Does Trust Matter For Entrepreuneurship: Evidence From A Cross-Section Of Countries
Oasis Kodila-Tedika () and
Julius Agbor ()
MPRA Paper from University Library of Munich, Germany
To the extent that trust is necessary to conduct informal sector business activities, its absence could possibly constrain entrepreneurial spirit and overall economic growth. This paper tests the hypothesis that differences in trust levels between countries explain the observed differences in entrepreneurial spirit amongst them. Analyzing 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 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 pay attention to the role of trust cultivated through informal networks.
Keywords: Entrepreneurship; Trust; Institutions (search for similar items in EconPapers)
JEL-codes: D2 P48 L26 Z13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-ent, nep-iue and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/42292/1/MPRA_paper_42292.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/46306/8/MPRA_paper_46306.pdf revised version (application/pdf)
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)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:42292
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().