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Simplice Asongu and Rangan Gupta
''Trust and quality of growth: a note''
( 2016, Vol. 36 No.3 )
The transition from Millennium Development Goals (MDGs) to Sustainable Development Goals (SDGs) has substantially shifted the policy debate from growth to inclusive growth. In this short note, we revisit the trust-growth nexus by exploiting a dataset on quality of growth (QG), recently made available to the scientific community. The empirical evidence is based on interactive contemporary and non-contemporary quantile regressions. Inequality and human development modifying variables are used as additional controls. The findings broadly support the positive role of trust in QG. In addition, relatively high thresholds of inequality are needed to change this positive trust-QG nexus in some distributions. The dominant shape from the influence of inclusive/human development is Kuznets or inverted U-shape: the return of inclusive/human development in the trust-QG nexus is decreasing in the bottom half of the QG distributions. As a main policy implication, decreasing (increasing) inequality (human development) would improve the positive trust-QG nexus in countries with low levels of QG.
Keywords: Trust; Inclusive Growth; Conditional Effects
JEL: O1 - Economic Development: General
I3 - Welfare and Poverty: General
Manuscript Received : May 20 2016 Manuscript Accepted : Sep 30 2016

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