IDEAS home Printed from https://ideas.repec.org/p/ags/usazwp/239264.html
   My bibliography  Save this paper

Trust, Governance, and Growth: Exploring the Interplay

Author

Listed:
  • Bower, Thomas R.
  • Wilson, Paul N.

Abstract

Thin trust and efficacious governance are well-established contributors to economic progress but the interplay between these factors and their joint impact on human flourishing is unclear. We extend previous analyses by expanding the cross-sectional data set to over 100 countries and by employing simultaneous models to capture the interplay between trust, governance and economic growth. We find that in this interdependent system framework that (1) the effect of trust on growth is greater than shown in earlier analyses, (2) trust and governance are complementary components that under adverse circumstances can lead to a low-growth trust trap for some societies, (3) income inequality and fractionalization play important, intermediary roles in explaining levels of trust, governance, and ultimately, economic welfare, and (4) the colonization legacy of each country captures an important component of the current variation across countries in regard to their levels of trust, governance, and economic growth.

Suggested Citation

  • Bower, Thomas R. & Wilson, Paul N., 2016. "Trust, Governance, and Growth: Exploring the Interplay," Working Papers 239264, University of Arizona, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:usazwp:239264
    DOI: 10.22004/ag.econ.239264
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/239264/files/trust_governance_growth.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.239264?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Institutional and Behavioral Economics; International Development;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:usazwp:239264. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/dauazus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.