IDEAS home Printed from https://ideas.repec.org/p/unm/unumer/2022005.html
   My bibliography  Save this paper

Globalisation increased trust in northern and western Europe between 2002 and 2018

Author

Listed:
  • Verhoeven, Loesje

    (UNU-MERIT, Maastricht University)

  • Ritzen, Jo

    (UNU-MERIT, Maastricht University)

Abstract

Institutional trust and interpersonal trust are supposedly threatened by globalisation. In a case study of twelve countries in Northern- and Western Europe, however, we show that the substantial globalisation of the first two decades of the 21st century has contributed to institutional trust and - less significant - to interpersonal trust. This relation is non-linear. The "usual suspects" of income inequality and diversity have decreased institutional and interpersonal trust. Only specific Government expenditures (education and culture) have contributed to trust, more so in combination with high quality of institutions. High trusting countries (compared to Austria) turn out to be: France, Germany, Sweden, Switzerland and the UK. The positive effect of globalization on trust is "carried" by the higher educated and those with higher incomes.

Suggested Citation

  • Verhoeven, Loesje & Ritzen, Jo, 2022. "Globalisation increased trust in northern and western Europe between 2002 and 2018," MERIT Working Papers 2022-005, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2022005
    as

    Download full text from publisher

    File URL: https://www.merit.unu.edu/publications/wppdf/2022/wp2022-005.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andr�s Rodr�guez-Pose & Enrique Garcilazo, 2015. "Quality of Government and the Returns of Investment: Examining the Impact of Cohesion Expenditure in European Regions," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1274-1290, August.
    2. Fischer, Justina A.V., 2012. "Globalization and Political Trust," Papers 285, World Trade Institute.
    3. van Staveren, I.P. & Pervaiz, Z. & Chaudhary, A.R., 2013. "Diversity, Inclusiveness and Social Cohesion," ISD Working Paper Series 2013-1, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    4. Philipp Heimberger, 2020. "Does economic globalisation affect income inequality? A meta‐analysis," The World Economy, Wiley Blackwell, vol. 43(11), pages 2960-2982, November.
    5. John Carter, 2007. "An Empirical Note on Economic Freedom and Income Inequality," Public Choice, Springer, vol. 130(1), pages 163-177, January.
    6. Bergh, Andreas & Nilsson, Therese, 2010. "Do liberalization and globalization increase income inequality?," European Journal of Political Economy, Elsevier, vol. 26(4), pages 488-505, December.
    7. Grechyna, Daryna, 2016. "On the determinants of political polarization," Economics Letters, Elsevier, vol. 144(C), pages 10-14.
    8. Enrico Santarelli & Jacopo Staccioli & Marco Vivarelli, 2023. "Automation and related technologies: a mapping of the new knowledge base," The Journal of Technology Transfer, Springer, vol. 48(2), pages 779-813, April.
    9. Boarini, Romina & Causa, Orsetta & Fleurbaey, Marc & Grimalda, Gianluca & Woolard, Ingrid, 2018. "Reducing inequalities and strengthening social cohesion through inclusive growth: A roadmap for action," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 12, pages 1-26.
    10. Sule Alan & Ceren Baysan & Mert Gumren & Elif Kubilay, 2021. "Building Social Cohesion in Ethnically Mixed Schools: An Intervention on Perspective Taking," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(4), pages 2147-2194.
    11. Gianmarco I.P. Ottaviano & Giovanni Peri, 2021. "The economic value of cultural diversity: evidence from US cities," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 7, pages 187-222, World Scientific Publishing Co. Pte. Ltd..
    12. Harpal Sangha & Robert Riegler, 2020. "Can globalisation promote female labour force participation?," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 19(3), pages 303-322, July.
    13. Neutel, Marcel & Heshmati, Almas, 2006. "Globalisation, Inequality and Poverty Relationships: A Cross Country Evidence," IZA Discussion Papers 2223, Institute of Labor Economics (IZA).
    14. Wu, Shih-Ying & Tang, Jenn-Hong & Lin, Eric S., 2010. "The impact of government expenditure on economic growth: How sensitive to the level of development?," Journal of Policy Modeling, Elsevier, vol. 32(6), pages 804-817, November.
    15. Edward Anderson & Samuel Obeng, 2021. "Globalisation and government spending: Evidence for the ‘hyper‐globalisation’ of the 1990s and 2000s," The World Economy, Wiley Blackwell, vol. 44(5), pages 1144-1176, May.
    16. William Easterly & Jozef Ritzen & Michael Woolcock, 2006. "Social Cohesion, Institutions, And Growth," Economics and Politics, Wiley Blackwell, vol. 18(2), pages 103-120, July.
    17. José Villaverde & Adolfo Maza, 2011. "Globalisation, Growth and Convergence," The World Economy, Wiley Blackwell, vol. 34(6), pages 952-971, June.
    18. Wilkinson, R.G., 1997. "Comment: income, inequality, and social cohesion," American Journal of Public Health, American Public Health Association, vol. 87(9), pages 1504-1506.
    19. Davis, Donald, 1996. "Trade Liberalization And Income Distribution," Harvard Institute for International Development (HIID) Papers 294371, Harvard University, Kennedy School of Government.
