Values and Norms Matter – On the Basic Determinants of Long-Run Economic Development

Sang-Min Park () and Stefan Voigt
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Sang-Min Park: Philipps-University Marburg

No 200822, MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: Over the last couple of decades, it has become a commonplace to claim that “institutions matter” for economic development. Yet, institutions are not exogenous but the result of hu-man action. It is argued here that the values and norms held by substantial parts of society’s members are an important determinant of its institutions. It is further argued that values and norms have both a direct and an indirect effect on economic development: the direct effect materializes because the values and norms also contain the work ethic which, if transformed into behavior, should have direct consequences on economic development. The indirect effect is conjectured to work via the relevant institutions: if institutions are important for economic development and institutions are influenced by the values and norms, then this is a more indi-rect channel through which values and norms can display their impact.

Keywords: Institutions; Values and Norms; Democracy; Rule of Law; Culture; Social Capi-tal; Civil Society; Economic Development; Total Factor Productivity (search for similar items in EconPapers)
JEL-codes: E19 E66 O11 O12 O17 Z13 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2008
New Economics Papers: this item is included in nep-hpe, nep-pol and nep-soc
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:200822

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