000K utf8 1100 $c2015 1500 eng 2050 urn:nbn:de:hbz:464-20160728-085210-3 3000 Dai, Shuanping 3010 Elsner, Wolfram 4000 Declining Trust in Growing China$dA Dilemma between Growth and Socio-Economic Damage [Dai, Shuanping] 4209 Declining general trust has become a serious social issue in China in recent years. This paper attempts to understand and analyze this social phenomenon from a social interaction perspective. Based on a repeated prisoners’ dilemma game on networks, it finds that the evolution of general trust is dependent on changes of the social interaction structure, and the increases of both social and spatial distance may explain a decrease of the levels of cooperation and general trust. In addition, we find that the traditional Chinese family and clan networks culture has an ambiguous effect on general trust, and simple reactive social “homing behavior” might be critical for China’s future economic development. In order to recover the general trust level, a major strategic option for China, and for fast growing countries in economic transition in general, is to (re-)develop appropriate network structures and properties, as our model indicates. 4950 https://nbn-resolving.org/urn:nbn:de:hbz:464-20160728-085210-3$xR$3Volltext$534 4961 https://duepublico2.uni-due.de/receive/duepublico_mods_00041060 5010 32 5051 320 5550 China JEL Classification 5550 Economic transition 5550 games on networks 5550 growth and development 5550 migration 5550 trust