Recent empirical work has shown that trust plays an important role in economic development. In this paper, we delve deeper into the mechanism behind that relationship. Specifically, we investigate the effect of trust on human and physical capital while controlling for the fact that the two types...

In this paper we examine linkages between social trust and economic development using, for the first time, a panel of data. We confirm earlier cross-sectional studies finding that trust is a significant factor in development and also show for the first time that trust significantly interacts...