We conduct an extensive robustness analysis of the relationship between trust and growth by investigating a later time period and a bigger sample than in previous studies. In addition to robustness tests that focus on model uncertainty, we systematize the investigation of outlier inﬂuence on the results by using the robust estimation technique Least Trimmed Squares. We ﬁnd that when outliers (especially China) are removed, the trust-growth relationship is no longer robust. On average, the trust coefﬁcient is half as large as in previous ﬁndings.
Trust and Growth: A Shaky Relationship
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