tailieunhanh - The Effect of Social Trust and Economic Growth

The total investment required for the six corridors is Rp. 4,012 trillion. From this, it is expected that the Sumatra Corridor will receive Rp. 714 trillion (18% of total investment), Rp. 945 (24% of total investment) for the Kalimantan corridor, Rp. 1,290 trillion (32% of total investment) for the Java corridor, Rp. 309 trillion (8% of total investment) for the Sulawesi Corridor, Rp. 133 trillion (3% of total investment) for the Bali Nusa Tenggara Corridor and lastly Rp. 622 trillion (15% of total investment) for the Papua Kepulauan Maluku Corridor. See figure below. . | Aarhus School of Business Aarhus University Master of Science in International Economic Consulting Master Thesis The Effect of Social Trust and Economic Growth Author Lena Pfister Academic Supervisor Christian Bjornskov September 2010 Abstract In recent years social trust has gained in importance within social science especially in an economic growth context. The thesis examines social trust as a potential determinant of economic growth using a panel data set including 116 countries over a time span from 1950 until 2005. The findings suggest a strong association between social trust and economic growth and stay robust throughout a Jackknife exercise and an extreme bound analysis implying that it is unlikely that these results are driven by outliers or omitted variables. Reverse causation is ruled out by adopting an instrumental variable approach. Further findings suggest that the effect of social trust on economic performance depends however on the development level of the country. Moreover the analysis provides further evidence that human capital and legal quality are indirect links through which social trust has an economic effect. Finally the thesis gives insight on the individual characteristics of the respondents that answer the trust question in the affirmative. Index Index Index. Figures and 0 1 Overview of the Social Social trust and Direct effects of social trust on economic Indirect effects of social trust on economic Who trusts others .8 2 Methodology and Data Basic Random Logit 3 Econometric Social trust and economic Extreme Bound Instrumental Jackknife Divided 4 Transmission Human Legal 5 Determinants of

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