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Purpose
The main goal of this paper is to analyze the effects of societal culture attributes on regional disparity.
Design/methodology/approach
This paper uses cross‐country data to identify the variables that determine the regional disparity and the gap between the richest and poorest regions in the economy.
Findings
The most interesting result of this study is that there exists a significant role played by societal cultural differences in the explanation of the regional disparity and the gap between rich and poor regions.
Originality/value
As far as we know, this paper makes the first attempt to explain inter‐regional disparity according to culture attributes. We estimate that cultural variables add about 5 percent to the explanation of the variation of the indices of inequality between regions.
© Emerald Group Publishing Limited
2011
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