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Does market participation promote generalized trust? Experimental evidence from Southern Africa

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  • Siziba, Shephard
  • Bulte, Erwin

Abstract

Does market participation promote generalized morality and trust, as postulated by some recent theories? We use experimental data from Zimbabwe and Mozambique to probe into one specific component of this question, and find evidence to the contrary. The short-term effect of market integration appears to be to lower generalized trust. However, this finding is not robust across all countries.

Suggested Citation

  • Siziba, Shephard & Bulte, Erwin, 2012. "Does market participation promote generalized trust? Experimental evidence from Southern Africa," Economics Letters, Elsevier, vol. 117(1), pages 156-160.
    • Handle: RePEc:eee:ecolet:v:117:y:2012:i:1:p:156-160
    DOI: 10.1016/j.econlet.2012.05.003
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    References listed on IDEAS

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    1. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1251-1288.
    2. Fischer, Justina A.V., 2008. "Is competition good for trust? Cross-country evidence using micro-data," Economics Letters, Elsevier, vol. 100(1), pages 56-59, July.
    3. Guido Tabellini, 2008. "The Scope of Cooperation: Values and Incentives," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(3), pages 905-950.
    4. Tu, Qin & Bulte, Erwin, 2010. "Trust, Market Participation and Economic Outcomes: Evidence from Rural China," World Development, Elsevier, vol. 38(8), pages 1179-1190, August.
    5. Rohini Pande & Christopher Udry, 2005. "Institutions and Development:A View from Below," Working Papers 928, Economic Growth Center, Yale University.
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    Cited by:

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    2. Jakiela, Pamela, 2015. "How fair shares compare: Experimental evidence from two cultures," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 40-54.
    3. Romero, Christina & Wollni, Meike, 2015. "The effect of opportunistic behavior on trust: An experimental approach," GlobalFood Discussion Papers 206382, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    4. Bouma, Jetske & Reyes-García, Victoria & Huanca, Tomas & Arrazola, Susana, 2017. "Understanding conditions for co-management: A framed field experiment amongst the Tsimane’, Bolivia," Ecological Economics, Elsevier, vol. 141(C), pages 32-42.
    5. Choi, Ginny Seung & Storr, Virgil Henry, 2023. "The morality of markets in theory and empirics," Journal of Economic Behavior & Organization, Elsevier, vol. 216(C), pages 590-607.
    6. Dietrich, Stephan & Beekman, Gonne & Nillesen, Eleonora, 2018. "Market integration and pro-social behaviour in rural Liberia," MERIT Working Papers 2018-010, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Meijerink, Gerdien & Bulte, Erwin & Alemu, Dawit, 2014. "Formal institutions and social capital in value chains: The case of the Ethiopian Commodity Exchange," Food Policy, Elsevier, vol. 49(P1), pages 1-12.

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    More about this item

    Keywords

    Trust; Generalized morality; Market integration; Trade;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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