Inhoud
Culture and Institutions, Alesina and Giuliano (2015)..................................2
Cultural Distance and Firm Internationalization: A Meta-Analytical Review
and Theoretical Implications, Beugelsdijk et al. (2017)...............................4
Transnational Transfer of Strategic Organizational Practices: A Contextual
Perspective, Kostova's (1999)......................................................................7
Analysing the Deep Determinants of Institutions: Methodological Choices
and Challenges, Maseland (2024)..............................................................11
Guinnane, T. W., & Hoffman, P. (2024). Persistence and historical evidence:
The example of the rise of the Nazi party..................................................15
Ochsner and Roesel, Activated History: The Case of the Turkish Sieges of
Vienna........................................................................................................19
"Culture at the Country Level" by Maseland and van Hoorn......................22
Gorodnichenko, Y., & Roland, G. 2016. Culture, institutions and the wealth
of nations...................................................................................................25
"Cadastres and Economic Growth: A Long-Run Cross-Country Panel" by
D’Arcy et al................................................................................................27
Was Weber Wrong? A Human Capital Theory of Protestant Economic
History by Becker and Woessmann............................................................30
Family Values and the Regulation of Labor by Alesina et al.......................32
“The Social Determinants of the Rule of Law: A Comparison of Jamaica and
Barbados” by Dawson................................................................................35
“Weak, Despotic, or Inclusive? How State Type Emerges from State versus
Civil Society Competition” by Acemoglu and Robinson..............................38
"Keeping It in the Family: Lineage Organization and the Scope of Trust in
Sub-Saharan Africa" by Moscona et al.......................................................41
"The 'Out of Africa' Hypothesis, Human Genetic Diversity, and Comparative
Economic Development" by Ashraf and Galor...........................................42
Gokmen, G., Vermeulen, W. N., & Vézina, P. L. (2020). The imperial roots of
global trade................................................................................................45
Trade, institutions, and ethnic tolerance: Evidence from South Asia. Jha, S.
...................................................................................................................47
,Culture and Institutions, Alesina and Giuliano
(2015)
The article delves into the intricate relationship between cultural dynamics
and formal institutions, exploring how these two broad concepts not only
influence each other but also shape economic outcomes across societies.
The authors begin by pointing out a growing interest in understanding how
cultural traits, which encompass values, norms, and social behaviors,
intersect with institutional frameworks like laws, rules, and organizational
structures. While both "culture" and "institutions" are terms commonly
used in economic and social research, their definitions can be ambiguous,
often leading to confusion in analyzing their respective impacts. The
authors aim to address this by offering clearer definitions, grounded in
existing research, that allow readers to appreciate both the similarities and
the distinctions between culture and institutions.
To frame their investigation, the authors draw upon several historical and
contemporary examples, illustrating how cultural values and institutional
arrangements influence each other in complex and sometimes unexpected
ways. A notable case is Italy’s "free cities" in the Middle Ages, which
fostered a sense of civic engagement and social cooperation that
continues to affect regional governance today. By fostering early
democratic principles and community participation, these medieval
institutions left a lasting cultural imprint on the Italian population. This
historical persistence is one example of how deeply rooted cultural values
can evolve within institutional structures, impacting governance and
economic development across generations. Yet, culture and institutions
are not purely shaped by historical forces; they respond to other factors,
such as geography, environmental conditions, and socio-political events.
The authors devote attention to defining culture in ways that can be
empirically tested and theoretically understood. In economic research,
culture is often described as a set of beliefs and values passed down
through generations, relatively stable over time, and resistant to rapid
change. Using various surveys and datasets, researchers have measured
cultural traits like trust, family loyalty, individualism, and attitudes toward
work, providing insights into how these traits influence economic choices
and collective behaviours. For instance, societies with high levels of
generalized trust tend to foster more robust economic cooperation and
collective welfare, while those with strong family bonds might prioritize
close-knit community obligations over broader societal engagements.
These findings suggest that cultural traits do not just passively reflect
historical conditions but actively shape people’s expectations and
interactions within institutional contexts.
