IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2007-042.html
   My bibliography  Save this paper

Give Trust a Chance—A Model of Trust in the Context of an IMF-Supported Program

Author

Listed:
  • Mr. Daouda Sembene

Abstract

This paper is an attempt to identify the determinants of trust between country authorities and IMF staff in the context of an IMF-supported program. Using an outcomes-based definition of trust, a game-theoretic model is developed to compute the level of trust between the two parties. The results and the analysis of trust-related issues emerging in a program context suggest that trust between country authorities and IMF staff exerts a positive impact on the likelihood of program success through its ability to improve the quality of the design, the efficiency of negotiation, and the effectiveness of implementation of an IMF-supported program. Some initiatives to secure such benefits and enhance trust in staff are proposed.

Suggested Citation

  • Mr. Daouda Sembene, 2007. "Give Trust a Chance—A Model of Trust in the Context of an IMF-Supported Program," IMF Working Papers 2007/042, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2007/042
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=20442
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hong, Kessely & Bohnet, Iris, 2007. "Status and distrust: The relevance of inequality and betrayal aversion," Journal of Economic Psychology, Elsevier, vol. 28(2), pages 197-213, April.
    2. Mr. Ralph Chami & Connel Fullenkamp, 2002. "Trust As a Means of Improving Corporate Governance and Efficiency," IMF Working Papers 2002/033, International Monetary Fund.
    3. Chami, Ralph & Fullenkamp, Connel, 2002. "Trust and efficiency," Journal of Banking & Finance, Elsevier, vol. 26(9), pages 1785-1809, September.
    4. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-338, May.
    5. Alberto Alesina & Eliana La Ferrara, 2000. "The Determinants of Trust," NBER Working Papers 7621, National Bureau of Economic Research, Inc.
    6. Akbar Zaheer & Bill McEvily & Vincenzo Perrone, 1998. "Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance," Organization Science, INFORMS, vol. 9(2), pages 141-159, April.
    7. Eric Santor, 2006. "Governance and the IMF: Does the Fund Follow Corporate Best Practice?," Staff Working Papers 06-32, Bank of Canada.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ajai Gaur & Chinmay Pattnaik & Deeksha Singh & Jeoung Yul Lee, 2022. "Societal trust, formal institutions, and foreign subsidiary staffing," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1045-1061, August.
    2. Judit Oláh & Attila Bai & György Karmazin & Péter Balogh & József Popp, 2017. "The Role Played by Trust and Its Effect on the Competiveness of Logistics Service Providers in Hungary," Sustainability, MDPI, vol. 9(12), pages 1-22, December.
    3. Amore, Mario Daniele & Epure, Mircea, 2021. "Riding out of a financial crisis: The joint effect of trust and corporate ownership," Journal of Comparative Economics, Elsevier, vol. 49(1), pages 92-109.
    4. Ernst Fehr, 2009. "On The Economics and Biology of Trust," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 235-266, 04-05.
    5. Judit Oláh & Yusmar Ardhi Hidayat & Zdzisława Dacko-Pikiewicz & Morshadul Hasan & József Popp, 2021. "Inter-Organizational Trust on Financial Performance: Proposing Innovation as a Mediating Variable to Sustain in a Disruptive Era," Sustainability, MDPI, vol. 13(17), pages 1-18, September.
    6. Groot, Wim & Maassen van den Brink, Henriette & van Praag, Bernard M. S., 2006. "The Compensating Income Variation of Social Capital," IZA Discussion Papers 2529, Institute of Labor Economics (IZA).
    7. Ding, Zhujun & Au, Kevin & Chiang, Flora, 2015. "Social trust and angel investors' decisions: A multilevel analysis across nations," Journal of Business Venturing, Elsevier, vol. 30(2), pages 307-321.
    8. Lesmeister, Simon & Limbach, Peter & Goergen, Marc, 2022. "Trust and monitoring," Journal of Banking & Finance, Elsevier, vol. 143(C).
    9. Suchon, Rémi & Villeval, Marie Claire, 2019. "The effects of status mobility and group identity on trust," Journal of Economic Behavior & Organization, Elsevier, vol. 163(C), pages 430-463.
    10. Xu, Qiao & Fernando, Guy D. & Tam, Kinsun, 2019. "Trust and firm performance: A bi-directional study," Advances in accounting, Elsevier, vol. 47(C).
    11. Polipciuc, Maria, 2022. "Group identity and betrayal: decomposing trust," Research Memorandum 005, Maastricht University, Graduate School of Business and Economics (GSBE).
    12. Daniel Miles-Touya & Irene Mussio & Máximo Rossi, 2015. "Trust and Confidence in Institutions: religious beliefs and educational attainment," Documentos de Trabajo (working papers) 0515, Department of Economics - dECON.
    13. Wang Dong & Hongling Han & Yun Ke & Kam C. Chan, 2018. "Social Trust and Corporate Misconduct: Evidence from China," Journal of Business Ethics, Springer, vol. 151(2), pages 539-562, August.
    14. Jian Huang & Henriëtte Maassen van den Brink & Wim Groot, 2012. "Does education promote social capital? Evidence from IV analysis and nonparametric-bound analysis," Empirical Economics, Springer, vol. 42(3), pages 1011-1034, June.
    15. Becchetti, Leonardo & Conzo, Pierluigi, 2011. "Enhancing capabilities through credit access: Creditworthiness as a signal of trustworthiness under asymmetric information," Journal of Public Economics, Elsevier, vol. 95(3-4), pages 265-278, April.
    16. Ho, Kung-Cheng & Yen, Huang-Ping & Gu, Yan & Shi, Lisi, 2020. "Does societal trust make firms more trustworthy?," Emerging Markets Review, Elsevier, vol. 42(C).
    17. Viitanen, Tarja, 2011. "Parental Divorce and Generalized Trust," IZA Discussion Papers 5898, Institute of Labor Economics (IZA).
    18. Wim Groot & Henriëtte Brink & Bernard Praag, 2007. "The Compensating Income Variation of Social Capital," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 82(2), pages 189-207, June.
    19. Bönte, Werner, 2008. "Inter-firm trust in buyer-supplier relations: Are knowledge spillovers and geographical proximity relevant?," Journal of Economic Behavior & Organization, Elsevier, vol. 67(3-4), pages 855-870, September.
    20. Elisa Borghi & Michela Braga & Francesco Scervini, 2020. "Fear of the dark: How terrorist events affect trust in the long run," BAFFI CAREFIN Working Papers 20149, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2007/042. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.