Are cross-cultural differences influential factor in terms of GDP?

This bachelor thesis aims to verify whether the cross-cultural differences significantly affect the development of the GDP. In expressing the cross-cultural differences we got inspired by the model of six cultural dimensions created by G. Hofstede (2010). The dimensional definition of the culture is rather convenient because it allows dividing the overall effect of the culture, into separate impacts of specific cultural dimensions. In the end, the OLS regression analysis of the cross-section data of 35 countries from the year 2015 showed, that the culture has a jointly significant impact on GDP. The results also suggest that the power distance dimension has a significantly negative effect on the GDP, while the indulgence vs restraint dimension affects GDP significantly and positively. Moreover, the final version of the model explains around 68% of the overall variance of the GDP. This suggests that the incorporation of cultural factors in the economic models can lead to better understanding of economic cross-country differences.