Felix Roth: University of Göttingen
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.
22 pages, First version: August 30, 2006. Revised: November 15, 2006. Earlier revisions: November 15, 2006.
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