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Does Country Level Social Trust Predict the Size of the Sharing Economy?

Author

Listed:
  • Bergh, Andreas

    (Research Institute of Industrial Economics (IFN))

  • Funcke, Alexander

    (Philosophy, Politics & Economics)

Abstract

The sharing economy (peer-to-peer based sharing or renting activities coordinated through community-based online services) is typically assumed to be closely related to social trust. The two sharing economy companies Airbnb and Flipkey exist in over 100 countries, allowing us to construct a measure of sharing economy penetration to test against social trust and other potential explanations. Results indicate that sharing economy penetration is promoted by ICT-infrastructure and economic openness, whereas the correlation with social trust is negative and often statistically significant. Our conclusion is that sharing economy services do not require high levels of social trust to succeed. Rather, they provide institutions that facilitate trust-intensive economic activities also where social trust is low.

Suggested Citation

  • Bergh, Andreas & Funcke, Alexander, 2016. "Does Country Level Social Trust Predict the Size of the Sharing Economy?," Working Paper Series 1130, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:1130
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    References listed on IDEAS

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    Cited by:

    1. Takashi Majima & Per Fors & Yu Inutsuka & Yohko Orito, 2021. "Is the Meaning of the “Sharing Economy” Shared Among Us? Comparing the Perspectives of Japanese and Swedish Researchers," The Review of Socionetwork Strategies, Springer, vol. 15(1), pages 87-106, June.
    2. Wei Yin & Berna Kirkulak-Uludag & Ziling Chen, 2021. "Is the Sharing Economy Green? Evidence from Cross-Country Data," Sustainability, MDPI, vol. 13(21), pages 1-19, October.
    3. repec:ers:journl:v:xxiv:y:2021:i:special1:p:362-375 is not listed on IDEAS
    4. R. Basselier & G. Langenus & L. Walravens, 2018. "The rise of the sharing economy," Economic Review, National Bank of Belgium, issue iii, pages 57-78, september.
    5. repec:nbb:ecrart:y:2017:m:september:i:iii:p:57-78 is not listed on IDEAS

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    More about this item

    Keywords

    Sharing economy; Trust; Information technology;
    All these keywords.

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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