A Road to Trust
The authors explore the relationship between transaction costs and generalized trust. Using panel data from 2,100 households in 135 rural communities of the Philippines, the paper shows that where transaction costs are reduced (proxied by road construction), there is an increase in generalized trust. Consistent with the argument that generalized trust is built through repeated interactions, the authors find that the individuals most likely to engage in exchange exhibit an increase in trust after road construction. These results suggest that, rather than being an input to economic growth, trust might be a product of reduced transaction costs (which also favors growth).
| Main Authors: | , |
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| Format: | Policy Research Working Paper biblioteca |
| Language: | English |
| Published: |
World Bank, Washington, DC
2008-09
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| Subjects: | COLLECTIVE, COLLECTIVE ACTION, DEVELOPMENT PROJECT, DEVELOPMENT PROJECTS, ECONOMIC DEVELOPMENT, EQUALITY, ETHNIC DIVERSITY, FOUNDATIONS, HOUSEHOLD TRANSPORT, INDIVIDUALS, INTERNATIONAL BANK, INVESTIGATION, MUNICIPALITIES, MUNICIPALITY, PATHS, PERSONS, PROXY, RECONSTRUCTION, REHABILITATION, REPUTATION, ROAD, ROAD BUILDING, ROAD CONSTRUCTION, ROADS, RURAL COMMUNITIES, RURAL ROAD, RURAL ROAD CONSTRUCTION, RURAL ROADS, SOCIAL CAPITAL, SOCIAL DEVELOPMENT, SOCIAL NETWORKS, SOCIAL NORMS, SOCIETIES, SUSTAINABLE DEVELOPMENT, TRUSTS, WEALTH, |
| Online Access: | http://documents.worldbank.org/curated/en/2008/09/9813814/road-trust http://hdl.handle.net/10986/6772 |
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