    20. Niklas Potrafke, 2015. "The Evidence on Globalisation," The World Economy, Wiley Blackwell, vol. 38(3), pages 509-552, March.
    21. Donald R. Davis, 1996. "Trade Liberalization and Income Distribution," Harvard Institute of Economic Research Working Papers 1769, Harvard - Institute of Economic Research.
    22. Markus Knell & Helmut Stix, 2021. "Inequality, perception biases and trust," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(4), pages 801-824, December.
    23. Easton, David, 1975. "A Re-assessment of the Concept of Political Support," British Journal of Political Science, Cambridge University Press, vol. 5(4), pages 435-457, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Walle, Yabibal Mulualem, 2022. "Determinants of social cohesion: Cross-country evidence," IDOS Discussion Papers 18/2022, German Institute of Development and Sustainability (IDOS).
    2. Muysken, Joan & Meijers, Huub, 2022. "Globalisation and financialisation in the Netherlands, 1995 - 2020," MERIT Working Papers 2022-006, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    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. Renato Santiago & José Alberto Fuinhas & António Cardoso Marques, 2020. "The impact of globalization and economic freedom on economic growth: the case of the Latin America and Caribbean countries," Economic Change and Restructuring, Springer, vol. 53(1), pages 61-85, February.
    2. Walle, Yabibal Mulualem, 2022. "Determinants of social cohesion: Cross-country evidence," IDOS Discussion Papers 18/2022, German Institute of Development and Sustainability (IDOS).
    3. Kutuk, Yasin, 2022. "Inequality convergence: A world-systems theory approach," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 150-165.
    4. Berggren, Niclas & Nilsson, Therese, 2015. "Globalization and the transmission of social values: The case of tolerance," Journal of Comparative Economics, Elsevier, vol. 43(2), pages 371-389.
    5. Pleninger, Regina & Sturm, Jan-Egbert, 2020. "The effects of economic globalisation and ethnic fractionalisation on redistribution," World Development, Elsevier, vol. 130(C).
    6. Zheng, Mingbo & Feng, Gen-Fu & Feng, Suling & Yuan, Xuemei, 2019. "The road to innovation vs. the role of globalization: A dynamic quantile investigation," Economic Modelling, Elsevier, vol. 83(C), pages 65-83.
    7. Guerriero, Marta & Sen, Kunal, 2012. "What Determines the Share of Labour in National Income? A Cross-Country Analysis," IZA Discussion Papers 6643, Institute of Labor Economics (IZA).
    8. Jianchun Fang & Giray Gozgor & Cheng Yan, 2021. "Does globalisation alleviate polarisation?," The World Economy, Wiley Blackwell, vol. 44(4), pages 1031-1052, April.
    9. repec:ilo:ilowps:366690 is not listed on IDEAS
    10. Niklas Potrafke, 2016. "Policies against human trafficking: the role of religion and political institutions," Economics of Governance, Springer, vol. 17(4), pages 353-386, November.
    11. Gerring, John & Thacker, Strom C. & Lu, Yuan & Huang, Wei, 2015. "Does Diversity Impair Human Development? A Multi-Level Test of the Diversity Debit Hypothesis," World Development, Elsevier, vol. 66(C), pages 166-188.
    12. Caruso Raul & Antonella Biscione, 2022. "Militarization and Income Inequality in European Countries (2000–2017)," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 28(3), pages 267-285, September.
    13. Julien Gourdon, 2011. "Wage inequality in developing countries: South–South trade matters," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(4), pages 359-383, December.
    14. Aziz N. Berdiev & Brandon Gomes & James W. Saunoris, 2023. "Revisiting the nexus between globalisation and the shadow economy: Untying the influences of de jure versus de facto globalisation," The World Economy, Wiley Blackwell, vol. 46(1), pages 27-54, January.
    15. Niclas Berggren & Therese Nilsson, 2013. "Does Economic Freedom Foster Tolerance?," Kyklos, Wiley Blackwell, vol. 66(2), pages 177-207, May.
    16. Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
    17. Jamie Bologna & Joshua C. Hall, 2014. "Economic Freedom Research: Some Comments and Suggestions," Working Papers 14-23, Department of Economics, West Virginia University.
    18. Chiara Binelli, 2008. "Returns to Education and Increasing Wage Inequality in Latin America," Working Paper series 30_08, Rimini Centre for Economic Analysis.
    19. Sampson, Thomas, 2016. "Assignment reversals: Trade, skill allocation and wage inequality," Journal of Economic Theory, Elsevier, vol. 163(C), pages 365-409.
    20. Ferreira, Cândida, 2020. "Globalisation and Economic Growth: A Panel Data Approach," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 73(2), pages 187-236.
    21. Chiquiar, Daniel, 2008. "Globalization, regional wage differentials and the Stolper-Samuelson Theorem: Evidence from Mexico," Journal of International Economics, Elsevier, vol. 74(1), pages 70-93, January.

    More about this item

    Keywords

    Globalisation; Social Cohesion; Institutional Trust; Interpersonal trust; Diversity; Inequality; Government Expenditure; Government Intervention;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:unm:unumer:2022005. 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: Ad Notten (email available below). General contact details of provider: https://edirc.repec.org/data/meritnl.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.