Can Hofstede's Cultural Dimensions Help Explain Differences in the Macroeconomic And Financial Stability of Nations? A Comparative Analysis of Germany and Greece

Open Access
Author:
Kasal, Paul Thomas
Area of Honors:
Elective Area of Honors - International Business
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Terrence Robert Guay, Thesis Supervisor
  • Terrence Robert Guay, Honors Advisor
  • Vernis Michael Welmon, Faculty Reader
Keywords:
  • Culture
  • Economics
  • Germany
  • Greece
Abstract:
The purpose of this thesis is to determine whether culture can explain the differences between the macroeconomic and financial stability of different nations. I use Geert Hofstede’s cultural dimensions indexes of power distance, uncertainty avoidance, individualism and collectivism, and masculinity and femininity to perform a comparative analysis of Germany and Greece. Based on each country’s scores for the four indexes, I look at whether particular characteristics attributed to each index can be observed in Germany or Greece. The goal is to find out which, if any, cultural dimensions can be used to explain the macroeconomic and financial differences between Germany and Greece.