Ratio Working Papers
Trust and Economic Growth: Conflicting Results between Cross-Sectional and Panel Analysis
Abstract: 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.
Keywords: Social Capital; Trust; Economic Growth; Panel Analyis; (follow links to similar papers)
JEL-Codes: C23; E01; O40; Z13; (follow links to similar papers)
22 pages, August 30, 2006, Revised November 15, 2006
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- This paper is forthcoming as:
Roth, Felix, 'Trust and Economic Growth: Conflicting Results between Cross-Sectional and Panel Analysis', Kyklos.
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