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Trade, Social Values, and the Generalized Trust

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  • Kenneth S. Chan

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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  • Kenneth S. Chan, 2007. "Trade, Social Values, and the Generalized Trust," Southern Economic Journal, John Wiley & Sons, vol. 73(3), pages 733-753, January.
    • Handle: RePEc:wly:soecon:v:73:y:2007:i:3:p:733-753
    DOI: 10.1002/j.2325-8012.2007.tb00799.x
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    References listed on IDEAS

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    Cited by:

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    2. Berggren, Niclas & Bjørnskov, Christian, 2023. "Does globalization suppress social trust?," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 443-458.

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