Cultural Traits and Business Sophistication
Cultural Traits and Business Sophistication

Summary/Abstract: Economic growth is a result of greater factor endowments, as well as higher productivity in their use and economic efficiency in their application. Increased productivity is a crucial element for competitiveness, or in other words, in production costs relative to the competition. But the link is not simultaneous nor unique, since competitiveness is also linked to the institutional and social framework where it develops. In order to complement the formal theory of growth with unconventional empirical reference points, this work pretends to demonstrate the importance of national cultural traits for business sophistication. The results demonstrate that this relationship exists, and varies depending on the degree of competitiveness that a country has achieved.

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