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Trust and economic growth: Is there a relation?
https://doi.org/10.32609/0042-8736-2020-10-68-82
Abstract
We study the relation between trust and economic growth. We explore the history of the topic and conduct empirical analysis using all the available data from the World Values Survey and the European Values Study, including data for the recent years. We show that results of the classic models that establish positive relation between trust and economic growth do not replicate on the most recent data. Moreover, neither use of alternative indicators of trust, nor dividing the countries into the groups depending on institutional quality yields to the appearance of relation. We discuss possible reasons for the absence of relation between trust and economic growth in the recent years, in particular, the changing role of trust in the modern world, and point to the importance of more detailed exploration of the mechanisms of relation between trust and economic growth.
About the Authors
E. I. Borisova
National Research University Higher School of Economics
Russian Federation
Russian Federation
Ekaterina I. Borisova
Moscow
V. A. Bryzgalin
Institute for National Projects;
Lomonosov Moscow State University
Russian Federation
Russian Federation
Viktor A. Bryzgalin
Moscow
I. A. Levina
National Research University Higher School of Economics
Russian Federation
Russian Federation
Irina A. Levina
Moscow
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For citations:
Borisova E.I., Bryzgalin V.A., Levina I.A. Trust and economic growth: Is there a relation? Voprosy Ekonomiki. 2020;(10):68-82. (In Russ.) https://doi.org/10.32609/0042-8736-2020-10-68-82
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