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Trust and Economic Growth: Conflicting Results between Cross-Sectional and Panel Analysis

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  • Roth, Felix

    (University of Göttingen)

Abstract

This paper examines the relationship between trust and economic growth. With the help of panel data I conclude that economic growth is negatively related to an increase in trust. My result is contrary to works taking a cross section design in which trust is positively related to growth. The relationship is tested in the context of EU countries, OECD countries, transition countries and developing countries. Interpersonal trust and systemic trust is differentiated.

Suggested Citation

  • Roth, Felix, 2006. "Trust and Economic Growth: Conflicting Results between Cross-Sectional and Panel Analysis," Ratio Working Papers 102, The Ratio Institute, revised 15 Nov 2006.
    • Handle: RePEc:hhs:ratioi:0102
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    File URL: http://www.ratio.se/pdf/wp/fr_trust.pdf
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    References listed on IDEAS

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    Cited by:

    1. Hans Westlund & Frane Adam, 2009. "Social Capital and Economic Performance: A Meta-analysis of 65 Studies," European Planning Studies, Taylor & Francis Journals, vol. 18(6), pages 893-919, November.
    2. Oktay KIZILKAYA & Murat ÇETÝNKAYA & Emrah SOFUOÐLU, 2017. "Does Social Capital Have an Effect on Industry Production in G7 Countries? Causality Analysis," Journal of Economics Library, KSP Journals, vol. 4(1), pages 54-63, March.
    3. Neira, I. & Portela, M. & Vieira, E., 2010. "Social Capital and growth in European regions," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 10(2).
    4. Pisani, Elena & Franceschetti, G. & Secco, L. & Da Re, R., 2014. "Trust in the LEADER approach: the case study of the Veneto region in Italy," 2014 Third Congress, June 25-27, 2014, Alghero, Italy 197453, Italian Association of Agricultural and Applied Economics (AIEAA).

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    More about this item

    Keywords

    Social Capital; Trust; Economic Growth; Panel Analyis;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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