Trust and Economic Growth: Conflicting Results between Cross-Sectional and Panel Analysis

This paper examines the relationship between trust and economic growth. With the help of panel data I conclude that economic growth is negatively related to an increase in trust. My result is contrary to works taking a cross section design in which trust is positively related to growth. The relationship is tested in the context of EU countries, OECD countries, transition countries and developing countries. Interpersonal trust and systemic trust is differentiated.

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Year of publication:	2006-08-30
Authors:	Roth, Felix
Institutions:	Ratioinstitutet
Subject:	Social Capital \| Trust \| Economic Growth \| Panel Analyis

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Extent:	application/pdf
Series:	Ratio Working Papers.
Type of publication:	Book / Working Paper
Notes:	Forthcoming in Kyklos. The text is part of a series Ratio Working Papers Number 102 22 pages
Classification:	C23 - Models with Panel Data ; E01 - Measurement and Data on National Income and Product Accounts and Wealth ; O40 - Economic Growth and Aggregate Productivity. General ; Z13 - Social Norms and Social Capital
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005642437