Trust as a catalyst for regional growth in a decentralized Europe: The interplay between informal and formal institutions in driving economic growth

Jonathan Muringani

Journal of Regional Science, 2022, vol. 62, issue 5, 1229-1249

Abstract: Empirical studies examining the interplay between informal and formal institutions on economic growth are scarce. As a result, we do not know how differences in trust affect the economic returns of the quality of regional governments and their autonomy. A panel regression analysis of 208 regions in 21 EU countries shows that informal and formal institutions matter for economic growth, individually and in combination. More specifically, trust substitutes the quality of regional government but does not affect the economic impact of its degree of decentralization. Therefore, policymakers need to think creatively about harnessing institutions to promote economic growth.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://doi.org/10.1111/jors.12594

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jregsc:v:62:y:2022:i:5:p:1229-1249

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0022-4146

Access Statistics for this article

Journal of Regional Science is currently edited by Marlon G. Boarnet, Matthew Kahn and Mark D. Partridge

More articles in Journal of Regional Science from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().