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Trust and growth: a shaky relationship

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Author Info

  • Niclas Berggren

    ()

  • Mikael Elinder

    ()

  • Henrik Jordahl

    ()

Abstract

We conduct an extensive robustness analysis of the relationship between trust and growth by investigating a later time period and a bigger sample than in previous studies. In addition to robustness tests that focus on model uncertainty, we systematize the investigation of outlier influence on the results by using the robust estimation technique Least Trimmed Squares. We find that when outliers (especially China) are removed, the trust-growth relationship is no longer robust. On average, the trust coefficient is half as large as in previous findings.

(This abstract was borrowed from another version of this item.)

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File URL: http://hdl.handle.net/10.1007/s00181-007-0158-x
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Bibliographic Info

Article provided by Springer in its journal Empirical Economics.

Volume (Year): 35 (2008)
Issue (Month): 2 (September)
Pages: 251-274

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Handle: RePEc:spr:empeco:v:35:y:2008:i:2:p:251-274

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Related research

Keywords: Trust; Growth; Robustness; Social capital; Outliers; O40; Z13;

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