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Globalisation increased trust in northern and western Europe between 2002 and 2018

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  • Verhoeven, Loesje

    (UNU-MERIT, Maastricht University)

  • Ritzen, Jo

    (UNU-MERIT, Maastricht University)

Abstract

Institutional trust and interpersonal trust are supposedly threatened by globalisation. In a case study of twelve countries in Northern- and Western Europe, however, we show that the substantial globalisation of the first two decades of the 21st century has contributed to institutional trust and - less significant - to interpersonal trust. This relation is non-linear. The "usual suspects" of income inequality and diversity have decreased institutional and interpersonal trust. Only specific Government expenditures (education and culture) have contributed to trust, more so in combination with high quality of institutions. High trusting countries (compared to Austria) turn out to be: France, Germany, Sweden, Switzerland and the UK. The positive effect of globalization on trust is "carried" by the higher educated and those with higher incomes.

Suggested Citation

  • Verhoeven, Loesje & Ritzen, Jo, 2022. "Globalisation increased trust in northern and western Europe between 2002 and 2018," MERIT Working Papers 2022-005, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2022005
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    Cited by:

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    2. Muysken, Joan & Meijers, Huub, 2022. "Globalisation and financialisation in the Netherlands, 1995 - 2020," MERIT Working Papers 2022-006, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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    More about this item

    Keywords

    Globalisation; Social Cohesion; Institutional Trust; Interpersonal trust; Diversity; Inequality; Government Expenditure; Government Intervention;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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