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Public policy, trust and growth: disclosure of government information in Japan

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  • Yamamura, Eiji

Abstract

Since the end of the 1990s, local governments in Japan have enacted Information Disclosure Ordinances, which require the disclosure of official government information. This paper uses Japanese prefecture-level data for the period 1998–2004 to examine how this enactment affected economic growth. Furthermore, this paper explores how generalized trust is associated with the effect of information disclosure on economic growth. The Dynamic Panel model is used to control for unobserved prefecture specific effects and endogenous bias. The major findings are: (1) disclosure of government information has a positive effect on GDP growth; and (2) generalized trust enhances this effect on GDP growth. This implies that social trust has a critical influence on the effectiveness of policy.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 27703.

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Date of creation: 20 Dec 2010
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Handle: RePEc:pra:mprapa:27703

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Keywords: Information disclosure; Local government; Trust; Growth;

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References

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  1. Berggren, Niclas & Elinder, Mikael & Jordahl, Henrik, 2007. "Trust and Growth: A Shaky Relationship," Working Paper Series 705, Research Institute of Industrial Economics.
  2. Ludger Schuknecht & Antonio Afonso & Vito Tanzi, 2003. "Public sector efficiency: an international comparison," Working Paper Series 242, European Central Bank.
  3. Lars-Erik Borge & Torberg Falch & Per Tovmo, 2007. "Public Sector Efficiency: The Roles of Political and Budgetary Institutions, Fiscal Capacity and Democratic Participation," Working Paper Series 8407, Department of Economics, Norwegian University of Science and Technology.
  4. Andreas Bergh & Christian Bjørnskov, 2011. "Historical Trust Levels Predict the Current Size of the Welfare State," Kyklos, Wiley Blackwell, vol. 64(1), pages 1-19, 02.
  5. Pierre Cahuc & Yann Algan, 2009. "Civic Virtue and Labor Market Institutions," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 111-45, January.
  6. Mina Baliamoune-Lutz, 2009. "Human Well-Being Effects Of Institutions And Social Capital," Contemporary Economic Policy, Western Economic Association International, vol. 27(1), pages 54-66, 01.
  7. Konstantinos Angelopoulos & Apostolis Philippopoulos & Efthymios Tsionas, 2008. "Does public sector efficiency matter? Revisiting the relation between fiscal size and economic growth in a world sample," Public Choice, Springer, vol. 137(1), pages 245-278, October.
  8. Doi, Takero & Ihori, Toshihiro, 2002. "Fiscal Reconstruction and Local Interest Groups in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 16(4), pages 492-511, December.
  9. Gokcekus, Omer, 2008. "Is it protestant tradition or current protestant population that affects corruption?," Economics Letters, Elsevier, vol. 99(1), pages 59-62, April.
  10. Sjoerd Beugelsdijk & Henri L.F. de Groot & Anton B.T.M. van Schaik, 2004. "Trust and economic growth: a robustness analysis," Oxford Economic Papers, Oxford University Press, vol. 56(1), pages 118-134, January.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Publishing information helps GDP: So there
    by Nicholas Gruen in Club Troppo on 2011-01-05 14:09:22
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Cited by:
  1. Yamamura, Eiji, 2011. "Groups and information disclosure: Olson and Putnam Hypotheses," MPRA Paper 34628, University Library of Munich, Germany.
  2. Yamamura, Eiji, 2012. "Effects of groups and government size on information disclosure," MPRA Paper 36141, University Library of Munich, Germany.

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