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The relationship between trust and networks. An exploratory empirical analysis

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  • Fabio Sabatini

    ()
    (University of Siena, Department of Economics and Faculty of Political Science)

Abstract

Which kind of network fosters the diffusion of development-oriented trust? This paper carries out an empirical investigation into the causal relationships connecting four types of social networks (i.e. bonding, bridging, linking, and corporate), and different forms of trust (knowledge-based trust, social trust, trust towards public services and political institutions), in a community of entrepreneurs located in the Italian industrial district of the Tuscia. Our results suggest that the main factors fostering the diffusion of social trust among entrepreneurs is the establishment of corporate ties through professional associations. Trust in people is positively and significantly correlated also to higher levels of satisfaction and confidence in public services. Participation in voluntary organizations does not appear to increase trust towards strangers. Rather, we find evidence of the other way round: interpersonal trust seems to encourage civic engagement.

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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 29 (2009)
Issue (Month): 2 ()
Pages: 661-672

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Handle: RePEc:ebl:ecbull:eb-09-00184

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Keywords: Trust; Social capital; Social networks; Professional associations; Entrepreneurship; Corporate ties; Group and Interpersonal Processes; Social Perception and Cognition.;

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  1. Beugelsdijk, Sjoerd & van Schaik, Ton, 2005. "Social capital and growth in European regions: an empirical test," European Journal of Political Economy, Elsevier, Elsevier, vol. 21(2), pages 301-324, June.
  2. Bjornskov, Christian, 2006. "The multiple facets of social capital," European Journal of Political Economy, Elsevier, Elsevier, vol. 22(1), pages 22-40, March.
  3. Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer & Robert W. Vishny, 1996. "Trust in Large Organizations," NBER Working Papers 5864, National Bureau of Economic Research, Inc.
  4. Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 111(470), pages 295-321, April.
  5. Christian Bjørnskov, 2012. "How Does Social Trust Affect Economic Growth?," Southern Economic Journal, Southern Economic Association, Southern Economic Association, vol. 78(4), pages 1346-1368, April.
  6. Sabatini, Fabio, 2009. "Social capital as social networks: A new framework for measurement and an empirical analysis of its determinants and consequences," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, Elsevier, vol. 38(3), pages 429-442, June.
  7. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(4), pages 1251-88, November.
  8. Fabio Sabatini, 2006. "The Empirics of Social Capital and Economic Development: A Critical Perspective," Working Papers, Fondazione Eni Enrico Mattei 2006.15, Fondazione Eni Enrico Mattei.
  9. Quibria, M.G., 2003. "The Puzzle of Social Capital: A Critical Review," MPRA Paper 2640, University Library of Munich, Germany, revised 2003.
  10. Fabio, Sabatini, 2005. "The empirics of social capital and economic development: a critical perspective," MPRA Paper 2366, University Library of Munich, Germany, revised Mar 2007.
  11. Aigner, Dennis J. & Hsiao, Cheng & Kapteyn, Arie & Wansbeek, Tom, 1984. "Latent variable models in econometrics," Handbook of Econometrics, Elsevier, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 23, pages 1321-1393 Elsevier.
  12. Fabio Sabatini, 2008. "Social Capital and the Quality of Economic Development," Kyklos, Wiley Blackwell, Wiley Blackwell, vol. 61(3), pages 466-499, 08.
  13. Paul Streeten, 2002. "Reflections on Social and Antisocial Capital," Journal of Human Development and Capabilities, Taylor & Francis Journals, Taylor & Francis Journals, vol. 3(1), pages 7-22.
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Cited by:
  1. d'Agostino, Giorgio & Scarlato, Margherita, 2012. "Inclusive Institutions, Innovation and Economic Growth: Estimates for European Countries," MPRA Paper 43098, University Library of Munich, Germany.
  2. Yamamura, Eiji, 2010. "The role of social trust in reducing long-term truancy and forming human capital in Japan," MPRA Paper 26407, University Library of Munich, Germany.
  3. Yamamura, Eiji & Antonio R, Andrés, 2011. "Trust and Fertility: Evidence from OECD countries," MPRA Paper 29978, University Library of Munich, Germany.
  4. Pierre Courtois & Tarik Tazdaït, 2012. "Learning to trust strangers: an evolutionary perspective," Journal of Evolutionary Economics, Springer, Springer, vol. 22(2), pages 367-383, April.
  5. Esperanza Vera-Toscano & Fernando Garrido-Fernández & José Gómez-Limón & José Cañadas-Reche, 2013. "Are Theories About Social Capital Empirically Supported? Evidence from the Farming Sector," Social Indicators Research, Springer, Springer, vol. 114(3), pages 1331-1359, December.
  6. Fiorillo, Damiano & Sabatini, Fabio, 2010. "An exploratory analysis of the relationship between social interactions, income and health in Italy," MPRA Paper 26728, University Library of Munich, Germany.

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