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Culture, democracy and regulation

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  • Claudia R. Williamson

    (University of Tennessee at Chattanooga)

Abstract

This paper examines how culture influences business regulation across countries. Empirical analysis reveals that individualistic countries adopt fewer regulations than collectivist countries. This result is independent of political institutions, suggesting that culture directly affects regulation by shaping preferences over economic policy. Individualism’s influence is magnified in democratic countries. These results support a public choice interpretation of regulation where culture may provide an additional check on government’s ability to rent seek via inefficient regulation.

Suggested Citation

  • Claudia R. Williamson, 2021. "Culture, democracy and regulation," Constitutional Political Economy, Springer, vol. 32(1), pages 98-126, March.
    • Handle: RePEc:kap:copoec:v:32:y:2021:i:1:d:10.1007_s10602-020-09319-1
    DOI: 10.1007/s10602-020-09319-1
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    More about this item

    Keywords

    Culture; Individualism; Regulation; Democracy;
    All these keywords.

    JEL classification:

    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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