Cultural attributes, national saving and economic outcomes

► This paper explores the role of cultural attributes in a nation's welfare. ► First, we use a theoretical model to show that the higher a nation's long term orientation (LTO), the more it chooses to save. ► We also show that nations with higher LTO enjoy a higher level of welfare. ► We complement the theoretical model with empirical analysis using a panel data for 86 countries, from 1999 to 2009. ► The results from the empirical study support our proposition that nations with a higher LTO have higher saving rates.