Driven underground by (mis)trust?

Aziz N. Berdiev and James Saunoris

Applied Economics Letters, 2020, vol. 27, issue 4, 286-290

Abstract: Studies have shown that economic and institutional variables are among the causes of underground activities. However, the effect of cultural variables such as trust on informality and, in particular, informal entrepreneurship, have been less explored. Using unique cross-national data, we study the influence of generalized trust on underground entrepreneurship. We find that nations with higher trust are associated with less informal entrepreneurship.

Date: 2020
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DOI: 10.1080/13504851.2019.1613497

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