suggest. Trust between trading partners lowers transaction costs and may therefore enhance trade. The empirical analysis of … this paper shows that more trust leads to more trade so that part of the mystery of missing trade can be attributed to the … lack of trust between trading partners, e.g. because of cultural differences and habits, or because of insufficient …

paper, Knack and Keefer (1997) assess the effect of trust on growth. This paper analyses the robustness of their results … the relationship between trust and growth in terms of both the size and the significance of the estimated effect, is … highly dependent on the set of conditioning variables. An answer to the question whether there is an economic payoff of trust …

This survey reviews the recent research on trust, institutions and growth. It discusses the various measures of trust … and documents the substantial heterogeneity of trust across space and time. The conceptual mechanisms and the methods … employed to identify the causal impact of trust on economic performance are reviewed. We document the mechanisms of …

High levels of social trust has been linked to both public sector size and long term economic growth, thereby helping … examines if social trust as a background factor also insulates countries against negative effects of public sector size on … insulating effects. Instead we find robust evidence that high trust aggravates the crowding out effects of public sector size on …