Economists have long looked at the different factors affecting economic growth. Papers have looked at the importance of factors, such as labor, education and capital on growth and prosperity. Research has also looked into the importance of past and present institutions on growth. There is even some research on the impact of religion on growth.
There is still little research on the role of culture and norms on economic growth. Different cultures can instill different kinds of values in a person, and so, on the aggregate, they can have macroeconomic consequences. For example,
(i) societies that do not allow women to undertake economic activities because of orthodox cultural norms may not enjoy the desired rate of growth; even though the laws may treat men and women equally;
(ii) societies whose norm is for children to take care of the elders may not see much accumulation of retirement savings by the current working age population (in stocks/bonds and other assets), and that could affect asset accumulation and production in a country;
(iii) cultures that look down upon a certain caste, ethnic group or occupation (such as domestic help) may reduce the growth potential of the stigmatized group, and even if the laws mandate equality of all, cultural norms may prevent people from following the laws.
More research should be done to examine the link between culture and growth. Culture seems to be a slow-moving variable, and so, the impact of past culture could affect present growth, even if physical factors that affect economic growth are present in the country.
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