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Does globalization suppress social trust?

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  • Berggren, Niclas
  • Bjørnskov, Christian

Abstract

Globalization has been on the increase during the past 50 years, and there are now signs of a backlash. Part of the reason may be the widely held belief that globalization is harmful, not least for the cultural fabric. Is that the case? We investigate whether globalization has suppressed social trust, arguably one of the most beneficial characteristics of people in a society. By using a sample of first- and second-generation immigrants in 33 primarily European countries, we apply the epidemiological method to rule out reverse causality; and by using the KOF Index of Globalization, we study effects of economic, social and political globalization separately. We find that especially social globalization, and to some extent economic globalization, are positively related to social trust, with a small effect size, while political globalization is largely unrelated to it. Overall, this indicates that globalization does not pose a danger for social trust – at least not for people with a migration background. If anything, people seem to become slightly more trusting with more globalization.

Suggested Citation

  • Berggren, Niclas & Bjørnskov, Christian, 2023. "Does globalization suppress social trust?," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 443-458.
    • Handle: RePEc:eee:jeborg:v:214:y:2023:i:c:p:443-458
    DOI: 10.1016/j.jebo.2023.08.018
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    More about this item

    Keywords

    Globalization; Openness; Trade; Institutions; Culture; Trust;
    All these keywords.

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • F10 - International Economics - - Trade - - - General
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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