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The Economic Payoffs of Trust: An Empirical Investigation from Developing Countries Robust to Jackknife Coefficient Distribution

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  • Abdul Jalil

    () (Quaid-i-Azam University)

  • Iffat Rabab

    (Quaid-i-Azam University)

Abstract

Abstract This article investigates the linkages between trust and economic development of developing countries. For this purpose, the study uses the data of five waves of World Value Survey from 1981 to 2008. The findings of this article clearly show that trust is a significant factor to explain economic growth of selected countries. Specifically, the estimates provide convincing results on the positive association of trust with economic growth of developing countries. Furthermore, we run Jackknife experiments on main regression for providing robustness analysis. We report that the coefficients of trust and interaction term are very tightly distributed and not highly sample dependent.

Suggested Citation

  • Abdul Jalil & Iffat Rabab, 2017. "The Economic Payoffs of Trust: An Empirical Investigation from Developing Countries Robust to Jackknife Coefficient Distribution," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(3), pages 1121-1144, April.
  • Handle: RePEc:spr:soinre:v:131:y:2017:i:3:d:10.1007_s11205-016-1281-x
    DOI: 10.1007/s11205-016-1281-x
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    Keywords

    Economic payoffs; Trust; Jackknife estimators;

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