Institutions, in contrast, are described as the formal and informal rules that
structure societal interactions. This includes everything from laws and
,policies to customs and conventions, which work to maintain social order
and guide behaviours. Institutions serve as the "rules of the game," setting
boundaries within which cultural practices operate. But just as institutions
shape culture, they are also shaped by the cultural values of the societies
they serve. For example, formal institutions such as legal systems and
political structures may gain greater legitimacy and effectiveness when
aligned with the cultural values of a society, like trust or respect for
authority. Conversely, when institutions are imposed without regard for
local culture, they may struggle to gain acceptance or lead to unintended
social consequences.
To capture the nuances of this relationship, the authors review empirical
research that attempts to measure the impacts of culture on institutions
and vice versa. Surveys such as the World Values Survey (WVS) and
various experiments have become central tools for gathering data on
cultural traits across countries. Researchers have used data from
immigrant populations to isolate cultural influences from institutional
effects, observing how immigrants from different cultural backgrounds
maintain specific values even when exposed to the same institutional
environments. For instance, studies have shown that second-generation
immigrants often retain parental beliefs about work and redistribution,
which indicates that culture can persist independently of the institutions
governing their new environment. This persistence of cultural beliefs
points to a level of resilience in cultural transmission that formal
institutions may not fully account for.
The article also examines the measurement and categorization of cultural
values. Among the most commonly studied cultural traits is generalized
trust, which refers to an individual's trust in others beyond their immediate
social circle. Trust is measured through surveys that gauge people's
willingness to trust strangers, and it has shown strong correlations with
economic performance indicators. Societies with high levels of trust tend
to have higher levels of economic cooperation and innovation, suggesting
that trust fosters the smooth functioning of markets and social systems.
Another significant cultural trait discussed is the distinction between
individualism and collectivism, where individualistic societies emphasize
personal achievements and autonomy, whereas collectivist societies
prioritize group harmony and conformity. Both traits have their trade-offs:
while individualism can promote innovation and economic growth,
collectivism tends to support social cohesion and collective welfare. These
distinctions are important because they help to explain variations in
institutional effectiveness across different cultural settings.
Strong family ties influence economic and social organization. Societies
with strong family bonds, such as those in Southern Europe and Latin
America, often prioritize family loyalty and place a high value on the role
of family in daily life. This focus on family can affect labour markets, as
family-owned businesses are more common and community welfare is
often managed within kin networks. However, strong family bonds can
sometimes hinder broader societal engagement, as loyalty to family may
take precedence over civic responsibility or participation in public
, institutions. In contrast, societies with weaker family ties may rely more on
formal institutions for welfare and social support, creating different forms
of economic organization and social behaviour.
The authors also provide insight into how beliefs about work and success
influence economic policies, noting that societies vary widely in their
perceptions of the role of hard work versus luck in achieving success. In
the United States, for instance, the "American Dream" ideal reinforces the
belief that hard work leads to upward mobility, influencing attitudes
toward welfare policies and redistribution. In contrast, European societies
often emphasize the role of external factors, such as social structures or
luck, in economic success, leading to stronger support for welfare systems.
These deeply held beliefs about work and success are not only culturally
embedded but also affect political preferences, shaping the economic
policies and institutional structures of different societies.
The authors underscore the importance of acknowledging cultural
variations in policy design. Efforts to improve institutions in developing or
transitioning economies must consider the cultural context to avoid
mismatches between policy intentions and social behaviours. For example,
policies promoting individual entrepreneurship may encounter resistance
in collectivist societies, where community interests are prioritized.
Similarly, welfare policies in societies with strong family ties may need to
be tailored to reflect existing support networks, rather than assuming that
formal welfare institutions will replace traditional family-based care. This
cultural sensitivity is critical for creating policies that are both effective
and sustainable.
Culture and institutions interact in ways that are both reciprocal and
deeply intertwined, shaping not only economic outcomes but also the
fundamental ways in which societies function. While culture provides the
social foundations on which institutions are built, institutions reinforce and
sometimes transform cultural values, contributing to a cycle of mutual
influence that evolves over time. By analysing this interplay, the authors
bridge gaps in economic research and encourage more nuanced
approaches to understanding how culture and institutions shape societies
in both the short and long term.
