Trade, Social Values, and the Generalized Trust

Kenneth Chan

Southern Economic Journal, 2007, vol. 73, issue 3, 733-753

Abstract: The present paper investigates, empirically, whether global economic integration can lead to national social disintegration, as proclaimed by Rodrik. One can perhaps conjecture that a drop in the generalized trust in a country may signal a rise in social disintegration. Using the survey data on the generalized trust provided by the World Values Surveys, the present paper finds that, in general, there is a positive openness‐trust relationship. However, when globalization undermines domestic income distribution, it will weaken this openness‐trust relationship. There is also evidence of a threshold inequality above which the openness‐trust relationship turns negative.

Date: 2007
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https://doi.org/10.1002/j.2325-8012.2007.tb00799.x

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Persistent link: https://EconPapers.repec.org/RePEc:wly:soecon:v:73:y:2007:i:3:p:733-753

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