Understanding the Individualism-Collectivism Cleavage and Its Effects: Lessons from Cultural Psychology

The central role of culture on economic development has been recognized at least since Max Weber who, in his classic work ‘The Protestant Ethic and the Spirit of Capitalism’, argued that the protestant ethic of Calvinism was a very powerful force behind the development of capitalism in its early phases. Recently economic historians such as Landes (1998) and Mokyr (2010) have emphasized the crucial role of culture in explaining the industrial revolution.

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