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Trust and growth: a shaky relationship
The Ratio Institute, Stockholm, Sweden.
Department of Economics, Uppsala University, Uppsala, Sweden.
The Research Institute of Industrial Economics, Stockholm, Sweden; The Ratio Institute, Stockholm, Sweden.ORCID iD: 0000-0001-8857-6116
2008 (English)In: Empirical Economics, ISSN 0377-7332, E-ISSN 1435-8921, Vol. 35, no 2, p. 251-274Article in journal (Refereed) Published
Abstract [en]

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.

Place, publisher, year, edition, pages
Springer, 2008. Vol. 35, no 2, p. 251-274
Keywords [en]
trust, growth, robustness, social capital, outliers
National Category
Economics
Identifiers
URN: urn:nbn:se:oru:diva-72656DOI: 10.1007/s00181-007-0158-xISI: 000258958800003Scopus ID: 2-s2.0-51649106465OAI: oai:DiVA.org:oru-72656DiVA, id: diva2:1290871
Available from: 2019-02-21 Created: 2019-02-21 Last updated: 2019-02-22Bibliographically approved

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Jordahl, Henrik

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