Cultural Distance and Firm
Internationalization: A Meta-Analytical
Review and Theoretical Implications,
Beugelsdijk et al. (2017)
The study takes a deep and comprehensive look at the field of cultural
distance research within the realm of international business, specifically
focusing on its implications for firm internationalization. This paper is
Culture and Institutions, Alesina and Giuliano (2015)..................................2
Cultural Distance and Firm Internationalization: A Meta-Analytical Review
and Theoretical Implications, Beugelsdijk et al. (2017)...............................4
Transnational Transfer of Strategic Organizational Practices: A Contextual
Perspective, Kostova's (1999)......................................................................7
Analysing the Deep Determinants of Institutions: Methodological Choices
and Challenges, Maseland (2024)..............................................................11
Guinnane, T. W., & Hoffman, P. (2024). Persistence and historical evidence:
The example of the rise of the Nazi party..................................................15
Ochsner and Roesel, Activated History: The Case of the Turkish Sieges of
Vienna........................................................................................................19
"Culture at the Country Level" by Maseland and van Hoorn......................22
Gorodnichenko, Y., & Roland, G. 2016. Culture, institutions and the wealth
of nations...................................................................................................25
"Cadastres and Economic Growth: A Long-Run Cross-Country Panel" by
D’Arcy et al................................................................................................27
Was Weber Wrong? A Human Capital Theory of Protestant Economic
History by Becker and Woessmann............................................................30
Family Values and the Regulation of Labor by Alesina et al.......................32
“The Social Determinants of the Rule of Law: A Comparison of Jamaica and
Barbados” by Dawson................................................................................35
“Weak, Despotic, or Inclusive? How State Type Emerges from State versus
Civil Society Competition” by Acemoglu and Robinson..............................38
"Keeping It in the Family: Lineage Organization and the Scope of Trust in
Sub-Saharan Africa" by Moscona et al.......................................................41
"The 'Out of Africa' Hypothesis, Human Genetic Diversity, and Comparative
Economic Development" by Ashraf and Galor...........................................42
Gokmen, G., Vermeulen, W. N., & Vézina, P. L. (2020). The imperial roots of
global trade................................................................................................45
Trade, institutions, and ethnic tolerance: Evidence from South Asia. Jha, S.
...................................................................................................................47
,Culture and Institutions, Alesina and Giuliano
(2015)
The article delves into the intricate relationship between cultural dynamics
and formal institutions, exploring how these two broad concepts not only
influence each other but also shape economic outcomes across societies.
The authors begin by pointing out a growing interest in understanding how
cultural traits, which encompass values, norms, and social behaviors,
intersect with institutional frameworks like laws, rules, and organizational
structures. While both "culture" and "institutions" are terms commonly
used in economic and social research, their definitions can be ambiguous,
often leading to confusion in analyzing their respective impacts. The
authors aim to address this by offering clearer definitions, grounded in
existing research, that allow readers to appreciate both the similarities and
the distinctions between culture and institutions.
To frame their investigation, the authors draw upon several historical and
contemporary examples, illustrating how cultural values and institutional
arrangements influence each other in complex and sometimes unexpected
ways. A notable case is Italy’s "free cities" in the Middle Ages, which
fostered a sense of civic engagement and social cooperation that
continues to affect regional governance today. By fostering early
democratic principles and community participation, these medieval
institutions left a lasting cultural imprint on the Italian population. This
historical persistence is one example of how deeply rooted cultural values
can evolve within institutional structures, impacting governance and
economic development across generations. Yet, culture and institutions
are not purely shaped by historical forces; they respond to other factors,
such as geography, environmental conditions, and socio-political events.
The authors devote attention to defining culture in ways that can be
empirically tested and theoretically understood. In economic research,
culture is often described as a set of beliefs and values passed down
through generations, relatively stable over time, and resistant to rapid
change. Using various surveys and datasets, researchers have measured
cultural traits like trust, family loyalty, individualism, and attitudes toward
work, providing insights into how these traits influence economic choices
and collective behaviours. For instance, societies with high levels of
generalized trust tend to foster more robust economic cooperation and
collective welfare, while those with strong family bonds might prioritize
close-knit community obligations over broader societal engagements.
These findings suggest that cultural traits do not just passively reflect
historical conditions but actively shape people’s expectations and
interactions within institutional contexts.
