The linkage between sanctions and infrastructure: How national culture matters

ABSTRACT

This study examines how national culture matters for infrastructure, especially in a severe and uncertain environment arising from the imposition of an economic sanction. To do so, I use the largest and most recent cross-country panel dataset consisting of worldwide countries during the 2013–2019 period and the dynamic difference-in-differences technique to obtain the research aims. Overall, I uncover evidence that the development of infrastructure in the domestic countries is negatively impacted by economic sanctions. More importantly, I highlight the fact that countries with masculinity culture do better in terms of electricity and telecommunication infrastructure in a business environment where sanctions are applied. In contrast, the individualism culture may worsen the negative impact of sanction on the development of transportation infrastructure. In brief, by evaluating the impact of sanctions on infrastructure development from a cultural perspective, this study may make a variety of contributions to the economic literature.

KEYWORDS:

• Sanction
• national culture
• infrastructure
• electricity
• telecommunication
• transportation

Disclosure statement

No potential conflict of interest was reported by the author.

Additional information

Funding

This research is funded by National Economics University, Vietnam.

Notes on contributors

Hieu Thanh Nguyen

Hieu Thanh Nguyen is an Associate Professor of Business and Management at the National Economics University in Hanoi, Vietnam. His research has focused on international business, political economy, economic geography, and supply chain management. His recent publications include works in Applied Economics Letters, Social Responsibility Journal, Economic Change and Restructuring, International Journal of Organizational Analysis, and Post-Communist Economies.