How Does Social Trust Affect Economic Growth?
This article connects two strands of the literature on social trust by directly estimating the effects of trust on growth through a set of potential transmission mechanisms. It does so by modeling the process using a 3SLS estimator on a sample of 85 countries for which a full data set is available. The results indicate that trust affects schooling and the rule of law directly, thereby raising economic growth rates. The article closes with a short discussion of the relevance of the findings.
Volume (Year): 78 (2012)
Issue (Month): 4 (April)
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