Journal Papers
Trust, Market Participation and Economic Outcomes: Evidence from Rural China
Published：2010-02-07
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Abstract:
Markets can only function properly in the presence of sufficient trust. We explore the relation between trusting behavior and market integration in rural China. We link the results of a trust experiment to actual behavior in the field (participation in the labor market versus informally exchanging labor), and find that high-trust households are more likely to use formal markets. We proceed by exploring the relation between labor market participation and economic outcomes, finding tentative evidence of a causal relation running from market participation to higher levels of income.
Key words:
Trust game; Economic behavior; Babor exchange; Labor market participation
Reference:
TU, Qin and Erwin Bulte (2010). Trust, Market Participation and Economic Outcomes: Evidence from Rural China.World Development, 38(8): 1179-1190.
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