Arbeitspapier

Trust institutions, perceptions of economic performance and the mitigating role of political diversity

Several previous studies have explored the nexus between trust and socio-economic conditions but do not attempt to examine channels through which the relation operates. In this paper, we examine how political fractionalization mitigates the positive relationship between trust institutions and national economic performance in Africa. Using Round 7 data of Afrobarometer in over 1000 districts in 34 countries, we find that trust institutions positively and significantly affect economic performance. Nevertheless, the positive effect is attenuated in districts with a high level of political diversity. More specifically, a higher level of trust is associated with lower economic performance at a higher level of political fractionalization and vice versa, with a steady linear decrease of the estimated coefficients. Policy implications are discussed.

Sprache
Englisch

Erschienen in
Series: AGDI Working Paper ; No. WP/22/056

Klassifikation
Wirtschaft
Law and Economics: General
Economic Development: General
Capitalist Systems: Political Economy
Other Economic Systems: Public Economics; Financial Economics
Comparative Economic Systems: General
Thema
Trust institutions
economic performance
political diversity

Ereignis
Geistige Schöpfung
(wer)
Diop, Samba
Asongu, Simplice
Ereignis
Veröffentlichung
(wer)
African Governance and Development Institute (AGDI)
(wo)
Yaoundé
(wann)
2022

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Diop, Samba
  • Asongu, Simplice
  • African Governance and Development Institute (AGDI)

Entstanden

  • 2022

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