Political trust and economic development in European regions
Jonathan Muringani,
Rune Fitjar and
Andrés Rodríguez-Pose
LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library
Abstract:
This paper examines the complex relationship between political and social trust, government quality, and economic development across 208 regions in the European Union (EU). We use a pooled data generalized structural equation model (GSEM) to show that political trust serves as a fundamental driver of regional economic development in the EU. Political trust is, in turn, influenced by both social trust and government quality. Social trust and government quality have quadratic effects on political trust, showing diminishing returns, while the effect of political trust on economic development is linear. Political trust mediates the relationship between social trust and economic development entirely, while government quality retains a direct relationship with economic development. These findings underscore the fundamental role that political trust plays as a mechanism through which both formal and informal institutions shape regional development.
Keywords: political trust; social trust; quality of government; regional economic development; EU (search for similar items in EconPapers)
JEL-codes: D73 H11 R11 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2024-12-31
New Economics Papers: this item is included in nep-eec, nep-geo, nep-pol, nep-soc and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:
Published in Annals of Regional Science, 31, December, 2024, 73(4), pp. 2059 - 2089. ISSN: 0570-1864
Downloads: (external link)
http://eprints.lse.ac.uk/125630/ Open access version. (application/pdf)
Related works:
Journal Article: Political trust and economic development in European regions (2024) 
Working Paper: Political trust and economic development in European regions (2024) 
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:125630
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