Trust and Quality of Growth: A Note

Economics Bulletin, 36(3), A181, pp. 1854-1867 (September, 2016).

9 Pages Posted: 27 Jun 2015 Last revised: 2 Oct 2016

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Rangan Gupta

University of Pretoria - Department of Economics

Date Written: June 26, 2015

Abstract

The transition from Millennium Development Goals (MDGs) to Sustainable Development Goals (SDGs) has substantially shifted the policy debate from growth to inclusive growth. In this short note, we revisit the trust-growth nexus by exploiting a dataset on quality of growth (QG), recently made available to the scientific community. The empirical evidence is based on interactive contemporary and non-contemporary quantile regressions. Inequality and human development modifying variables are used as additional controls. The findings broadly support the positive role of trust in QG. In addition, relatively high thresholds of inequality are needed to change this positive trust-QG nexus in some distributions.

Keywords: Trust; Inclusive Growth; Conditional Effects

JEL Classification: A13; I30; O40; Z13

Suggested Citation

Asongu, Simplice and Gupta, Rangan, Trust and Quality of Growth: A Note (June 26, 2015). Economics Bulletin, 36(3), A181, pp. 1854-1867 (September, 2016).. Available at SSRN: https://ssrn.com/abstract=2623489 or http://dx.doi.org/10.2139/ssrn.2623489

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Rangan Gupta

University of Pretoria - Department of Economics ( email )

Lynnwood Road
Hillcrest
Pretoria, 0002
South Africa

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