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Globalization and political trust

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  • Fischer, Justina AV
Abstract
This paper postulates that a country’s integration into the world economy may lower citizens’ political trust. I argue that economic globalization constrains government’s choice set of feasible policies, impeding responsiveness to the median voter. Matching individual-level survey data from 1981 to 2007, repeated cross-sections of altogether 260’000 persons from 80 countries, with a measure of a country’s degree of economic globalization for the same time period, I find that there is a trust-lowering impact of globalization; its magnitude, however, depends on whether or not the individual is informed about politics and the economy. Trust-lowering effects of globalization are larger for those who have no interest in politics, are unwilling to indicate their political leaning, or who have low educational levels. Two-stage least squares regressions and a set of country and time fixed effects support a causal interpretation. Obviously, viewing the domestic government as accountable for its policies plays a decisive role for the relation between economic globalization and political trust. Robustness against country’s degree of economic development, past globalization and different time periods is tested.

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  • Fischer, Justina AV, 2012. "Globalization and political trust," MPRA Paper 37763, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:37763
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    Cited by:

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    2. Fischer, Justina A.V., 2013. "The Cyprus crisis in the mirror: the ‘small deposit tax’ as historical faux-pas," MPRA Paper 45652, University Library of Munich, Germany.
    3. Fischer, Justina AV & Aydıner-Avşar, Nursel, 2015. "Are women in the MENA region really that different from women in Europe? Globalization, conservative values and female labor market participation," MPRA Paper 63800, University Library of Munich, Germany.
    4. Vrolijk, Kasper, 2023. "How does globalisation affect social cohesion?," IDOS Discussion Papers 5/2023, German Institute of Development and Sustainability (IDOS).
    5. Verhoeven, Loesje & Ritzen, Jo, 2022. "Globalisation increased trust in northern and western Europe between 2002 and 2018," MERIT Working Papers 2022-005, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Fischer, Justina A.V., 2012. "The choice of domestic policies in a globalized economy," Papers 306, World Trade Institute.
    7. Fischer, Justina A.V., 2012. "The choice of domestic policies in a globalized economy: Extended Version," MPRA Paper 37816, University Library of Munich, Germany.

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    More about this item

    Keywords

    Political trust; globalization; international trade; openness; FDI; World Values Survey;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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