Globalisation increased trust in northern and western Europe between 2002 and 2018

Loesje Verhoeven () and Jo Ritzen ()
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Loesje Verhoeven: UNU-MERIT, Maastricht University
Jo Ritzen: UNU-MERIT, Maastricht University

No 2022-005, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

Abstract: Institutional trust and interpersonal trust are supposedly threatened by globalisation. In a case study of twelve countries in Northern- and Western Europe, however, we show that the substantial globalisation of the first two decades of the 21st century has contributed to institutional trust and - less significant - to interpersonal trust. This relation is non-linear. The "usual suspects" of income inequality and diversity have decreased institutional and interpersonal trust. Only specific Government expenditures (education and culture) have contributed to trust, more so in combination with high quality of institutions. High trusting countries (compared to Austria) turn out to be: France, Germany, Sweden, Switzerland and the UK. The positive effect of globalization on trust is "carried" by the higher educated and those with higher incomes.

Keywords: Globalisation; Social Cohesion; Institutional Trust; Interpersonal trust; Diversity; Inequality; Government Expenditure; Government Intervention (search for similar items in EconPapers)
JEL-codes: D31 D78 E61 F15 F68 H5 O24 O52 (search for similar items in EconPapers)
Date: 2022-02-01
New Economics Papers: this item is included in nep-eec, nep-int, nep-mac and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2022005

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