Culture and current account balances
Nieminen, M., Heimonen, K., & Mangeloja, E. (2015). Culture and current account balances. Applied Economics Letters, 22(11), 886-890. https://doi.org/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 article 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.
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- Kauppakorkeakoulu 
Related funder(s)Academy of Finland
Funding program(s)Academy Project, AoF
Additional information about fundingMika Nieminen is thankful for financial support provided by the Yrjö Jahnsson Foundation [grant number 6294], Björn Savén Finnish American Scholarship and OP-Pohjola Group Research Foundation. Kari Heimonen is thankful for financial support provided by the Academy of Finland (Project No. 269339) and the Yrjö Jahnsson Foundation [grant number 6513].
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