Trade, Social Values, and the Generalized Trust
The present paper investigates, empirically, whether global economic integration can lead to national social disintegration, as proclaimed by Rodrik. One can perhaps conjecture that a drop in the generalized trust in a country may signal a rise in social disintegration. Using the survey data on the generalized trust provided by the World Values Surveys, the present paper finds that, in general, there is a positive openness–trust relationship. However, when globalization undermines domestic income distribution, it will weaken this openness–trust relationship. There is also evidence of a threshold inequality above which the openness–trust relationship turns negative.
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Volume (Year): 73 (2007)
Issue (Month): 3 (January)
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