Cultural and Economic Growth: Does the Specific Matrix of Cultural Values Have Dissimilar Impact on Rich and Poor

This study signifies an endeavor at measuring the influence of certain cultural features on economic growths. The notion of the role of cultural factors in economic development and growth has come across considerable confrontation. The reason for this opposition is related with understanding of cultural tenets as being broadly subtle and lasting features of societies. While the average economic opinions are obviously enough for explaining global differences in savings and growth rates, supplementary empirical research can help in ascertaining such cultural factors as may be relevant to analyze economic development. Cultural factors are incorporated into baseline endogenous economic growth model applied by using the relevant data from the World Values Survey/European Value Survey (1981-2011) on fifteen cultural variables combined with standard economic variables in developed and developing regions of world economy. The results have shown that cultural attitudes towards trust have a positive and significant impact on economic growth in both regions. Further, the Hofstede component of culture, Schwartz cultural dimensions and Trompenaars egalitarian commitment and utilitarian involvement are found to be significant determinants of regional economic performance in developed countries. Yet, the same cultural variables do not have a significant impact in developing world. The cultural attitudes about religious and ethnic diversity are found to be negatively relate