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Trust, regulation and participatory forest management: Micro-level evidence on forest governance from Ethiopia

Goytom Kahsay and Erwin Bulte ()

World Development, 2019, vol. 120, issue C, 118-132

Abstract: A small literature investigates the co-evolution of culture and institutions (formal regulation). We present new micro-level evidence on the relationship between culture and institutions in forest resource management. Using data on forest user groups in Ethiopia, we document a negative correlation between various measures of trust and the degree of formalization of forest monitoring and extraction. Additional analysis suggests the nature of this relation is causal: groups with low level of trust implement more extensive rules to govern monitoring and extraction of their forest resource. This is consistent with the idea that trust and rules are substitutes in natural resource management.

Keywords: Trust; Social capital; Institutions; Forest management; Forest user groups (search for similar items in EconPapers)
JEL-codes: D02 D71 Q23 Q56 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1016/j.worlddev.2019.04.007

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