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Does social trust speed up reforms?: The case of central-bank independence
Res Inst Ind Econ IFN, Stockholm, Sweden.;Univ Econ, Dept Inst Environm & Expt Econ KIE, Prague, Czech Republic..
Dalarna University, School of Technology and Business Studies, Economics. HUI Res, Stockholm, Sweden.;Dalarna Univ, Dept Econ, Borlange, Sweden..
Umea Univ, Umea Sch Business & Econ, Umea, Sweden..
2016 (English)In: Journal of Institutional Economics, ISSN 1744-1374, E-ISSN 1744-1382, Vol. 12, no 2, p. 395-415Article in journal (Refereed) Published
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Abstract [en]

Many countries have undertaken central-bank independence reforms, but the years of implementation differ. What explains such differences in timing? This is of interest more broadly, as it sheds light on factors that matter for the speed at which economic reforms come about. We study a rich set of potential determinants, both economic and political, but put special focus on a cultural factor, i.e. social trust. We find empirical support for an inverse u-shape: Countries with low and high social trust implemented their reforms earlier than countries with intermediate levels. We make use of two factors to explain this pattern: the need to undertake reform (which is more urgent in countries with low social trust) and the ability to undertake reform (which is greater in countries with high social trust). Overall, our findings imply that culture matters for institutional change.

Place, publisher, year, edition, pages
2016. Vol. 12, no 2, p. 395-415
National Category
Economics and Business
Research subject
Research Profiles 2009-2020, Complex Systems – Microdata Analysis
Identifiers
URN: urn:nbn:se:du-22553DOI: 10.1017/S1744137415000284ISI: 000377461700007Scopus ID: 2-s2.0-84937250030OAI: oai:DiVA.org:du-22553DiVA, id: diva2:945492
Available from: 2016-07-01 Created: 2016-07-01 Last updated: 2021-11-12Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • chicago-author-date
  • chicago-note-bibliography
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf