The Role of Altruism and Fatalism in Economic Development

Abstract

This thesis empirically tests the hypothesis that countries with cultures that are inherently less fatalistic and more altruistic generally outperform countries with a culture defined by fate and extreme self-­‐centeredness. Data was taken from the most recent World Values Survey (WVS) conducted in 2010 thru 2013. The values incorporated in this study pertain to both the level of personal control an individual believes they have over her own life outcomes, and also the extent to which an individual identifies with the belief that it is important to “do good for society.” The analysis incorporates OLS, 2SLS, and 3SLS in order to estimate the effects of fatalism and altruism on both the level of GDP per capita in 2010, and the Human Development Index estimate for 2010. After controlling for factors related to geography, neoclassical growth, and institutions, results from this analysis imply that cultural variables, such as fatalism and altruism, are determining factors in economic development.