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Is competition good for trust? Cross-country evidence using micro-data

  • Fischer, Justina A.V.

This paper empirically analyzes implications of market competition for generalized trust of about 80,000 individuals in about 60 countries. We find that competition amplifies the trust-generating effect of market integration for highly integrated individuals.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4R68N82-1/1/e54c5047b342459002cc1503cf00c910
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 100 (2008)
Issue (Month): 1 (July)
Pages: 56-59

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Handle: RePEc:eee:ecolet:v:100:y:2008:i:1:p:56-59
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. Alesina, Alberto F & La Ferrara, Eliana, 2000. "Who Trusts Others?," CEPR Discussion Papers 2646, C.E.P.R. Discussion Papers.
  2. Brandts Jordi & Riedl Arno & Winden Frans van, 2005. "Competition and Well-Being," Research Memorandum 033, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  3. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1251-88, November.
  4. Joseph Henrich & Robert Boyd & Samuel Bowles & Colin Camerer & Ernst Fehr & Herbert Gintis & Richard McElreath, 2001. "Cooperation, Reciprocity and Punishment in Fifteen Small-scale Societies," Working Papers 01-01-007, Santa Fe Institute.
  5. Berggren, Niclas & Jordahl, Henrik, 2005. "Free to Trust? Economic Freedom and Social Capital," Working Paper Series 2005:2, Uppsala University, Department of Economics.
  6. Hirschman, Albert O, 1982. "Rival Interpretations of Market Society: Civilizing, Destructive, or Feeble?," Journal of Economic Literature, American Economic Association, vol. 20(4), pages 1463-84, December.
  7. Huck, Steffen & Ruchala, Gabriele K. & Tyran, Jean-Robert, 2006. "Competition Fosters Trust," CEPR Discussion Papers 6009, C.E.P.R. Discussion Papers.
  8. Axel Dreher, 2006. "Does globalization affect growth? Evidence from a new index of globalization," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1091-1110.
  9. Christian Bjørnskov, 2007. "Determinants of generalized trust: A cross-country comparison," Public Choice, Springer, vol. 130(1), pages 1-21, January.
  10. Tullock, Gordon, 1985. "Adam Smith and the Prisoners' Dilemma," The Quarterly Journal of Economics, MIT Press, vol. 100(5), pages 1073-81, Supp..
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