Logo
Munich Personal RePEc Archive

Does Trust Matter For Entrepreuneurship : Evidence From A Cross-Section Of Countries

Kodila-Tedika, Oasis and Agbor Agbor, Julius (2012): Does Trust Matter For Entrepreuneurship : Evidence From A Cross-Section Of Countries.

This is the latest version of this item.

[thumbnail of MPRA_paper_46306.pdf]
Preview
PDF
MPRA_paper_46306.pdf

Download (296kB) | Preview

Abstract

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, 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 pay attention to the role of trust cultivated through informal networks.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.