Does Trust Matter for Entrepreneurship: Evidence from A Cross-Section of Countries

Oasis Kodila-Tedika and Julius Agbor ()
Additional contact information
Julius Agbor: Stellenbosch University

No 15/057, Working Papers of the African Governance and Development Institute. from African Governance and Development Institute.

Abstract: Differences in trust levels between countries explain the observed discrepancies in entrepreneurial spirit amongst them. We test this hypothesis with a cross-section of 60 countries in 2010. Our findings suggest that about half of the variation in entrepreneurial spirit across countries in the world is driven by trust considerations. This result is robust to regional clustering, to outliers and to alternative conditioning variables. The findings of the study suggest that while formal incentives to nurture entrepreneurship must be maintained, policy-makers should also seek to pay attention to the role of trust cultivated through informal networks.

Keywords: trust; institution; entrepreneurship (search for similar items in EconPapers)
Pages: 24
Date: 2015-12
New Economics Papers: this item is included in nep-cse, nep-ent, nep-ino and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.afridev.org/RePEc/agd/agd-wpaper/Does-T ... Entrepreneurship.pdf Revised version, 2015 (application/pdf)

Related works:
Journal Article: Does Trust Matter for Entrepreneurship: Evidence from a Cross-Section of Countries (2016)
Working Paper: Does Trust Matter for Entrepreneurship: Evidence from A Cross-Section of Countries (2015)
Working Paper: Does Trust Matter For Entrepreuneurship: Evidence From A Cross-Section Of Countries (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:agd:wpaper:15/057

Access Statistics for this paper

More papers in Working Papers of the African Governance and Development Institute. from African Governance and Development Institute. Contact information at EDIRC.
Bibliographic data for series maintained by Asongu Simplice ().