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Does Trust Influence Economic Growth? Evidence from the Arab World

Author

Listed:
  • Kamal Kasmaoui

    (Pau Business School)

  • Mazhar Mughal

    (Pau Business School)

  • Jamal Bouoiyour

    (University of Pau and Pays de l'Adour)

Abstract

This study examines the role trust is playing in promoting or hampering economic growth in the Arab world during the current times of uprisings and political upheaval. Using data from the 2010 – 2014 wave of the World Value Survey and employing various econometric specifications, we find a positive association between generalized trust and economic growth. This effect appears to be weaker in the Middle East and North Africa region compared to the rest of the world. A fall in public trust arising from uprisings can therefore have a dampening effect on the region's growth and economic development.

Suggested Citation

  • Kamal Kasmaoui & Mazhar Mughal & Jamal Bouoiyour, 2018. "Does Trust Influence Economic Growth? Evidence from the Arab World," Economics Bulletin, AccessEcon, vol. 38(2), pages 880-891.
    • Handle: RePEc:ebl:ecbull:eb-17-00956
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    References listed on IDEAS

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    Cited by:

    1. Mohammed N. Abu Alfoul & Ibrahim N. Khatatbeh & Ayman Hassan Bazhair, 2024. "The Effect of ICT Usage on Economic Growth in the MENA Region: Does the Level of Education Matter?," Economies, MDPI, vol. 12(10), pages 1-18, October.
    2. Klára Katona, 2020. "Is Lack of Morality an Explanation for the Economic and Financial Crisis? A Catholic Point of View," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 26(4), pages 407-418, November.
    3. Badaoui, Eliane, 2023. "Which dimensions of religiosity matter for trust? New insights from the MENA region," World Development, Elsevier, vol. 167(C).
    4. Mahmoud Arayssi & Ali Fakih & Nathir Haimoun, 2019. "Did the Arab Spring reduce MENA countries’ growth?," Applied Economics Letters, Taylor & Francis Journals, vol. 26(19), pages 1579-1585, November.
    5. Rania S. Miniesy & Mariam AbdelKarim, 2021. "Generalized Trust and Economic Growth: The Nexus in MENA Countries," Economies, MDPI, vol. 9(1), pages 1-22, March.
    6. Bougharriou, Nouha & Benayed, Walid & Gabsi, Foued Badr, 2022. "Democratic transition and fiscal policy in the Arab world," Economic Systems, Elsevier, vol. 46(2).
    7. Kamal Kasmaoui & Farid Makhlouf & Youssef Errami, 2020. "Does Trust in Home Countries Matter for Formal Remittances?," Working Papers hal-02886563, HAL.
    8. Kamal Kasmaoui & Farid Makhlouf & Refk Selmi, 2023. "The decision to remit is a matter of interpersonal trust," Economics Bulletin, AccessEcon, vol. 43(2), pages 733-747.

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    More about this item

    Keywords

    Trust; Economic Growth; MENA region; Social capital;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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