How Does Social Trust Affect Economic Growth?

Southern Economic Journal, 2012, vol. 78, issue 4, 1346-1368

Abstract: This article connects two strands of the literature on social trust by directly estimating the effects of trust on growth through a set of potential transmission mechanisms. It does so by modeling the process using a 3SLS estimator on a sample of 85 countries for which a full data set is available. The results indicate that trust affects schooling and the rule of law directly, thereby raising economic growth rates. The article closes with a short discussion of the relevance of the findings.

Date: 2012
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Citations: View citations in EconPapers (29)

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https://doi.org/10.4284/0038-4038-78.4.1346

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Working Paper: How Does Social Trust Affect Economic Growth? (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:soecon:v:78:y:2012:i:4:p:1346-1368

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