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Social Capital and Large-Scale Agricultural Investments: An Experimental Investigation

Menusch Khadjavi, Kacana Sipangule and Rainer Thiele

Open Access Publications from Kiel Institute for the World Economy from Kiel Institute for the World Economy (IfW Kiel)

Abstract: Following the 2007–8 global food crisis, agricultural producers have invested in large tracts of land in developing countries. We investigate how the arrival of large-scale farms changes inter-personal trust and reciprocity, important components of social capital, in traditional villages. We elicit trust and reciprocal behaviour in villages that lie near large-scale farms and compare them with villages at a distance. Our data reveal greater trust in villages close to large-scale farms. Reciprocity is more frequent after farm employment. These results are likely driven by communal coping and reputation building. A natural field measure shows that trust correlates with public good sharing.

Keywords: social capital; market exposure; cooperation; large-scale agricultural investments; field experiment; smallholder agriculture; Zambia (search for similar items in EconPapers)
JEL-codes: C93 O10 O13 P14 Q12 Q15 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-agr, nep-exp and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Journal Article: Social Capital and Large-Scale Agricultural Investments: An Experimental Investigation (2021) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkie:230937

DOI: 10.1093/ej/ueaa050

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