1. ¹Department of Economics, Finance, and International Business, School of Business, The College of New Jersey, Ewing, NJ, USA
2. ²Department of Finance, Whitman School of Business, Syracuse University, Syracuse, USA

Correspondence: L Tang, Department of Economics, Finance, and International Business, School of Business, The College of New Jersey, Ewing, NJ 08628, USA. Tel: +1 609 771 2240; Fax: +1 609 637 5129; E-mail: tang@tcnj.edu

Received 12 December 2005; Revised 4 January 2008; Accepted 10 January 2008; Published online 22 May 2008.

Abstract

This study offers an update of the Hofstede cultural value dimensions. We argue that changes in economic conditions are the source of cultural dynamics, while the endurance of institutional characteristics provides the foundation for cultural stability. It is found that national wealth, measured by GDP per capita, has a curvilinear relationship with individualism, long-term orientation, and power distance scores. Relatively speaking, uncertainty avoidance and masculinity mainly reflect some rather stable institutional traditions, such as language, religion, climate, ethnic homogeneity, and legal origin, and are less likely to change over time.