Economic complexity and national culture

correlation analysis from an income perspective

Abstract

The different characteristics of the cultural dimensions of a country give rise to different collective behaviors that can impact on different ways of living, including the organization of work and the economy in general. This study investigated the correlations between Hofstede's cultural dimensions (power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance, long-term orientation, and indulgence-restriction) and countries' economic complexity indices. The results revealed significant correlations between culture and complexity, varying with income level. Smaller power distance, greater individualism and greater indulgence are associated with more complex economies, based on innovation and scientific research. Masculinity-femininity and uncertainty avoidance showed no significant correlation in any of the cases. Greater long-term orientation is correlated with more export-diversified economies. These conclusions can provide valuable insights for more effective development policies, respecting the cultural particularities of each country.