Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/188230 
Year of Publication: 
2015
Citation: 
[Journal:] Pakistan Journal of Commerce and Social Sciences (PJCSS) [ISSN:] 2309-8619 [Volume:] 9 [Issue:] 3 [Publisher:] Johar Education Society, Pakistan (JESPK) [Place:] Lahore [Year:] 2015 [Pages:] 916-927
Publisher: 
Johar Education Society, Pakistan (JESPK), Lahore
Abstract: 
Trust among individuals of a society is an important dimension of social capital and may have different economic and development implications. The present study is an attempt to investigate the relationship of trust with economic growth and human development. It is unique in at least two different aspects. Firstly, it has used an index for quantifying trust which may be more comprehensive measure as compared with already used measures of trust by different research studies. The index has been constructed by taking into account different variables related with interpersonal safety and trust. Both perception-based as well as actionable indicators have been used in the construction of the index which adds to its reliability and usefulness. Secondly, the study has used paneldata for a large set of countries of the world. Panel-data framework has certain advantages over cross-country regression. Coverage of our data-set for large number of countries of the world also adds to the authenticity of our analysis. Our findings suggest that trust is not significantly associated with economic growth. However, it shows a positive and significant effect on human development. Hence, instead of having direct effect on economic growth, trust may affect economic growth indirectly through its positive effects on human development. The study will be helpful in enhancing the understanding regarding the role of trust in determining economic growth and human development.
Subjects: 
trust
economic growth
human development
social capital
informal institutions
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

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