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Cultural and Institutional Antecedents of Country Risk

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Abstract

This study explores the effects of cultural and institutional factors on country risk. We use the 2004 Global Leadership and Organizational Behavior Effectiveness Research study’s estimations of nine cultural dimensions, as well as measures of democracy and gender empowerment, in a sample consisting of 55 countries. The results indicate that gender empowerment, humane orientation, and institutional collectivism have a larger impact on country risk than democracy, uncertainty avoidance, and gender egalitarianism. The interdependency of some cultural dimensions suggests that cultural and institutional differences could be used to predict mean country risk ratings.

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Notes

  1. Hofstede points out that the cultural dimensions are theoretical constructions that originally came from standard analytical issues described in Gregg and Banks (1965) and Inkeles and Levinson (1969). For further explanation of the theoretical sources of his study see Hofstede (1980).

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Acknowledgements

We would like to thank Mark Weinstock and Joseph Morreale for the valuable comments on an early draft of this paper.

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Authors and Affiliations

  1. Pace University, NYC, 41 Park Row, New York, NY, USA

    Anna Shostya

  2. Zicklin School of Business, Baruch College, CUNY, 55 Lexington Avenue, New York, NY, USA

    Moshe Banai

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  1. Anna Shostya
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  2. Moshe Banai
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Correspondence to Anna Shostya.

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Shostya, A., Banai, M. Cultural and Institutional Antecedents of Country Risk. Atl Econ J 45, 351–364 (2017). https://doi.org/10.1007/s11293-017-9548-4

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