By employing econometric methods, we can further enhance theoretical research within the realm of original institutionalism by quantitatively analyzing social values. Fundamentally, social values form the basis for selecting behavioral patterns, institutions, and institutional frameworks to shape both individual and collective development trajectories. Research on social values yields crucial insights into how the public perceives specific contemporary challenges and issues. The Veblenian dichotomy aptly conceptualizes industrial and technological transformations alongside social values and institutions. Leveraging this dichotomy draws attention to the limitations of market mechanisms driven by contracts and profit motives, underscoring the need for a comprehensive analysis of modern industrial production in light of evolving social values. Through econometric modeling, specifically the use of the ordered logit model, we investigate the impact of industrial development levels and metrics assessing institutional progress in countries, as well as the significance of technology advancement in the future. While Russia exhibits relatively lower indices reflecting both personalized and institutional trust, the model validates a correlation between respondents' subjective evaluations of institutional quality in the country and their perceptions of future technology significance. Moreover, the model confirms a positive association between a country's industrial development level and respondents' views on the importance of technology progression in the future.