Does the Specific Matrix of Cultural Values and Ethnic- Religious Diversity Hinder Economic Development in African Region?

Abstract

Abstract

This study empirically probes the role of culture in fostering or hindering economic performance in Africa. Our results show that cultural values appear to some extant have statistically significant and operationally meaningful economic effects. We also test the effect of ethnic and religious diversity which discourage economic growth. Using the OLS method, we appraised the baseline endogenous economic growth model to incorporate cultural variables. Cultural attitudes toward trust and self-determination were found to affect economic development significantly. However, respect was associated with unexpected signs of an inverse relationship with economic growth. Further, the cultural motivational index (CMI) was also negatively associated with growth.

This implies that the traditional values of African culture do not lend support to economic growth. While the ethnic and religious fractionalization may not be harmful to development, ethnic and religious polarization affects the development more adversely.