Culture Rules: The Foundations of the Rule of Law and Other Norms of Governance

56 Pages Posted: 24 Jun 2002

See all articles by Amir N. Licht

Amir N. Licht

Interdisciplinary Center (IDC) Herzliyah - Radzyner School of Law; European Corporate Governance Institute (ECGI)

Chanan Goldschmidt

Interdisciplinary Center (IDC) Herzliyah - Radzyner School of Law

Shalom H. Schwartz

Hebrew University of Jerusalem - Department of Psychology; National Research University Higher School of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: December 12, 2006

Abstract

This study presents evidence about relations between national culture and social institutions. We operationalize culture with data on cultural dimensions for over 50 nations adopted from cross-cultural psychology and generate testable hypotheses about three basic social norms of governance: the rule of law, corruption, and democratic accountability. These norms correlate systematically and strongly with national scores on cultural dimensions and also differ across cultural regions of the world. Using a linguistic variable on pronoun drop as an instrument for cultural emphases on autonomy versus embeddedness points to a significant influence of culture on governance, with a clear link to economic outcomes. Using cultural profiles of a previous generation as an instrument indicates relative stability of cultural orientations and of their correlates. The results suggest a framework for understanding the relations between fundamental institutions of social order as well as policy implications for reform programs.

JEL Classification: K00, O10, O19, P20, P26, P50, Z13

Suggested Citation

Licht, Amir N. and Goldschmidt, Chanan and Schwartz, Shalom H., Culture Rules: The Foundations of the Rule of Law and Other Norms of Governance (December 12, 2006). Available at SSRN: https://ssrn.com/abstract=314559 or http://dx.doi.org/10.2139/ssrn.314559

Amir N. Licht (Contact Author)

Interdisciplinary Center (IDC) Herzliyah - Radzyner School of Law ( email )

P.O. Box 167
Herzliya, 46150
Israel
972-9-952-7332 (Phone)
952-9-9513323 (Fax)

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium
952-9-9513323 (Fax)

HOME PAGE: http:/www.ecgi.org

Chanan Goldschmidt

Interdisciplinary Center (IDC) Herzliyah - Radzyner School of Law ( email )

P.O. Box 167
Herzliya, 46150
Israel

Shalom H. Schwartz

Hebrew University of Jerusalem - Department of Psychology ( email )

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

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