Abstract:
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.
