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Trust as a catalyst for regional growth in a decentralized Europe: The interplay between informal and formal institutions in driving economic growth

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  • Jonathan Muringani

Abstract

Empirical studies examining the interplay between informal and formal institutions on economic growth are scarce. As a result, we do not know how differences in trust affect the economic returns of the quality of regional governments and their autonomy. A panel regression analysis of 208 regions in 21 EU countries shows that informal and formal institutions matter for economic growth, individually and in combination. More specifically, trust substitutes the quality of regional government but does not affect the economic impact of its degree of decentralization. Therefore, policymakers need to think creatively about harnessing institutions to promote economic growth.

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  • Jonathan Muringani, 2022. "Trust as a catalyst for regional growth in a decentralized Europe: The interplay between informal and formal institutions in driving economic growth," Journal of Regional Science, Wiley Blackwell, vol. 62(5), pages 1229-1249, November.
    • Handle: RePEc:bla:jregsc:v:62:y:2022:i:5:p:1229-1249
    DOI: 10.1111/jors.12594
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    Cited by:

    1. Daniel Aparicio-Pérez & Maria Teresa Balaguer-Coll & Emili Tortosa-Ausina, 2023. "On the relative contributions of national and regional institutions to economic development," Working Papers 2023/01, Economics Department, Universitat Jaume I, Castellón (Spain).
    2. BUNDE Aggrey Otieno, 2023. "Governance And Regional Development Disparities In Kenya," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 23(1), pages 51-72.
    3. Giuseppe Terzo, 2022. "The economic impact of social entrepreneurship: an exploratory analysis of the linkage between social cooperation and local growth in Italy," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 76(3), pages 17-28, July-Sept.
    4. Iryna Storonyanska & Olena Ivashko & Elena Mieszajkina, 2022. "Trust as a Catalyst of Economic Growth: A National and Regional Breakdown," Sustainability, MDPI, vol. 14(22), pages 1-14, November.

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