Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81149
Authors: 
Berggren, Niclas
Elinder, Mikael
Jordahl, Henrik
Year of Publication: 
2007
Series/Report no.: 
IFN Working Paper 705
Abstract: 
We conduct an extensive robustness analysis of the relationship between trust and growth by investigating a later time period and a bigger sample than in previous studies. In addition to robustness tests that focus on model uncertainty, we systematize the investigation of outlier influence on the results by using the robust estimation technique Least Trimmed Squares. We find that when outliers (especially China) are removed, the trust-growth relationship is no longer robust. On average, the trust coefficient is half as large as in previous findings.
Subjects: 
Trust
Growth
Robustness
Social Capital
Outliers
JEL: 
O40
Z13
Document Type: 
Working Paper

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