The Development Of Trust And Social Capital In Rural Uganda: An Experimental Approach
AbstractTrust is important for development but can be hard to build. In this paper, we report on experiments designed to understand the determinants of trust in villages in eastern Uganda, and in particular whether trust can be `builtÂ´ by offering insurance to people as a protection against the possibility that the trust they offer will not be reciprocated. We find, firstly, that the effects of income and wealth on trust are ambiguous: trust is higher in the richer than the poorer village, but once association and female education are added as explanatory variables, the wealth effect disappears. Secondly, although the offer of insurance is taken up by a majority of players, this is in most cases not an `effective demandÂ´ in the sense of incentivising higher levels of trust. Effective demand for insurance, defined in this way, however responds positively to high levels of risk efficacy, microfinance membership and female education. Insurance offered in this form, therefore, is on its own apparently not a reliable technology for building trust; but its effectiveness as a trust-building instrument appears to increase if certain complementary institutions are in position.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2004 with number 106.
Date of creation: 17 Sep 2004
Date of revision:
Contact details of provider:
Postal: Office of the Secretary-General, School of Economics and Finance, University of St. Andrews, St. Andrews, Fife, KY16 9AL, UK
Phone: +44 1334 462479
Web page: http://www.res.org.uk/society/annualconf.asp
More information through EDIRC
Other versions of this item:
- Paul Mosley & Arjan Verschoor, 2005. "The development of trust and social capital in rural Uganda: An experimental approach," Working Papers 2005011, The University of Sheffield, Department of Economics, revised Jun 2005.
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
This paper has been announced in the following NEP Reports:
- NEP-AFR-2004-09-30 (Africa)
- NEP-ALL-2004-10-21 (All new papers)
- NEP-CBE-2004-09-30 (Cognitive & Behavioural Economics)
- NEP-DEV-2004-10-21 (Development)
- NEP-EVO-2004-09-30 (Evolutionary Economics)
- NEP-EXP-2004-10-21 (Experimental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Edward L. Glaeser & David I. Laibson & José A. Scheinkman & Christine L. Soutter, 2000.
The Quarterly Journal of Economics,
MIT Press, vol. 115(3), pages 811-846, August.
- Steven N. Durlauf, 2002.
"On the Empirics of Social Capital,"
Royal Economic Society, vol. 112(483), pages 459-479, November.
- Roth, Alvin E. & Vesna Prasnikar & Masahiro Okuno-Fujiwara & Shmuel Zamir, 1991.
"Bargaining and Market Behavior in Jerusalem, Ljubljana, Pittsburgh, and Tokyo: An Experimental Study,"
American Economic Review,
American Economic Association, vol. 81(5), pages 1068-95, December.
- Alvin E. Roth & V. Prasnikar & M. Okuno-Fujiwara & S. Zamir, 1998. "Bargaining and market behavior in Jerusalem, Liubljana, Pittsburgh and Tokyo: an experimental study," Levine's Working Paper Archive 344, David K. Levine.
- Guth, Werner & Tietz, Reinhard, 1990. "Ultimatum bargaining behavior : A survey and comparison of experimental results," Journal of Economic Psychology, Elsevier, vol. 11(3), pages 417-449, September.
- Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2002. "An Economic Approach to Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 437-458, November.
- Abigail Barr, 2003. "Trust and expected trustworthiness: experimental evidence from zimbabwean villages," Economic Journal, Royal Economic Society, vol. 113(489), pages 614-630, 07.
- Joseph Henrich, 2000. "Does Culture Matter in Economic Behavior? Ultimatum Game Bargaining among the Machiguenga of the Peruvian Amazon," American Economic Review, American Economic Association, vol. 90(4), pages 973-979, September.
- Jeffery Carpenter & Juan Camilo Cardenas, 2006.
"Behavioural Development Economics: Lessons from field labs in the developing world,"
Middlebury College Working Paper Series
0616, Middlebury College, Department of Economics.
- Juan Camilo Cardenas & Jeffrey Carpenter, 2008. "Behavioural Development Economics: Lessons from Field Labs in the Developing World," The Journal of Development Studies, Taylor and Francis Journals, vol. 44(3), pages 311-338.
- Alvin Etang Ndip & David Fielding & Stephen Knowles, 2007.
"Survey Trust, Experimental Trust and ROSCA Membership in Rural Cameroon,"
0713, University of Otago, Department of Economics, revised Nov 2007.
- Alvin Etang & David Fielding & Stephen Knowles, 2008. "Survey Trust, Experimental Trust and ROSCA Membership in Rural Cameroon," Brooks World Poverty Institute Working Paper Series 4408, BWPI, The University of Manchester.
- Alvin Etang Ndip & David Fielding & Stephen Knowles, 2009.
"Does trust extend beyond the village? Experimental trust and social distance in Cameroon,"
0907, University of Otago, Department of Economics, revised Jul 2009.
- Alvin Etang & David Fielding & Stephen Knowles, 2011. "Does trust extend beyond the village? Experimental trust and social distance in Cameroon," Experimental Economics, Springer, vol. 14(1), pages 15-35, March.
- Tomomi Tanaka & Colin F. Camerer & Quang Nguyen, 2006. "Preferences, Poverty and Politics: Experimental and Survey Data from Vietnam," Levine's Bibliography 321307000000000054, UCLA Department of Economics.
- Juan Camilo Cardenas & Jeffrey P. Carpenter, 2005. "Experiments and Economic Development: Lessons from Field Labs in the Developing World," Middlebury College Working Paper Series 0505, Middlebury College, Department of Economics.
- Tanaka, Tomomi & Camerer, Colin & Nguyen, Quang, 2009. "Measuring Norms of Redistributive Transfers: Trust Experiments and Survey Data from Vietnam," MPRA Paper 16119, University Library of Munich, Germany.
- Greig, Fiona & Bohnet, Iris, 2005. "Is There Reciprocity in a Reciprocal Exchange Economy? Evidence from a Slum in Nairobi, Kenya," Working Paper Series rwp05-044, Harvard University, John F. Kennedy School of Government.
- Tomomi Tanaka & Colin F Camerer & Quang Nguyen, 2006. "Poverty, politics, and preferences: Field Experiments and survey data from Vietnam," Levine's Bibliography 122247000000001099, UCLA Department of Economics.
- Alvin Etang, 2008. "Modelling the Effects of Socio-Economic Characteristics on Survey Trust: Empirical Evidence from Cameroon," Working Papers 0808, University of Otago, Department of Economics, revised Oct 2008.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If references are entirely missing, you can add them using this form.