The Freedom Cube: Correlation between cultural adjustment index, economic freedom index and gross capital formation in 117 and 161 countries

• DOI: 10.22533/at.ed.2163302306119

• Palavras-chave: A13 Relationship of the economy with social values; B25 Austrian School; D24 Capital; E22 Investment; Z1 Cultural economy

• Keywords: A13 Relationship of the economy with social values; B25 Austrian School; D24 Capital; E22 Investment; Z1 Cultural economy

• Abstract:

  The objective of the research was to relate the Hofstede cultural adjustment index, The Heritage Foundation economic freedom index and the gross capital formation of the World Bank. The hypothesis was that culture (X) has a strong influence on: freedom (Y) and gross capital formation (Z), in turn freedom has a strong relationship on capital. The results lead us to the following: the hypothesis between (X);(Y) is accepted because individualism has correlational values between +0.1055 and +0.6697; satisfaction with values between +0.0249 and +0.2729; long term with values between +0.0474 and +0.2504. The hypothesis between (X);(Z) is accepted, which shows values: individualism values between +0.2108 and +0.4000; masculinity between +0.20 and +0.2722; satisfaction +0.1352 and 0.2203; long term +0.0578 and 0.1352. The hypothesis between (Y);(Z) is accepted with the following positive correlational values: judicial effectiveness +0.5559; financial freedom +0.5449; tax burden +0.5409; labor freedom +0.5397; trade freedom +0.5219; fiscal health +0.5211. The conclusion is that individualism is the Source value of freedom and capital formation. The economic freedoms that offer the best conditions to capital are: judicial effectiveness, financial freedom, tax burden, labor freedom, commercial freedom and fiscal health.