Trust and Growth

14 Pages Posted: 19 Jul 2007

See all articles by Oguzhan C. Dincer

Oguzhan C. Dincer

Illinois State University - Department of Economics; Illinois State University-Institute for Corruption Studies

Eric M. Uslaner

University of Maryland, College Park; Institute for Corruption Studies

Date Written: July 2007

Abstract

Using data from US states, we find a positive relationship between trust and growth. According to our results, a 10 percentage point increase in trust increases the growth rate of per capita income by 0.5 percentage point, growth rate of housing prices by 1.25 percentage points, and the growth rate of employment by 2.5 percentage points over a decade.

Keywords: Trust, Economic Growth

JEL Classification: Z13, R11

Suggested Citation

Dincer, Oguzhan C. and Uslaner, Eric M., Trust and Growth (July 2007). FEEM Working Paper No. 73.2007, Available at SSRN: https://ssrn.com/abstract=999922 or http://dx.doi.org/10.2139/ssrn.999922

Oguzhan C. Dincer (Contact Author)

Illinois State University - Department of Economics ( email )

Normal, IL 61790-4200
United States

Illinois State University-Institute for Corruption Studies ( email )

Stevenson Hall 425
Normal, IL 61790-4200
United States

Eric M. Uslaner

University of Maryland, College Park ( email )

College Park, MD 20742
United States
+1301 405 4151 (Phone)
+1301 314 9690 (Fax)

Institute for Corruption Studies

Stevenson Hall 425
Normal, IL 61790-4200
United States

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