Enterprise and Competitiveness

Mark Casson demonstrates how the economic effects of culture--social values such as honesty, dedication, and loyalty--can be analysed in a rigorous fashion. He argues that gains from technology in modern society can be offset by high costs stemming from the missing moral dimension which has implications for economic competitiveness and for social and economic institutions. A strong culture reduced transaction costs and enhances performance--the success of an economy thus depends on the quality of its culture.