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Trust as the missing root of institutions, education, and development

  • Christian Bjørnskov
  • Pierre-Guillaume Méon

In the paper, we argue that trust is the missing link relating education, institutions, and economic development. We argue that increased trust both increases education and improves legal and bureaucratic institutions, which in turn spurs economic development. We substantiate this intuition with a series of regressions that show that trust determines both education and the quality of institutions, and that education and institutions in turn affect GDP per capita.

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Paper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers CEB with number 12-031.

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Length: 34 p.
Date of creation: 24 Oct 2012
Date of revision:
Publication status: Published by:
Handle: RePEc:sol:wpaper:2013/130489
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