Trust and Economic Growth: Conflicting Results between Cross-Sectional and Panel Analysis
AbstractThis 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.
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Bibliographic InfoPaper provided by The Ratio Institute in its series Ratio Working Papers with number 102.
Length: 22 pages
Date of creation: 30 Aug 2006
Date of revision: 15 Nov 2006
Publication status: Forthcoming in Kyklos.
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Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Phone: 08-441 59 00
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Web page: http://www.ratio.se/
More information through EDIRC
Social Capital; Trust; Economic Growth; Panel Analyis;
Find related papers by 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, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-09-03 (All new papers)
- NEP-DEV-2006-09-03 (Development)
- NEP-MAC-2006-09-03 (Macroeconomics)
- NEP-SOC-2006-09-03 (Social Norms & Social Capital)
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