Trust and Economic Growth: Conflicting Results between Cross-Sectional and Panel Analysis

Felix Roth ()

No 102, Ratio Working Papers from The Ratio Institute

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 (search for similar items in EconPapers)
JEL-codes: C23 E01 O40 Z13 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2006-08-30, Revised 2006-11-15
New Economics Papers: this item is included in nep-dev, nep-mac and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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