Cultural values and the global financial crisis: a missing link?

BALTACI A., Cergibozan R., ARI A.

EURASIAN ECONOMIC REVIEW, vol.12, no.3, pp.507-529, 2022 (ESCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 12 Issue: 3
  • Publication Date: 2022
  • Doi Number: 10.1007/s40822-022-00208-6
  • Journal Name: EURASIAN ECONOMIC REVIEW
  • Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus
  • Page Numbers: pp.507-529
  • Keywords: Culture, Financial crisis, Self-organizing maps, Logit, NATIONAL CULTURE, DETERMINANTS, VULNERABILITY
  • Marmara University Affiliated: Yes

Abstract

We empirically investigate the role of cultural values on the occurrence of the global financial crisis. We use data based on Hofstede (Culture's consequences: comparing values, behaviors, institutions and organizations across nations, 2001) cultural values indexes and employ two econometric approaches, the self-organizing maps and logit, in a panel set of 38 developed and developing countries. We find that culture has a statistically and economically significant effect on the occurrence of the global financial crisis of 2007-2009. The relationship between cultural factors and the crisis occurrence remains strong when we consider control variables representing different sectors of the economy.