The linkage between sanctions and infrastructure: How national culture matters

Abstract

ABSTRACTThis study examines how national culture matters for infrastructure, especially in a severe and uncertain environment arising from the imposition of an economic sanction. To do so, I use the largest and most recent cross-country panel dataset consisting of worldwide countries during the 2013–2019 period and the dynamic difference-in-differences technique to obtain the research aims. Overall, I uncover evidence that the development of infrastructure in the domestic countries is negatively impacted by economic sanctions. More importantly, I highlight the fact that countries with masculinity culture do better in terms of electricity and telecommunication infrastructure in a business environment where sanctions are applied. In contrast, the individualism culture may worsen the negative impact of sanction on the development of transportation infrastructure. In brief, by evaluating the impact of sanctions on infrastructure development from a cultural perspective, this study may make a variety of contributions to the economic literature.