Expanding Orientation” variables much affect economic growth, while

Expanding the scope of analysis and assigning
culture a significant role helped to explain the
power of development and underdevelopment.  Culture is a very vast term; we need to
describe it as specific as possible in order to determine its effect on
economic development.  Relation
between culture and economic dynamics has been discussed by various authors. Max
Weber, the German social scientist, concluded that religious values are clear
example of cultural differences which has impact on economic output. Culture
has also impact on behavior of people. Culture represents the behavior of
peoples. Culture relates to economic development as capital,
institutions and social capability. Annual growth rate is basically based on
basic factors of production and also on culture background as other factors. It
uses a number of variables to express these effects, Cultural background
variables are divided in two main groups: “Efficiency Orientation” and “Social
Orientation” variables. “Efficiency Orientation” variables much affect economic
growth, while “Social Orientation” changes are unpredicted. The results confirm
that cultural background has strong role and it’s positively affects annual
growth rates. “Social Orientation” has also positive power for annual growth rates.
Whether directly or indirectly, culture influences the outcome of economic
process or activity. Culture may be considered as the sum of the values, and
perceptions dominating a group of people. Culture understood as an element of
social capital growing literature considers social attitudes, such as trust, as
one of the main determinants of current economic development. Economists
consider trust as the first element of economic culture which affects the
economic outcome.  Trust is an important factor for economic activity. Trust makes investors
willing to take part in transactions with each other, which rise the spending
which ultimately increase the investment which cause increase in  growth rate. Peoples work harder to achieve
their target, Economic success or failure results from people actions. In this regard, trust appears as the keystone for successful economic
development.  A nation can’t ignore
culture as a factor of development .The United
States of America said to be where they are today as a result of management and
development of their cultural values. So economist believe that  culture has impact on economic development and
growth but how much  it affects economic
development, is still a debate among the economists . If individuals have
higher levels of control, the overall economic development level raises in the
economy. Respect, also considered as the cultural element. The higher respect
level encourage outsider to trade which leads to higher economic development
level. Culture plays a role in economic development. Cultural elements may not
fully explain the whole relation, but they are somehow relevant. Whether directly or indirectly, culture influences the outcome of
economic process and cultural change effects growth of economy

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