Abstract:

The present study argues that the performance of an economy depends on the institutional system of a country; as this, in its turn, organically develops from the culture of that country, the present research also analyzes the relationship between culture, governance and the level of a country’s economic development. Culture significantly influences both human interactions within the economic process and governance, which in turn has an important impact on the economic performance. The study highlights the role the state has to play when it comes to economic performance, an important contribution to this having the rule of law (property rights and the appropriate legal structure) and, respectively, the country’s tradition for order. The chosen case study attempts to explain Romania’s situation regarding the current level of economic development, compared to other European countries, starting from the previously put forward hypothesis, based on the existing institutional system and on the cultural factors that influence economic development.