A new insight into the methodology of cultural economics

Abstract

[Abstract]: In the last decades, the topic regarding the relationship between culture and economics received an increased interest. Given the fact that most of the research on this topic uses historical evidence and employs qualitative and mixed research methods, the present paper aims at enriching its methodology by proposing a valuable quantitative instrument: a cultural matrix based on Hofstede cultural dimensions’ theory. After analyzing different computing methods of cultural distance, the most appropriate one seemed to be a weighted composite method. The applicability of the composite measures of cultural distance (unweighted and weighted) were compared in a model explaining Spanish migration flows to 35 OECD countries in the period 2005-2017. The results partially confirm the findings of other studies, indicating mixed results regarding the relationship between cultural distance and migration flows. The paper provides new insights by recommending the use of weighted composite measures of cultural distance in economic analyses. In addition, the paper highlights the importance of drawing appropriately each cultural dimensions’ weights, given that inadequate estimations of cultural dimensions’ weights can significantly alter the research results and misrepresent the reality.