Cultural influences on economic decision-making

Abstract

In a globalized world, analysing cultural factors has become an efficient tool in a variety of fields, including economics. It is essential for forecasting, as well as for policy creation.

I conducted my thesis in the form of literature review, where I utilized Hofstede’s cultural framework. I employed the six cultural dimensions (Power distance, Individualism, Masculinity, Uncertainty Avoidance, Long-term Orientation, and Indulgence) and evaluated their impact on economic decision-making. In the “Discussion” section of my thesis I defined the main areas of influence for these cultural factors. These areas are trade, policy compliance, entrepreneurship, investments, and planning. In the final sections I also specified the possible implications of the research on cultural values in economics, as well as the limitations of Hofstede’s framework.