Suchergebnisse

Recognising the complementarity of the multiple factors for economic development, this paper focuses culture as one of the important development factors and assesses the effects of recent changes in Korean culture on its economic prospects. Different from the traditional Confucian model in which culture affects the economy through Confucian cultural features such as thriftiness, the work ethic and educational zeal, this paper introduces the concept of transaction costs as an intermediary between culture and economic development. Under this model, culture affects the level of social trust which in turn has an effect on transaction costs, thereby on economic development, Culture in this model also affects the economy through its impacts on creative capacity of citizens, This paper examines a variety of cultural changes in Korea in the recent past, such as a declining sense of community, trust and law observance, These all raise transaction costs and socio-economic instability which in turn affect the economy adversely, In addition, the future orientation that fosters citizens' creative capacity is weakening in the face of rising socio-economic uncertainty and injustice, Recent cultural changes unpropitious to the Korean economy are reinforced when relevant cultural features are compared to those of advanced countries, Culture is therefore not ceteris paribus for economic development. Adapted from the source document.