Response with 250 words each. Response 1Intergovernmenta.docx
Trust and Institutions
1. Particularized and Generalized Trust: The Indirect Relationship of Trust on Economic Development Saqer Al-Khalifa Claremont Graduate University Saqer.al-khalifa@cgu.edu
2. Question How important is Trust or Networks in a society?Does it matter if one society has more trust than another?
3. dilemma Institutional adjustments in developing world are withheld because of fear from political spillover. Thus, rejection to such shifts is at the expense of the economic wellbeing.
4. Neoclassical Growth Models Eventually growth to reach steady state because of diminishing returns to capital. Blamed exogenous factors when predictions and explanations did not match. Theorists argued technology and institutions continuously develop and prevent decrease in growth. The growth models developed when critical non-economic factors were included.
5. The process of democratization Conflicting arguments with regards to the relationship between democracy and economics. Democracy & Autocracy: Two faces of a coin. Roving versus stationary bandit. Mancur Olson (1993) Politics in democracies is two edged sword. Boix (1999), Bueno De Mesquita et al. (2005)
18. Cooperate Defect Parallel Analogy 3,3 0,5 Cooperate X 6 Defect 0,5 1,1 Conclusion: Rational individuals in a society act selfish and therefore cooperate to maximize self-gain.
19. Theory Individual Level Particularized Trust Institutions Generalized Trust Particularized Trust Institutions Economic Wellbeing National Level Generalized Trust
20. Hypothesis P.T. Institutions G.T. H1: An increase in Particularized Trust is associated with an Increase in Generalized Trust, mediated by institutions.
21. Hypothesis P.T. Institutions (Individual) P.T. Institutions (National) H2: At both the individual and national level, an increase in Particularized leads to a positive change in formal institutions.
23. Methodology:Casual Steps Approach Introduced by Baron and Kenny (1986) IV DV = Significant when mediator not included IV Mediator = Significant Mediator DV = Significant when IV included (given absolute value of IV here is less than absolute value in #1)
29. Ending Remarks Results falsify literature that argue Institutions effect Economic Development through ‘trust’. Increase in trusting people you know or know something about is vital for economic development. Shifts in domestic and foreign policy: Ex. Instead of establishing new institutions, invest in increasing Particularized Trust in societies.
37. Goals How to approach foreign and domestic policies that care for societal development without threatening the stability of governance.
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Editor's Notes
It is important here to understand that when attempting to explain a certain phenomenon, one should not limit himself to the prism at hand. Thus, I am attempting to explain….
Boix: democracies not efficient if they lack the proper institutions that constrain leaders from altering the system.
Boix: democracies not efficient if they lack the proper institutions that constrain leaders from altering the system.
Boix: democracies not efficient if they lack the proper institutions that constrain leaders from altering the system.