Institutions, in contrast, are described as the formal and informal rules that
structure societal interactions. This includes everything from laws and
,policies to customs and conventions, which work to maintain social order
and guide behaviours. Institutions serve as the "rules of the game," setting
boundaries within which cultural practices operate. But just as institutions
shape culture, they are also shaped by the cultural values of the societies
they serve. For example, formal institutions such as legal systems and
political structures may gain greater legitimacy and effectiveness when
aligned with the cultural values of a society, like trust or respect for
authority. Conversely, when institutions are imposed without regard for
local culture, they may struggle to gain acceptance or lead to unintended
social consequences.
To capture the nuances of this relationship, the authors review empirical
research that attempts to measure the impacts of culture on institutions
and vice versa. Surveys such as the World Values Survey (WVS) and
various experiments have become central tools for gathering data on
cultural traits across countries. Researchers have used data from
immigrant populations to isolate cultural influences from institutional
effects, observing how immigrants from different cultural backgrounds
maintain specific values even when exposed to the same institutional
environments. For instance, studies have shown that second-generation
immigrants often retain parental beliefs about work and redistribution,
which indicates that culture can persist independently of the institutions
governing their new environment. This persistence of cultural beliefs
points to a level of resilience in cultural transmission that formal
institutions may not fully account for.
The article also examines the measurement and categorization of cultural
values. Among the most commonly studied cultural traits is generalized
trust, which refers to an individual's trust in others beyond their immediate
social circle. Trust is measured through surveys that gauge people's
willingness to trust strangers, and it has shown strong correlations with
economic performance indicators. Societies with high levels of trust tend
to have higher levels of economic cooperation and innovation, suggesting
that trust fosters the smooth functioning of markets and social systems.
Another significant cultural trait discussed is the distinction between
individualism and collectivism, where individualistic societies emphasize
personal achievements and autonomy, whereas collectivist societies
prioritize group harmony and conformity. Both traits have their trade-offs:
while individualism can promote innovation and economic growth,
collectivism tends to support social cohesion and collective welfare. These
distinctions are important because they help to explain variations in
institutional effectiveness across different cultural settings.
Strong family ties influence economic and social organization. Societies
with strong family bonds, such as those in Southern Europe and Latin
America, often prioritize family loyalty and place a high value on the role
of family in daily life. This focus on family can affect labour markets, as
family-owned businesses are more common and community welfare is
often managed within kin networks. However, strong family bonds can
sometimes hinder broader societal engagement, as loyalty to family may
take precedence over civic responsibility or participation in public
, institutions. In contrast, societies with weaker family ties may rely more on
formal institutions for welfare and social support, creating different forms
of economic organization and social behaviour.
The authors also provide insight into how beliefs about work and success
influence economic policies, noting that societies vary widely in their
perceptions of the role of hard work versus luck in achieving success. In
the United States, for instance, the "American Dream" ideal reinforces the
belief that hard work leads to upward mobility, influencing attitudes
toward welfare policies and redistribution. In contrast, European societies
often emphasize the role of external factors, such as social structures or
luck, in economic success, leading to stronger support for welfare systems.
These deeply held beliefs about work and success are not only culturally
embedded but also affect political preferences, shaping the economic
policies and institutional structures of different societies.
The authors underscore the importance of acknowledging cultural
variations in policy design. Efforts to improve institutions in developing or
transitioning economies must consider the cultural context to avoid
mismatches between policy intentions and social behaviours. For example,
policies promoting individual entrepreneurship may encounter resistance
in collectivist societies, where community interests are prioritized.
Similarly, welfare policies in societies with strong family ties may need to
be tailored to reflect existing support networks, rather than assuming that
formal welfare institutions will replace traditional family-based care. This
cultural sensitivity is critical for creating policies that are both effective
and sustainable.
Culture and institutions interact in ways that are both reciprocal and
deeply intertwined, shaping not only economic outcomes but also the
fundamental ways in which societies function. While culture provides the
social foundations on which institutions are built, institutions reinforce and
sometimes transform cultural values, contributing to a cycle of mutual
influence that evolves over time. By analysing this interplay, the authors
bridge gaps in economic research and encourage more nuanced
approaches to understanding how culture and institutions shape societies
in both the short and long term.
Cultural Distance and Firm
Internationalization: A Meta-Analytical
Review and Theoretical Implications,
Beugelsdijk et al. (2017)
The study takes a deep and comprehensive look at the field of cultural
distance research within the realm of international business, specifically
focusing on its implications for firm internationalization. This paper is
