Trust and Growth: A Shaky Relationship

Arbeitspapier

We conduct an extensive robustness analysis of the relationship between trust and growth by investigating a later time period and a bigger sample than in previous studies. In addition to robustness tests that focus on model uncertainty, we systematize the investigation of outlier influence on the results by using the robust estimation technique Least Trimmed Squares. We find that when outliers (especially China) are removed, the trust-growth relationship is no longer robust. On average, the trust coefficient is half as large as in previous findings.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFN Working Paper ; No. 705

Classification and Topics

• Classification: Wirtschaft ; Economic Growth and Aggregate Productivity: General ; Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
• Subject: Trust ; Growth ; Robustness ; Social Capital ; Outliers ; Vertrauen ; Wirtschaftswachstum ; Social Capital ; Schätzung ; Robustes Verfahren

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Berggren, Niclas ; Elinder, Mikael ; Jordahl, Henrik
• Event: Veröffentlichung
• (who): Research Institute of Industrial Economics (IFN)
• (where): Stockholm
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/81149
• Last update: 10.03.2025, 11:45 AM CET