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How Does Social Trust Affect Economic Growth?

Christian Bjørnskov

Aarhus University - Department of Economics and Business; Center for Political Studies

April 2, 2009

Aarhus Economics Working Paper No. 06-2

This paper connects two strands of the literature on social trust by estimating the effects of trust on growth through a set of potential transmission mechanisms directly. It does so by modelling the process using a three-stage least squares estimator on a sample of countries for which a full data set is available. The results indicate that trust affects schooling and the rule of law directly and thereby raises economic growth rates. The paper closes with a short discussion of the relevance of the findings.

Number of Pages in PDF File: 43

Keywords: Growth, Trust, Transmission mechanisms

JEL Classification: O10, N40, Z13

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Date posted: May 9, 2006 ; Last revised: August 7, 2014

Suggested Citation

Bjørnskov, Christian, How Does Social Trust Affect Economic Growth? (April 2, 2009). Aarhus Economics Working Paper No. 06-2. Available at SSRN: http://ssrn.com/abstract=900201 or http://dx.doi.org/10.2139/ssrn.900201

Contact Information

Christian Bjørnskov (Contact Author)
Aarhus University - Department of Economics and Business ( email )
Fuglesangs Allé 4
Aarhus V, DK-8210
Center for Political Studies
Landgreven 3
Copenhagen K, DK-1301
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