IDEAS home Printed from https://ideas.repec.org/p/wdi/papers/2003-586.html
   My bibliography  Save this paper

Trust in China: A Cross-Regional Analysis

Author

Listed:
  • Rongzhu Ke

    ()

  • Weiying Zhang

    ()

Abstract

Using the cross-regional data, this paper shows that trust has a strong effect on uneven development of economy in China. As is discovered in many studies, it is found that trust affects the growth of economy, size distribution of enterprise, and FDI inflow and so on. We also find that cross-regional differences of trust in China are reflections of the regional diversities of education, marketization of economies, urbanization, population density and transportation facilities. Although not statistically significant, ???too many officials??? may damage social trust. The paper demonstrates that trust cannot simply be taken as a cultural heritage. The paper also argues that sustainability of further economic development of China much depends on how fast China can build trust-facilitating institution, and that the most fundamental institution for trust is the property right.

Suggested Citation

  • Rongzhu Ke & Weiying Zhang, 2003. "Trust in China: A Cross-Regional Analysis," William Davidson Institute Working Papers Series 2003-586, William Davidson Institute at the University of Michigan.
  • Handle: RePEc:wdi:papers:2003-586
    as

    Download full text from publisher

    File URL: http://deepblue.lib.umich.edu/bitstream/2027.42/39972/3/wp586.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Fisman, Raymond & Khanna, Tarun, 1999. "Is trust a historical residue? Information flows and trust levels," Journal of Economic Behavior & Organization, Elsevier, vol. 38(1), pages 79-92, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Robert C. Feenstra & Gordon H. Hanson, 2005. "Ownership and Control in Outsourcing to China: Estimating the Property-Rights Theory of the Firm," The Quarterly Journal of Economics, Oxford University Press, vol. 120(2), pages 729-761.
    2. Song, Fei & Cadsby, C. Bram & Bi, Yunyun, 2012. "Trust, Reciprocity, and Guanxi in China: An Experimental Investigation," Management and Organization Review, Cambridge University Press, vol. 8(02), pages 397-421, July.
    3. repec:spr:manint:v:55:y:2015:i:4:d:10.1007_s11575-014-0234-3 is not listed on IDEAS
    4. Wu, Wenfeng & Firth, Michael & Rui, Oliver M., 2014. "Trust and the provision of trade credit," Journal of Banking & Finance, Elsevier, vol. 39(C), pages 146-159.
    5. Huang Fali, 2004. "Social Trust and Economic Governance," Working Papers 14-2004, Singapore Management University, School of Economics.
    6. Hiroshi Sato, 2010. "Growth of Villages in China, 1990–2002," Frontiers of Economics in China, Higher Education Press, vol. 5(1), pages 135-149, March.
    7. James S. Ang & Zhiqian Jiang & Chaopeng Wu, 2016. "Good Apples, Bad Apples: Sorting Among Chinese Companies Traded in the U.S," Journal of Business Ethics, Springer, vol. 134(4), pages 611-629, April.

    More about this item

    Keywords

    Trust; Economic performance; Information Repeated game; Transaction;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:wdi:papers:2003-586. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (WDI). General contact details of provider: http://edirc.repec.org/data/wdumius.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.