IDEAS home Printed from https://ideas.repec.org/a/ove/journl/aid19806.html
   My bibliography  Save this article

A note on institutional trust and poverty: evidence from Latin America

Author

Listed:
  • Edgar Demetrio Tovar-García

Abstract

This short paper argues that institutional trust should be considered as an additional factor influencing poverty at the macroeconomic level. By examining a sample of Latin American countries and analyzing annual data from 1995 to 2019 using panel data techniques such as cointegration analysis and panel fully modified least squares, this study estimates the long-term relationships between poverty, economic growth, inequality, and institutional trust. As hypothesized, the empirical evidence suggests that institutional trust also reduces poverty. These findings hold particular significance for Latin America, where inequality levels are relatively high, institutional trust is low, and poverty rates have only recently begun to decline. Therefore, to alleviate poverty, it is crucial to implement public policies that restore and enhance institutional trust.

Suggested Citation

  • Edgar Demetrio Tovar-García, 2023. "A note on institutional trust and poverty: evidence from Latin America," Economics and Business Letters, Oviedo University Press, vol. 12(4), pages 313-320.
  • Handle: RePEc:ove:journl:aid:19806
    as

    Download full text from publisher

    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/19806
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Keefer, Philip & Scartascini, Carlos, 2022. "Trust: The Key to Social Cohesion and Growth in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 11771.
    2. Appiah-Otoo, Isaac & Chen, Xudong & Song, Na & Dumor, Koffi, 2022. "Financial development, institutional improvement, poverty reduction: The multiple challenges in West Africa," Journal of Policy Modeling, Elsevier, vol. 44(6), pages 1296-1312.
    3. Esa Mangeloja & Tomi Ovaska & Ryo Takashima, 2022. "Entrepreneurial choices depend on trust: Some global evidence," Journal of International Entrepreneurship, Springer, vol. 20(4), pages 564-590, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kasyanenko,Sergiy & Kenworthy,Philip George & Ruch,Franz Ulrich & Vashakmadze,Ekaterine T. & Vorisek,Dana Lauren & Wheeler,Collette Mari, 2023. "Investment in Emerging Market and Developing Economy Regions : Trends, Prospects, and Policy Options," Policy Research Working Paper Series 10369, The World Bank.
    2. Guizzo Altube, Matías & Scartascini, Carlos & Tommasi, Mariano, 2023. "The Political Economy of Redistribution and (in)Efficiency in Latin America and the Caribbean," IDB Publications (Working Papers) 13194, Inter-American Development Bank.
    3. Kasyanenko,Sergiy & Kenworthy,Philip George & Kilic Celik,Sinem & Ruch,Franz Ulrich & Vashakmadze,Ekaterine T. & Wheeler,Collette Mari, 2023. "The Past and Future of RegionalPotential Growth : Hopes, Fears, and Realities," Policy Research Working Paper Series 10368, The World Bank.
    4. Ardanaz, Martin & Otálvaro-Ramírez, Susana & Scartascini, Carlos, 2023. "Does information about citizen participation initiatives increase political trust?," World Development, Elsevier, vol. 162(C).
    5. Appiah-Otoo, Isaac & Chen, Xudong & Ampah, Jeffrey Dankwa, 2023. "Does financial structure affect renewable energy consumption? Evidence from G20 countries," Energy, Elsevier, vol. 272(C).
    6. Rocco Macchiavello, 2022. "Relational Contracts and Development," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 337-362, August.
    7. Domínguez, Patricio & Scartascini, Carlos, 2022. "Willingness to pay for crime reduction: evidence from six countries in the Americas," IDB Publications (Working Papers) 12488, Inter-American Development Bank.
    8. Vlaicu, Razvan, 2024. "Inequality Persistence and Policymaking Constraints: Explaining Regional Data Patterns," IDB Publications (Working Papers) 13546, Inter-American Development Bank.
    9. Ardanaz, Martín & Otálvaro-Ramírez, Susana & Scartascini, Carlos, 2022. "Does Citizen Participation in Budget Allocation Pay? A Survey Experiment on Political Trust and Participatory Governance," IDB Publications (Working Papers) 12256, Inter-American Development Bank.
    10. Xiaoyu Zhang, 2024. "Sustainable development in African countries: evidence from the impacts of education and poverty ratio," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-8, December.
    11. Zhenhua Zhang & Chao Hua & Marshall S. Jiang & Jianjun Miao, 2024. "The spatial spillover effect of financial growth on high-quality development: Evidence from Yellow River Basin in China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-17, December.
    12. Pecorari,Natalia Gisel & Cuesta Leiva,Jose Antonio, 2023. "Citizen Participation and Political Trust in Latin America and the Caribbean : AMachine Learning Approach," Policy Research Working Paper Series 10335, The World Bank.
    13. Busso, Matias & Ibáñez, Ana María & Messina, Julián & Quigua, Juliana, 2023. "Preferences for redistribution in Latin America," LSE Research Online Documents on Economics 120687, London School of Economics and Political Science, LSE Library.
    14. Fambeu, Ariel Herbert & Yomi, Patricia Tchawa, 2023. "Is democracy pro poor in Sub-Saharan Africa?," Journal of Policy Modeling, Elsevier, vol. 45(1), pages 10-30.
    15. Borzino, Natalia & Fatas, Enrique & Peterle, Emmanuel, 2023. "In transparency we trust an experimental study of reputation, transparency, and signaling," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 106(C).
    16. Domínguez, Patricio & Scartascini, Carlos, 2024. "Willingness to pay for crime reduction: The role of information in the Americas," Journal of Public Economics, Elsevier, vol. 239(C).
    17. Mariano Tommasi, 2023. "Latin America and the Caribbean in the first quarter of the 21st century. What should be reformed, what can be reformed, and how to think about it?," Working Papers 170, Universidad de San Andres, Departamento de Economia, revised Jul 2024.
    18. Pham, Thi Ha An & Lin, Chia-Yang & Moslehpour, Massoud & Vo, Thi Thuy Van & Nguyen, Hai-Tuan & Nguyen, Tran Thai Ha, 2024. "What role financial development and resource-curse situation play in inclusive growth of Asian countries," Resources Policy, Elsevier, vol. 88(C).
    19. Bonvecchi, Alejandro & Calvo, Ernesto & Otálvaro-Ramírez, Susana & Scartascini, Carlos, 2022. "The Effect of a Crisis on Trust and Willingness to Reform: Evidence from Survey Panels in Argentina and Uruguay," IDB Publications (Working Papers) 12359, Inter-American Development Bank.
    20. Hummera Saleem & Muhammad Bilal Khan & Seyed Mohammadreza Mahdavian & Umar Nawaz Kayani, 2024. "The role of technological innovation, economic policy uncertainty, and poverty reduction in attaining environmental sustainability agenda: contextual evidence from developing South and East Asian Econ," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(12), pages 30563-30597, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ove:journl:aid:19806. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Francisco J. Delgado (email available below). General contact details of provider: https://edirc.repec.org/data/deovies.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.