Influence Of Culture And Institutions On Economic Development In The British World

Abstract

The paper tests the hypothesis about the homeomorphism of the development of the countries of the British world, the former colonies of the British Empire and allies of Great Britain. With the colonies, Great Britain was united by common institutions of government. The colonies that were settled by British colonists have a common culture with the metropolis. Great Britain has different cultural affinities with the countries that were members of the Entente, EFTA, EU and British Commonwealth. The uniqueness of the study is due to the use of indicators of the stability (risks) to the commonly used macroeconomic indicators presented in the study by the growth rates of real GDP. To assess the proximity of economic development, we studied the coincidence of economic development policies in the terms of changes in growth and development risk in the studied economic cycle compared to the previous one. This technique allows you to assess the impact of culture and institutions on economic decisions. The study found that economic development policies are more homeomorphic to Britain in countries with a closer culture than in countries with shared institutions.