Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/123598
Authors: 
Asongu, Simplice A.
Kodila-Tedika, Oasis
Year of Publication: 
2013
Series/Report no.: 
AGDI Working Paper WP/13/024
Abstract: 
The paper extends Breggren et al. (2008, EE) on 'trust and growth: a shaky relationship” by incorporating recent developments in the trust-growth literature and using a robust methodological underpinning that accounts for the presence of outliers. The empirical evidence is based on 63 countries. Two main findings are established. Firstly, the substantially documented positive trust-growth nexus is broadly confirmed. Secondly, when initial levels of growth come into play in determining the relationship, only 0.25 and 0.90 quantiles confirm the positive nexus. The results suggest that the trust-growth nexus cannot be generalized for all countries as some previous studies have concluded. Accordingly, trust-growth policies should be contingent on existing levels of development and tailored differently across rich and poor countries.
Subjects: 
Trust
Growth
Conditional Effects
JEL: 
A13
O40
Z13
Document Type: 
Working Paper

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