Conditions (Predictor Variables): Theories Explaining Prosperity Differences (B), (C), (D), (E)

Abstract

This chapter defines the conditions elements of the research model in this study (Fig. 10.1007/978-3-030-78498-0_2#Fig1). Therefore, Sects. 5.1–5.7 refer to some influential theories that have sought to explain differences in prosperity between countries from diverse disciplinary perspectives. Potential prosperity factors/theories can be clustered into three groups: (1) cultural and religious values; (2) institutions and economic growth; (3) environment and geography. Each of these distinct theories may contain “a grain of truth” about understanding prosperity imbalances between countries. Ideally, prosperity theories should be complementary instead of competing explanations. For example, geography and environmental theories explain how seasonal lands can provide a society and its economy better conditions to prosper. Institutional theory helps explain how institutions model social prosperity by perpetuating equality loops or by concentrating wealth. Cultural theory contributes to the understanding of the influence of cultural variables, such as religious beliefs and values, on prosperity. Yet, the relations among environment/geography, culture, institutions, and prosperity are highly complex and involve massive historical dynamics which would normally far exceed the scope of empirical research.