Trade, social values, and the generalized trust
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Related Research Unit(s)
|Number of pages||21|
|Journal / Publication||Southern Economic Journal|
|Publication status||Published - Jan 2007|
|Link to Scopus||https://www.scopus.com/record/display.uri?eid=2-s2.0-33847719428&origin=recordpage|
The present paper investigates, empirically, whether global economic integration can lead to national social disintegration, as proclaimed by Rodrik. One can perhaps conjecture that a drop in the generalized trust in a country may signal a rise in social disintegration. Using the survey data on the generalized trust provided by the World Values Surveys, the present paper finds that, in general, there is a positive openness-trust relationship. However, when globalization undermines domestic income distribution, it will weaken this openness-trust relationship. There is also evidence of a threshold inequality above which the openness-trust relationship turns negative.