Abstract:Although a growing number of countries are experiencing structural societal changes characterised by an increased prominence of post materialistic societal goals and personal values, there is limited empirical evidence on the economic effects of post materialism. In this paper, we address this gap in the literature by estimating the effect of post materialism on the level of economic development for a heterogeneous set of countries. Furthermore, in line with the notion that institutions may act as transmission… Show more
“…Kafka and Kostis (2021) finds a negative effect among OECD countries for the period 1981-2021, although they do not control for economic freedom, but for regulatory quality. Jordaan and Dima (2020) and Jordaan (2023) separate direct and indirect effects of post-materialism on economic growth and find the direct effect, which is measured after controlling for institutional quality, to be negative.…”
Section: Literature Review: the Puzzle Of Post-materialist Economic F...mentioning
confidence: 98%
“…More generally, a higher level of post-materialism is associated with institutions, which then leads to higher economic growth. Jordaan and Dima (2020) finds a causality that runs from post-materialism to GDP per capita through institutional quality measured by the World Bank Governance Indicators (Kaufmann et al, 2010), while for Jordaan (2023) such an effect works through economic freedom. In both papers this indirect effect is positive: even after controlling for different possible determinants, a less materialist (a more post-materialist) country has institutions that are not only of higher quality but economically freer.…”
Section: Literature Review: the Puzzle Of Post-materialist Economic F...mentioning
Countries with a higher proportion of people with post-materialist values are freer economically than those with a lower proportion. The reason why this is puzzling is that post-materialist values are not obviously more supportive to economic freedom than materialist ones, and that post-materialism correlates negatively with market friendliness in the West and positively outside it. The paper argues that seeing market attitudes as opinions with which people express their materialist or post-materialist identity, an equilibrium in which post-materialists are market friendly and another one in which they are market unfriendly are both possible. A change in the proportion of post-materialists, however, can easily trigger a shift from one equilibrium to the other. Regressions with data from the Integrated Values Survey confirm that post-materialists are more market unfriendly when their proportion in society is high enough, but this negative effect is mitigated by their political identity, the expressiveness of the individuals themselves, and the ideology of the political parties in their country.
JEL codes: D72, P10, E14
“…Kafka and Kostis (2021) finds a negative effect among OECD countries for the period 1981-2021, although they do not control for economic freedom, but for regulatory quality. Jordaan and Dima (2020) and Jordaan (2023) separate direct and indirect effects of post-materialism on economic growth and find the direct effect, which is measured after controlling for institutional quality, to be negative.…”
Section: Literature Review: the Puzzle Of Post-materialist Economic F...mentioning
confidence: 98%
“…More generally, a higher level of post-materialism is associated with institutions, which then leads to higher economic growth. Jordaan and Dima (2020) finds a causality that runs from post-materialism to GDP per capita through institutional quality measured by the World Bank Governance Indicators (Kaufmann et al, 2010), while for Jordaan (2023) such an effect works through economic freedom. In both papers this indirect effect is positive: even after controlling for different possible determinants, a less materialist (a more post-materialist) country has institutions that are not only of higher quality but economically freer.…”
Section: Literature Review: the Puzzle Of Post-materialist Economic F...mentioning
Countries with a higher proportion of people with post-materialist values are freer economically than those with a lower proportion. The reason why this is puzzling is that post-materialist values are not obviously more supportive to economic freedom than materialist ones, and that post-materialism correlates negatively with market friendliness in the West and positively outside it. The paper argues that seeing market attitudes as opinions with which people express their materialist or post-materialist identity, an equilibrium in which post-materialists are market friendly and another one in which they are market unfriendly are both possible. A change in the proportion of post-materialists, however, can easily trigger a shift from one equilibrium to the other. Regressions with data from the Integrated Values Survey confirm that post-materialists are more market unfriendly when their proportion in society is high enough, but this negative effect is mitigated by their political identity, the expressiveness of the individuals themselves, and the ideology of the political parties in their country.
JEL codes: D72, P10, E14
“…The idea that the relation between social values and economic growth is mediated by institutions and economic freedom can be found in works of Johnson and Lenartowicz (1998), Williamson and Mathers (2011), Jordaan and Dima (2020) and Jora et al (2020). In addition to standard economic variables such as physical capital, human capital and innovation, non-standard variables such as geographic latitude, institutions, culture and social capital are considered important factors in explaining economic success (Roşca, 2020).…”
Section: Introductionmentioning
confidence: 99%
“…They also found that economic freedom is more important than culture in explaining economic growth. Jordaan and Dima (2020) analyzed the effect of post-materialism on economic development. They concluded that institutions are the channels of transmission for the indirect effects of social values.…”
The objective of the article is the analysis of the relation between social values, economic freedom and economic growth. The first part explores the international empirical literature, the second part presents the main outputs of the statistical analysis. There are two statistical techniques used in the empirical analysis: the correlational analysis and the cross-country time series panel regression. The conclusion is that the poorer countries in the sample with lower scores of economic freedom and achievement motivation have a higher speed of economic growth. There is an indirect impact of the social values on the economic growth.
“… Jordaan and Dima (2019), however, conclude that the negative effect is only the direct effect of post‐materialism. The indirect one works through institutions and increases growth.…”
The Integrated Values Survey shows that the positive relationship between religiosity and market friendliness is a uniquely Western feature. With the help of public choice theory, the author hypothesises that this Western uniqueness is the result of the way the dimensions of political ideologies are formed in the West. The hypothesis is supported by regressing an index of market friendliness on a religiosity index, political identity, and a measure of 'ideological capital'. Accounting for the latter two, the positive association of religiosity with market friendliness vanishes, even in the West.
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