Can trust effects on development be generalized? A response by quantile

Jesús Peiró-Palomino () and Emili Tortosa-Ausina

No 2012/16, Working Papers from Economics Department, Universitat Jaume I, Castellón (Spain)

Abstract: While the beneficial effects of social trust on economic performance have been largely recognized, we analyze if these effects can be generalized for economies at different stages of economic development and for different time horizons. Contrary to previous studies on this issue based on average effects (mostly considering ordinary least squares estimations), we follow a quantile regression approach, which enables to capture heterogeneous effects of trust, which are dependent on the level of development. By considering data of 80 countries and using trust indicators from five different waves of the World Values Survey (WVS), our results by quantile indicate that high-growth processes are strongly influenced by the previous stock of trust available in the country, and that trust is less relevant for the poorest economies. This would suggest, not only that trust effects cannot be generalized for all countries, as some previous studies suggested, but also that the implications of trust for short and long term development actually differ.

Keywords: Trust; GDP per capita; economic growth; quantile regression (search for similar items in EconPapers)
JEL-codes: A13 Z13 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2012
New Economics Papers: this item is included in nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.doctreballeco.uji.es/wpficheros/peiro_tortosa2.pdf (application/pdf)

Related works:
Journal Article: Can trust effects on development be generalized? A response by quantile (2013)
Working Paper: Can Trust Effects on Development be Generalized? A Response by Quantile (2013)
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:jau:wpaper:2012/16

Access Statistics for this paper

More papers in Working Papers from Economics Department, Universitat Jaume I, Castellón (Spain) Contact information at EDIRC.
Bibliographic data for series maintained by María Aurora Garcia Gallego ().