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Does Culture Matter?

Working paper by Andrey Shcherbak

Working paper "DOES CULTURE MATTER? THE IMPACT OF TOLERANCE ON ECONOMIC MODERNIZATION IN A COMPARATIVE PERSPECTIVE" by Research Fellow Andrey Shcherbak.

Is tolerance important for modernization? What can one say about the relationship and causality between tolerance and modernization? It is assumed that an increase in tolerance, expressed as a tolerant attitude towards homosexuality, gender equality, and a decrease in xenophobia, has a significant impact on modernization. Here modernization is understood in a ―narrow‖ sense, referring to economic and technological modernization. The author uses the ―cultural modernization‖ approaches of R.Inglehart and the ―creative class‖ concept of R.Florida. Based on data from 55 countries, the author concludes that tolerance does have a significant impact on modernization, with gender equality being the most predictive factor and proving to be important in three groups of compared models (Index of Modernization, Innovation Index, and Investment Index). A tolerant attitude towards homosexuals and a decrease in xenophobia play a less significant role. Gender equality is an important predictor for modernization because women are in the majority – not the minority – and lowering entry barriers for women leads to their inclusion in a post-industrial economy. The results show that this is extremely important for economic modernization.

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