Can trust effects on development be generalized? A response by quantile
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Title
Can trust effects on development be generalized? A response by quantileDate
2013Publisher
ElsevierISSN
0176-2680; 1873-5703Bibliographic citation
European Journal of Political Economy Volume 32, December 2013, Pages 377–390Type
info:eu-repo/semantics/articlePublisher version
http://www.sciencedirect.com/science/article/pii/S0176268013000761Version
info:eu-repo/semantics/submittedVersionSubject
Abstract
While the beneficial effects of social trust on economic performance have been largely recognized, we analyze whether these effects can be generalized for economies at different stages of economic development. Contrary ... [+]
While the beneficial effects of social trust on economic performance have been largely recognized, we analyze whether these effects can be generalized for economies at different stages of economic development. Contrary to previous studies on this issue based on average effects (mostly considering ordinary least squares estimations), we follow a quantile regression approach that enables us to capture heterogeneous effects of trust for different development levels. By considering data for 80 countries, and using trust indicators from five different waves of the World Values Survey (WVS), our results by quantile indicate that trust is not relevant for the poorest economies, showing the existence of a social poverty trap. In addition, results suggest that the impact of trust on income decreases as an economy becomes richer. This would suggest not only that trust benefits cannot be generalized for all countries, as some previous studies have proposed, but also that the extent of its implications are heavily dependent on the level of development. [-]
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European Journal of Political Economy, 2013, Vol. 32Rights
Copyright © 2013 Elsevier B.V. All rights reserved.
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info:eu-repo/semantics/openAccess
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- ECO_Articles [693]