Culture and current account balances
Nieminen, M., Heimonen, K., & Mangeloja, E. (2015). Culture and current account balances. Applied economics letters, 22 (11), 886-890. doi:10.1080/13504851.2014.985365
Published inApplied economics letters
© 2014 Taylor & Francis. This is a final draft version of an article whose final and definitive form has been published by Taylor & Francis. Published in this repository with the kind permission of the publisher.
This paper contributes to the literature of current account balances by introducing cultural variables that until now have been omitted. The World Values Survey indicates that the Roman Catholics do not consider thrift as important as others. We propose that Catholic countries tend to run current account deficits. This result remains robust even if we control for close to all of the determinants that have been included in previous studies. We find evidence that the inclination of Catholic countries to have high levels of uncertainty avoidance goes to a great length in explaining the result.
MetadataShow full item record
- Kauppakorkeakoulu