Featured Research

from universities, journals, and other organizations

More interpersonal trust can have a significant impact on growth in developing countries

Date:
December 15, 2009
Source:
University of Gothenburg
Summary:
It has been claimed that interpersonal trust can play more of a role in how an economy develops than capital. Researchers now demonstrate that there is reason to believe that interpersonal trust is more important in countries with a weak legal system, and that the quality of the legal system plays more of a role in societies where there is less trust between people.

It has been claimed that interpersonal trust can play more of a role in how an economy develops than capital, as the complexity of business transactions increases. In a recent thesis from the School of Business, Economics and Law at the University of Gothenburg, researcher Pelle Ahlerup demonstrates that there is reason to believe that interpersonal trust is more important in countries with a weak legal system, and that the quality of the legal system plays more of a role in societies where there is less trust between people.

"My research shows that trust between people can replace poorly functioning social institutions and vice versa," says Ahlerup, an economics researcher at the School of Business, Economics and Law. "Projects that aim to increase interpersonal trust can have a major impact in poor countries where investors and the general public do not have access to a reliable legal system. This also means that countries with low levels of trust between people have more to gain from improving the quality of their legal system and other social institutions."

Previous research has shown that countries where people have greater trust in each other generally perform better in a number of areas and have higher growth figures. Similar results have been shown for the importance of the legal system and other social institutions -- countries with more reliable institutions generally have a higher standard of living.

"In my thesis, I adopt a different approach to previous studies when discussing the effects of access to social capital, and compare different countries," continues Ahlerup. "The results of my research can be used to increase our understanding of when trust plays a role and when it doesn't in terms of growth."

The thesis, which comprises five separate articles in the fields of institutional and political economics, also includes discussions of why there are such major differences between countries in terms of the number and size of different population groups and the consequences these can have; the impact of the strength of populations' national identity on how effectively states can be governed; and how and why natural catastrophes affect the risk of civil war.

The thesis has been successfully defended.

Thesis: Essays on Conflict, Institutions, and Ethnic Diversity


Story Source:

The above story is based on materials provided by University of Gothenburg. Note: Materials may be edited for content and length.


Cite This Page:

University of Gothenburg. "More interpersonal trust can have a significant impact on growth in developing countries." ScienceDaily. ScienceDaily, 15 December 2009. <www.sciencedaily.com/releases/2009/12/091215102107.htm>.
University of Gothenburg. (2009, December 15). More interpersonal trust can have a significant impact on growth in developing countries. ScienceDaily. Retrieved July 25, 2014 from www.sciencedaily.com/releases/2009/12/091215102107.htm
University of Gothenburg. "More interpersonal trust can have a significant impact on growth in developing countries." ScienceDaily. www.sciencedaily.com/releases/2009/12/091215102107.htm (accessed July 25, 2014).

Share This




More Science & Society News

Friday, July 25, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Virginia Governor Tours Tornado Aftermath

Virginia Governor Tours Tornado Aftermath

AP (July 25, 2014) Virginia Gov. Terry McAuliffe toured the Cherrystone Family Camping and RV Resort on the Chesapeake Bay today, a day after it was hit by a tornado. The storm claimed two lives and injured dozens of others. (July 25) Video provided by AP
Powered by NewsLook.com
Richard III's Car Park Burial Site Opens to Public

Richard III's Car Park Burial Site Opens to Public

AFP (July 25, 2014) Visitors will be able to look down from a glass walkway on the grave of King Richard III when a new centre opens in the English cathedral city of Leicester, where the infamous hunchback was found under a car park in 2012. Duration: 00:35 Video provided by AFP
Powered by NewsLook.com
Mobile App Gives Tour of Battle of Atlanta Sites

Mobile App Gives Tour of Battle of Atlanta Sites

AP (July 25, 2014) Emory University's Center for Digital Scholarship has launched a self-guided mobile tour app to coincide with the 150th anniversary of the Civil War's Battle of Atlanta. (July 25) Video provided by AP
Powered by NewsLook.com
University Quiz Implies Atheists Are Smarter Than Christians

University Quiz Implies Atheists Are Smarter Than Christians

Newsy (July 25, 2014) An online quiz from a required course at Ohio State is making waves for suggesting atheists are inherently smarter than Christians. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins