Search

Does capitalism perform better when embedded in certain cultures? Given the wide range of economic outcomes, we address potential causes for the effectiveness or ineffectiveness of institutional constraints. This paper argues that culture matters for the success of capitalist institutions, specifically economic freedom. We claim that different cultures may raise or lower the productivity of economic institutions by either constraining or supporting these rules. We analyze this relationship empirically by examining how the interaction between economic freedom and culture affects economic growth. Our results suggest that culture does, indeed, enhance the effectiveness of capitalism and its subsequent impact on growth. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to answer specifically the question whether one country can model after another with considerable structural differences. First, using Japan's and Korea's time series data, it attempts to identify both the similarities and dissimilarities in economic changes of the two over the past three decades. Second, it introduces into the macromodels some new important factors such as defense spending, social stability and other socio-economic factors which seem to be significant in explaining the differences between the two countries. [ABSTRACT FROM AUTHOR]