Informal Institutions, Cultural Orientation, and Inclusive Growth in a Complex Socioeconomic System: Evidence from China

Using China Family Panel Studies (CFPS) data, this paper examines the relationship between province-level cultural orientation and inclusive growth within a complex socioeconomic system. We construct a multidimensional index covering long-term orientation, entrepreneurial spirit, openness, contractual spirit, and prosocial norms. Fixed-effects estimates show that a stronger orientation toward co-creation and sharing is associated with higher individual income and lower relative income deprivation. The results remain robust across alternative samples, measures, outcomes, and specifications. The mechanism analysis identifies non-farm employment as a plausible channel among rural residents, entrepreneurial activity among urban residents, and household transfer income in both groups. The income relationship is stronger among urban residents, men, and individuals with greater human capital, whereas the deprivation relationship is stronger among rural residents, women, and likewise those with greater human capital. Regionally, these relationships are strongest in the Central and Western regions, respectively. Overall, a multidimensional cultural orientation toward participation, opportunity creation, reliable exchange, and mutual support may provide a social foundation for inclusive growth.