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201493 https://hdl.handle.net/2286/R.2.N.201493 http://rightsstatements.org/vocab/InC/1.0/ All Rights Reserved 2025 106 pages Doctoral Dissertation Academic theses en Liu, Xiaosong Wang, Yimin Wang, Tan Zhu, Qigui Arizona State University Partial requirement for: D.B.A., Arizona State University, 2025 Field of study: Business Administration Between the 16th and 19th century, the economic trajectories of China and the UK diverged significantly. With the UK embarking on the industrial revolution while China remained entrenched in traditional agriculture. This study explores the influence of cultural factors on productivity by proposing a framework that integrates production and cultural functions and verifies this framework through historical data analysis. Cultural variables are defined as (a) open/closed survival structures, which is quantified by tariff proportion × urbanization rate × (1-interest rate change); ( b) agricultural/industrial-commercial mindsets, which is quantified by (1 - agriculture proportion) × education level to gauge cultural impact on capital, labor and tech progress. The key findings are: (1) Cultural variables boost capital and labor productivity's marginal output. (2) Change of cultrual variables pushes structural changes in economic development routinesm, which facilitates innovative disruptions. (3) During that period, cultural variables weakly explain China's per capita GDP change but strongly explain the UK's. Business Administration Comparative Analysis Culture Modes of thinking Productivity Survivial structure How Culture Affect Growth: A Historical Analysis Based on the Great Divergence between the East and the West