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Trade, Social Values, and the Generalized Trust

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  • Kenneth S. Chan

    ()
    (Department of Economics and Finance, City University of Hong Kong)

Abstract

The present paper investigates, empirically, whether global economic integration can lead to national social disintegration, as proclaimed by Rodrik. One can perhaps conjecture that a drop in the generalized trust in a country may signal a rise in social disintegration. Using the survey data on the generalized trust provided by the World Values Surveys, the present paper finds that, in general, there is a positive openness–trust relationship. However, when globalization undermines domestic income distribution, it will weaken this openness–trust relationship. There is also evidence of a threshold inequality above which the openness–trust relationship turns negative.

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Bibliographic Info

Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 73 (2007)
Issue (Month): 3 (January)
Pages: 733–753

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Handle: RePEc:sej:ancoec:v:73:3:y:2007:p:733-753

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Web page: http://www.southerneconomic.org/
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Cited by:
  1. Dearmon, Jacob & Grier, Robin, 2011. "Trust and the accumulation of physical and human capital," European Journal of Political Economy, Elsevier, Elsevier, vol. 27(3), pages 507-519, September.
  2. Yamamura, Eiji, 2013. "Atomic bombs and the long-run effect on trust: Experiences in Hiroshima and Nagasaki," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, Elsevier, vol. 46(C), pages 17-24.
  3. Dearmon, Jacob & Grier, Kevin, 2009. "Trust and development," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 71(2), pages 210-220, August.
  4. Christopher Coyne & Claudia Williamson, 2009. "Trade Openness and Culture," Working Papers 09-05, Department of Economics, West Virginia University.
  5. Nabamita Dutta & Sanjukta Roy, 2013. "The changing face of culture: gauging the impact of a free media," European Journal of Law and Economics, Springer, Springer, vol. 36(1), pages 95-115, August.

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