Influence of Culture on Macroeconomic Stability
| Thesis title in Czech: | Vliv kulturních rozdílů na makroekonomickou stabilitu |
|---|---|
| Thesis title in English: | Influence of Culture on Macroeconomic Stability |
| Key words: | makroekonomická stabilita, ekonomie kultury, kulturní charakteristiky, Hofstede, WVS, GLS |
| English key words: | Macroeconomic stability, Cultural economics, Cultural characteristics, Hofstede, WVS, GLS |
| Academic year of topic announcement: | 2012/2013 |
| Thesis type: | diploma thesis |
| Thesis language: | angličtina |
| Department: | Institute of Economic Studies (23-IES) |
| Supervisor: | PhDr. Jaromír Baxa, Ph.D. |
| Author: | hidden - assigned by the advisor |
| Date of registration: | 23.01.2013 |
| Date of assignment: | 23.01.2013 |
| Date and time of defence: | 11.02.2015 00:00 |
| Venue of defence: | IES |
| Date of electronic submission: | 05.01.2015 |
| Date of proceeded defence: | 11.02.2015 |
| Opponents: | doc. PhDr. Martin Gregor, Ph.D. |
| URKUND check: | |
| References |
| 1. Hofstede, G., G. J. Hofstede, & M. Minkov (2010): Cultures and Orga-nizations: Software of the Mind. New York, USA: McGraw-Hill, revised andexpanded 3rd edition edition.
2. Hofstede, G. H. (2001): Culture's Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations. USA: Sage Publications,Inc., 2nd edition. 3. Handbook of Economic Growth (2005), editors: Philippe Aghion,Steven Durlauf, Elsevier 4. Herciu, M., 2006."The influence of culture on the economic freedom and the international business," MPRA Paper 1686, University Library of Munich, Germany. 5. Ramrattan, L. & Zimmerman, A. & Szenberg, M., 2001. "Coping with cultural differences in international market research," Journal of Financial Transformation, Capco Institute, vol. 3, pages 109-116. 6. Levinson, D. (1977): „What have we learned from cross-cultural surveys?" American Behavioral Scientist 20:5: pp. 757-792. 7. Solow, R. M. (1956): „A Contribution to the Theory of Economic Growth." The Quarterly Journal of Economics 70: pp. 65-94 |
| Preliminary scope of work |
| My thesis will be focused on determining the influence of individual country's cultural characteristics on its macroeconomic stability. It will be partly based on the findings from my previous research (Bachelors Thesis). Based on the literature and on my previous findings the cultural differences between nations affect productivity.
In this Master Thesis I would like to test the influence of the suitable cultural characteristics (Hofstede’s Dimension and World Value Survey) on macroeconomic stability. The macroeconomic stability will be represented by macroeconomic (in)stab\-ility index which is composed of most important macroeconomic stability factors – inflation rate, public deficit (as ratio) and others. The composition of macroeconomic instability index is described in literature (Ismihan (2003), The Role of Politics and Instability on Public Spending Dynamics and Macroeconomic Performance: Theory and Evidence from Turkey, Ph.D. Thesis, METU, Ankara, December 2003). The basic model will be tested using linear regression analysis. Also I would like to run secondary regressions – to check the robustness of the variables' effect. Within the literature the correcting for the endogeneity bias is discussed. I will cover the endogeneity issue either through instrumental variables (as used e.g. in the paper of Sascha Buetzer, Christina Jordan and Livio Stracca, Euro Area Imbalances: A Matter of Culture?), or through employing panel vector autoregression techniques (e.g. in Boubtane, Ekrame and Coulibaly, Dramane and Rault, Christophe, Immigration, Growth, and Unemployment: Panel VAR Evidence from OECD Countries. LABOUR, Vol. 27, Issue 4, pp. 399-420, 2013.), or through other suitable technique. I will work with panel data. I will try to include more than 50 countries for the period longer than 20 years. I will use the economic data from the World Bank database, the cultural data from Hofstede’s research and World Value Survey. The findings of the Thesis could outline the possible answers why some countries are experiencing worse macroeconomic instability when started at the same position as other. Hypothesis (H1) Macroeconomic stability is influenced by cultural characteristics (H2) Long-term orientation has positive impact on macroeconomic stability. (H3) Trust has positive impact on macroeconomic stability. Methodology The model will be tested using GLS technique. If it turns out that too many variables are relevant I will apply principle components method. |
| Preliminary scope of work in English |
| My thesis will be focused on determining the influence of individual country's cultural characteristics on its macroeconomic stability. It will be partly based on the findings from my previous research (Bachelors Thesis). Based on the literature and on my previous findings the cultural differences between nations affect productivity.
In this Master Thesis I would like to test the influence of the suitable cultural characteristics (Hofstede’s Dimension and World Value Survey) on macroeconomic stability. The macroeconomic stability will be represented by macroeconomic (in)stab\-ility index which is composed of most important macroeconomic stability factors – inflation rate, public deficit (as ratio) and others. The composition of macroeconomic instability index is described in literature (Ismihan (2003), The Role of Politics and Instability on Public Spending Dynamics and Macroeconomic Performance: Theory and Evidence from Turkey, Ph.D. Thesis, METU, Ankara, December 2003). The basic model will be tested using linear regression analysis. Also I would like to run secondary regressions – to check the robustness of the variables' effect. Within the literature the correcting for the endogeneity bias is discussed. I will cover the endogeneity issue either through instrumental variables (as used e.g. in the paper of Sascha Buetzer, Christina Jordan and Livio Stracca, Euro Area Imbalances: A Matter of Culture?), or through employing panel vector autoregression techniques (e.g. in Boubtane, Ekrame and Coulibaly, Dramane and Rault, Christophe, Immigration, Growth, and Unemployment: Panel VAR Evidence from OECD Countries. LABOUR, Vol. 27, Issue 4, pp. 399-420, 2013.), or through other suitable technique. I will work with panel data. I will try to include more than 50 countries for the period longer than 20 years. I will use the economic data from the World Bank database, the cultural data from Hofstede’s research and World Value Survey. The findings of the Thesis could outline the possible answers why some countries are experiencing worse macroeconomic instability when started at the same position as other. Hypothesis (H1) Macroeconomic stability is influenced by cultural characteristics (H2) Long-term orientation has positive impact on macroeconomic stability. (H3) Trust has positive impact on macroeconomic stability. Methodology The model will be tested using GLS technique. If it turns out that too many variables are relevant I will apply principle components method. |