IDEAS home Printed from https://ideas.repec.org/p/osf/socarx/bjkpd.html
   My bibliography  Save this paper

The predicting abilities of social trust and good governance on economic crisis duration

Author

Listed:
  • Nguyen, Jessica
  • Dinh, Tue
  • Selart, Marcus

Abstract

In this paper, we uncover the relationships among social trust, corruption and the duration of economic crises. Our theoretical foundation is based on a collection of studies from different academic fields, especially political science, sociology and economics. We corroborate our arguments with both descriptive analysis and regression analysis of secondary data. Our dataset includes 11,364 observations distributed across 211 countries. The quantitative findings show that social trust is correlated with the duration of economic crises. Connecting our theoretical stance with the empirical evidence, we propose several possible explanations for the findings and provide both theoretical and practical implications.

Suggested Citation

  • Nguyen, Jessica & Dinh, Tue & Selart, Marcus, 2020. "The predicting abilities of social trust and good governance on economic crisis duration," SocArXiv bjkpd, Center for Open Science.
    • Handle: RePEc:osf:socarx:bjkpd
    DOI: 10.31219/osf.io/bjkpd
    as

    Download full text from publisher

    File URL: https://osf.io/download/5f21bc513208050243151efa/
    Download Restriction: no
    File URL: https://libkey.io/10.31219/osf.io/bjkpd?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rafael Di Tella & Robert J. MacCulloch & Andrew J. Oswald, 2003. "The Macroeconomics of Happiness," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 809-827, November.
    2. Raphael, Steven & Winter-Ember, Rudolf, 2001. "Identifying the Effect of Unemployment on Crime," Journal of Law and Economics, University of Chicago Press, vol. 44(1), pages 259-283, April.
    3. Patrick Sachweh, 2018. "Conditional Solidarity: Social Class, Experiences of the Economic Crisis, and Welfare Attitudes in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(1), pages 47-76, August.
    4. Hashimzade, Nigar & Myles, Gareth & Black, John, 2017. "A Dictionary of Economics," OUP Catalogue, Oxford University Press, edition 5, number 9780198759430.
    5. Graf Lambsdorff, Johann, 2015. "Preventing corruption by promoting trust: Insights from behavioral science," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-69-15, University of Passau, Faculty of Business and Economics.
    6. Ernst R. Berndt & Jack E. Triplett, 1991. "Introduction to "Fifty Years of Economic Measurement: The Jubilee of the Conference on Research in Income and Wealth"," NBER Chapters, in: Fifty Years of Economic Measurement: The Jubilee of the Conference on Research in Income and Wealth, pages 1-2, National Bureau of Economic Research, Inc.
    7. Dix Carneiro,Rafael & Kovak,Brian K., 2015. "Trade reform and regional dynamics : evidence from 25 years of Brazilian matched employer-employee data," Policy Research Working Paper Series 7205, The World Bank.
    8. Rafael Di Tella & Robert MacCulloch, 2009. "Why Doesn't Capitalism Flow to Poor Countries?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 40(1 (Spring), pages 285-332.
    9. Mr. Luc Laeven & Mr. Fabian Valencia, 2018. "Systemic Banking Crises Revisited," IMF Working Papers 2018/206, International Monetary Fund.
    10. Peter Graeff & Gert Svendsen, 2013. "Trust and corruption: The influence of positive and negative social capital on the economic development in the European Union," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(5), pages 2829-2846, August.
    11. Wu, Ximing & Perloff, Jeffrey M. & Golan, Amos, 2002. "Effects of Government Policies on Income Distribution and Welfare," CUDARE Working Papers 25031, University of California, Berkeley, Department of Agricultural and Resource Economics.
    12. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Varieties of Crises and Their Dates," Introductory Chapters, in: This Time Is Different: Eight Centuries of Financial Folly, Princeton University Press.
    13. Yekaterina Chzhen, 2016. "Perceptions of the Economic Crisis in Europe: Do Adults in Households with Children Feel a Greater Impact?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(1), pages 341-360, May.
    14. Paul Collier & Benedikt Goderis, 2007. "Commodity Prices, Growth, and the Natural Resource Curse: Reconciling a Conundrum," CSAE Working Paper Series 2007-15, Centre for the Study of African Economies, University of Oxford.
    15. Robinson, James A. & Torvik, Ragnar & Verdier, Thierry, 2006. "Political foundations of the resource curse," Journal of Development Economics, Elsevier, vol. 79(2), pages 447-468, April.
    16. Boix, Carles & Posner, Daniel N., 1998. "Social Capital: Explaining Its Origins and Effects on Government Performance," British Journal of Political Science, Cambridge University Press, vol. 28(4), pages 686-693, October.
    17. Antje Mertens & Miriam Beblo, 2016. "Self-Reported Satisfaction and the Economic Crisis of 2007–2010: Or How People in the UK and Germany Perceive a Severe Cyclical Downturn," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(2), pages 537-565, January.
    18. Rafael Dix-Carneiro & Rodrigo R. Soares & Gabriel Ulyssea, 2018. "Economic Shocks and Crime: Evidence from the Brazilian Trade Liberalization," American Economic Journal: Applied Economics, American Economic Association, vol. 10(4), pages 158-195, October.
    19. Thomas, Vinod & Wang, Yan & Fan, Xibo, 2001. "Measuring education inequality - Gini coefficients of education," Policy Research Working Paper Series 2525, The World Bank.
