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Cs/Fragment 122 07

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One of the main problems when analysing culture and its effects on business outcomes is to isolate its influence from those due to purely economic variables for example the economic position, capital markets, investment etc. The new literature, referred to in Chapter 1 has tried to solve this problem in different ways. For example Botticini and Eckstein (2005)[FN 113 [sic!]] have used case studies. Another approach is to use attitudinal surveys to explain cross-country outcomes. However, the problem here is that variation in how individuals across countries answer these survey questions may reflect as much economic factors as they do cultural differences. [FN 2]

[FN 1: cf. Botticini/Eckstein (2005), pp. 922]

[FN 2: cf. Fernandez (2006) p.4.]

The main problem faced in any analysis of culture and its effects on economic

outcomes is to isolate its influence from those due to purely economic variables (prices, income, etc.). [...] The new literature in this field has met this challenge in different ways. Case studies (e.g. Botticini and Eckstein (2005)) are one direction. Using answers to attitudinal surveys to explain cross-country outcomes is another approach. In that case, however, the problem is that variation in how individuals across countries answer these survey questions may reflect as much economic factors as they do cultural differences.

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The source is referenced, but quotation marks are missing such that the reader is left in the dark as to how much text has been copied and how little it has been adapted.

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