Does trust influence economic growth? Evidence from the Arab World
Abstract
This study examines the role trust is playing in promoting or hampering economic growth in the Arab world during the current times of uprisings and political upheaval. Using data from the 2010 – 2014 wave of the World Value Survey and employing various econometric specifications, we find a positive association between generalized trust and economic growth. This effect appears to be weaker in the Middle East and North Africa region compared to the rest of the world. A fall in public trust arising from uprisings can therefore have a dampening effect on the region's growth and economic development.