    20. Deng, Wen-Shuenn & Lin, Yi-Chen & Gong, Jinguo, 2012. "A smooth coefficient quantile regression approach to the social capital–economic growth nexus," Economic Modelling, Elsevier, vol. 29(2), pages 185-197.
    21. Checchi, Daniele, 2001. "Education, inequality and income inequality," LSE Research Online Documents on Economics 6566, London School of Economics and Political Science, LSE Library.
    22. Raymond Fisman & Edward Miguel, 2010. "Economic Gangsters: Corruption, Violence, and the Poverty of Nations," Economics Books, Princeton University Press, edition 1, number 9170.
    23. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    24. Marjolein Jeene & Wim Oorschot & Wilfred Uunk, 2014. "The Dynamics of Welfare Opinions in Changing Economic, Institutional and Political Contexts: An Empirical Analysis of Dutch Deservingness Opinions, 1975–2006," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 115(2), pages 731-749, January.
    25. Janine LESCHKE & Maria JEPSEN, 2012. "Introduction: Crisis, policy responses and widening inequalities in the EU," International Labour Review, International Labour Organization, vol. 151(4), pages 289-312, December.
    26. Christian Bjørnskov, 2012. "How Does Social Trust Affect Economic Growth?," Southern Economic Journal, John Wiley & Sons, vol. 78(4), pages 1346-1368, April.
    27. Ming-Jen Lin, 2008. "Does Unemployment Increase Crime?: Evidence from U.S. Data 1974–2000," Journal of Human Resources, University of Wisconsin Press, vol. 43(2), pages 413-436.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nguyen, Jessica & Dinh, Tue & Selart, Marcus, 2020. "The predicting abilities of social trust and good governance on economic crisis duration," SocArXiv bjkpd_v1, Center for Open Science.
    2. Nguyen, Jessica & Dihn, Tue & Selart, Marcus, 2024. "The predicting abilities of social trust and good governance on economic crisis duration," SocArXiv 4vfw7_v1, Center for Open Science.
    3. Smith, Brock, 2015. "The resource curse exorcised: Evidence from a panel of countries," Journal of Development Economics, Elsevier, vol. 116(C), pages 57-73.
    4. Jeffrey Frankel, 2012. "The Natural Resource Curse: A Survey of Diagnoses and Some Prescriptions," Growth Lab Working Papers 36, Harvard's Growth Lab.
    5. Kaznacheev, Peter, 2013. "Resource Rents and Economic Growth: Economic and institutional development in countries with a high share of income from the sale of natural resources. Analysis and recommendations based on internatio," EconStor Research Reports 121950, ZBW - Leibniz Information Centre for Economics.
    6. Kolstad, Ivar & Søreide, Tina, 2009. "Corruption in natural resource management: Implications for policy makers," Resources Policy, Elsevier, vol. 34(4), pages 214-226, December.
    7. Collier, Paul & Hoeffler, Anke, 2009. "Testing the neocon agenda: Democracy in resource-rich societies," European Economic Review, Elsevier, vol. 53(3), pages 293-308, April.
    8. Evelyn Dietsche, 2017. "Political economy and governance," WIDER Working Paper Series 024, World Institute for Development Economic Research (UNU-WIDER).
    9. El Anshasy, Amany A. & Katsaiti, Marina-Selini, 2013. "Natural resources and fiscal performance: Does good governance matter?," Journal of Macroeconomics, Elsevier, vol. 37(C), pages 285-298.
    10. Brahmbhatt, Milan & Canuto, Otaviano & Vostroknutova, Ekaterina, 2010. "Dealing with Dutch Disease," World Bank - Economic Premise, The World Bank, issue 16, pages 1-7, June.
    11. Alesina, Alberto & Di Tella, Rafael & MacCulloch, Robert, 2004. "Inequality and happiness: are Europeans and Americans different?," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2009-2042, August.
    12. Augustin Kwasi Fosu, 2011. "Terms of Trade and Growth of Resource Economies: A Tale of Two Countries," CSAE Working Paper Series 2011-09, Centre for the Study of African Economies, University of Oxford.
    13. Bhattacharyya, Sambit & Hodler, Roland, 2010. "Natural resources, democracy and corruption," European Economic Review, Elsevier, vol. 54(4), pages 608-621, May.
    14. Kolstad, Ivar & Wiig, Arne, 2012. "Testing The Pearl Hypothesis: Natural resources and trust," Resources Policy, Elsevier, vol. 37(3), pages 358-367.
    15. Al-Kasim, Farouk & Søreide, Tina & Williams, Aled, 2013. "Corruption and reduced oil production: An additional resource curse factor?," Energy Policy, Elsevier, vol. 54(C), pages 137-147.
    16. Salim M. Araji & Hamid Mohtadi, 2018. "Natural resources, incentives and human capital: reinterpreting the curse," Middle East Development Journal, Taylor & Francis Journals, vol. 10(1), pages 1-30, January.
    17. Magaly Faride Herrera Giraldo & Carlos Giovanni González Espitia, 2022. "Understanding the Spatial Relationship Between the Informal Labor Market and Violent Crime in Cali, Colombia," Icesi Economics Working Papers 20344, Universidad Icesi.
    18. Frankel, Jeffrey A., 2010. "The Natural Resource Curse: A Survey," Scholarly Articles 4454156, Harvard Kennedy School of Government.
    19. Francesco Caselli & Guy Michaels, 2013. "Do Oil Windfalls Improve Living Standards? Evidence from Brazil," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 208-238, January.
    20. Benedikt Goderis & Samuel W. Malone, 2011. "Natural Resource Booms and Inequality: Theory and Evidence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113, pages 388-417, June.

    More about this item

    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:osf:socarx:bjkpd. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: OSF (email available below). General contact details of provider: https://arabixiv.org .

    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.