Globalisation increased trust in northern and western Europe between 2002 and 2018
Loesje Verhoeven & Jo Ritzen
#2022-005
Institutional trust and interpersonal trust are supposedly threatened by
globalisation. In a case study of twelve countries in Northern- and
Western Europe, however, we show that the substantial globalisation of
the first two decades of the 21st century has contributed to
institutional trust and - less significant - to interpersonal trust.
This relation is non-linear. The "usual suspects" of income inequality
and diversity have decreased institutional and interpersonal trust. Only
specific Government expenditures (education and culture) have
contributed to trust, more so in combination with high quality of
institutions. High trusting countries (compared to Austria) turn out to
be: France, Germany, Sweden, Switzerland and the UK. The positive effect
of globalization on trust is "carried" by the higher educated and those
with higher incomes.
Keywords: Globalisation, Social Cohesion, Institutional Trust,
Interpersonal trust, Diversity, Inequality, Government Expenditure,
Government Intervention
JEL Classification: F15, F68, D31, D78, E61, H5, O24, O52
