28 April 2020
Download [893 KB PDF]This working paper was produced by Kōtātā Insight for and with the support of the Productivity Commission. It explores what is known about the relationship between trust and total factor productivity. The aim is threefold:
The first two questions are addressed through a literature review focusing on empirical quantitative analyses of the relationship between trust and income, economic growth, or productivity. This review summarises what is known about the magnitude of the relationship between trust, incomes, growth, and productivity and then discusses the causal pathways associated with the impact of trust.
The third question makes use of data from the European Social Survey to estimate the size of coefficient for trust on tfp and illustrates what this implies for OECD countries via a counter-factual example where all OECD countries are assumed to have the same levels of interpersonal trust.
Our research aims to understand New Zealand's productivity performance and the role of policy in lifting productivity.
Explore our publications below, hear us present at an event or contact us with your productivity questions.
The goal of our research is to facilitate a move from an economy that grows by using more “inputs” (such as labour or natural resources), to one where productivity plays a greater role in driving economic growth – essentially, working smarter, with greater financial and knowledge capital employed per worker.
Our research explores a wide range of productivity issues: employment, firm dynamics, technology diffusion, innovation, regional development, spatial and public-sector productivity.
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