The productivity of trust
AbstractThis paper returns to one of the early questions of the literature on social trust, whether trust affects total factor productivity (TFP). Using both development and growth accounting, we find strong evidence of a causal effect of trust on the level and growth of TFP. Using a three-stage least-squares procedure, we moreover observe that the effect of trust on TFP runs entirely through property-rights institutions and not political institutions. Those findings resist a series of robustness checks.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers CEB with number 10-042.
Length: 77 p.
Date of creation: Aug 2010
Date of revision:
Publication status: Published by:
Contact details of provider:
Postal: CP114/03, 42 avenue F.D. Roosevelt, 1050 Bruxelles
Phone: +32 (0)2 650.48.64
Fax: +32 (0)2 650.41.88
Web page: http://difusion.ulb.ac.be
More information through EDIRC
Total factor productivity; Social trust;
Find related papers by JEL classification:
- 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-2010-09-11 (All new papers)
- NEP-EFF-2010-09-11 (Efficiency & Productivity)
- NEP-EVO-2010-09-11 (Evolutionary Economics)
- NEP-POL-2010-09-11 (Positive Political Economics)
- NEP-SOC-2010-09-11 (Social Norms & Social Capital)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Friedrich Heinemann & Benjamin Tanz, 2008.
"The impact of trust on reforms,"
Journal of Economic Policy Reform,
Taylor and Francis Journals, vol. 11(3), pages 173-185.
- Berggren, Niclas & Elinder, Mikael, 2010.
"Is Tolerance Good or Bad for Growth?,"
Ratio Working Papers
155, The Ratio Institute.
- Berggren, Niclas & Elinder, Mikael, 2010. "Is tolerance good or bad for growth?," Working Paper Series, Center for Fiscal Studies 2010:8, Uppsala University, Department of Economics.
- Berggren, Niclas & Elinder, Mikael, 2010. "Is tolerance good or bad for growth?," Working Paper Series 2010:13, Uppsala University, Department of Economics.
- Berggren, Niclas & Elinder, Mikael, 2010. "Is Tolerance Good or Bad for Growth?," Working Paper Series 846, Research Institute of Industrial Economics.
- Abu-Qarn, Aamer S. & Abu-Bader, Suleiman, 2007. "Sources of Growth Revisited: Evidence from Selected MENA Countries," World Development, Elsevier, vol. 35(5), pages 752-771, May.
- Berggren, Niclas & Jordahl, Henrik, 2005.
"Free to Trust? Economic Freedom and Social Capital,"
Working Paper Series
2005:2, Uppsala University, Department of Economics.
- Niclas Berggren & Henrik Jordahl, 2006. "Free to Trust: Economic Freedom and Social Capital," Kyklos, Wiley Blackwell, vol. 59(2), pages 141-169, 05.
- Berggren, Niclas & Jordahl, Henrik, 2005. "Free to Trust? Economic Freedom and Social Capital," Ratio Working Papers 64, The Ratio Institute.
- Berggren, Niclas & Bergh, Andreas & Bjørnskov, Christian, 2009.
"The growth effects of institutional instability,"
2009:8, Lund University, Department of Economics.
- Sjoerd Beugelsdijk & Henri L.F. de Groot & Anton B.T.M. van Schaik, 2002. "Trust and Economic Growth," Tinbergen Institute Discussion Papers 02-049/3, Tinbergen Institute.
- Sjoerd Beugelsdijk, 2006. "A note on the theory and measurement of trust in explaining differences in economic growth," Cambridge Journal of Economics, Oxford University Press, vol. 30(3), pages 371-387, May.
- Lassen, David Dreyer, 2007. "Ethnic divisions, trust, and the size of the informal sector," Journal of Economic Behavior & Organization, Elsevier, vol. 63(3), pages 423-438, July.
- Dearmon, Jacob & Grier, Kevin, 2009. "Trust and development," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 210-220, August.
- Kodila-Tedika, Oasis & Agbor Agbor, Julius, 2012. "Does Trust Matter For Entrepreuneurship : Evidence From A Cross-Section Of Countries," MPRA Paper 42292, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Benoit Pauwels).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.