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The virtuous loop of quality of government (QoG) and institutional trust in OECD countries, 2006-2021 and culture

Author

Listed:
  • Hussain, Ahmed
  • Ritzen, Jo

    (Maastricht Graduate School of Governance, RS: GSBE MGSoG, RS: UNU-MERIT Theme 3)

Abstract

We explore empirically the relationship between trust in government and the quality of government (QoG) with a dynamic panel model for the period 2006-2021 in the 38 OECD countries, with reverse and lag specifications while incorporating a range of social, political, and economic factors as explanatory variables. The results show a clear positive mutually reinforcing dynamic between QoG and trust in government when the social, political and economic factors are included. Trust in government with a three-year lag is positively related to QoG. Foreign-born population with a three-year lag is negatively associated with QoG. The other way around: trust in government is affected by the QoG in the same year. Economic decline reduces trust in government. QoG and trust appear to be embedded in culture (measured with the Hofstede indices). Power distance is negatively related to both QoG and institutional trust. The association between individualism and QoG is positive, while long-term orientation and indulgence positively impact trust.

Suggested Citation

  • Hussain, Ahmed & Ritzen, Jo, 2023. "The virtuous loop of quality of government (QoG) and institutional trust in OECD countries, 2006-2021 and culture," MERIT Working Papers 2023-029, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2023029
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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • 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
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy
    • Z19 - Other Special Topics - - Cultural Economics - - - Other

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