Trust in Transition: Cross-Country and Firm Evidence

Using data from a large survey of firms across 26 transition economies, this article assesses the extent of trust in business relationships by measuring the level of prepayment demanded by suppliers, which we interpret as a measure of (dis)trust. We investigate a range of potential determinants of t...

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Main Authors:	Raiser, Martin, Rousso, Alan, Steves, Franklin, Teksoz, Utku
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Firm Performance: Size, Diversification, and Scope L250 Socialist Enterprises and Their Transitions P310 Economic Sociology Economic Anthropology Social and Economic Stratification Z130
Online Access:	http://hdl.handle.net/10986/4857

id	okr-10986-4857
recordtype	oai_dc
spelling	okr-10986-48572021-04-23T14:02:19Z Trust in Transition: Cross-Country and Firm Evidence Raiser, Martin Rousso, Alan Steves, Franklin Teksoz, Utku Firm Performance: Size, Diversification, and Scope L250 Socialist Enterprises and Their Transitions P310 Economic Sociology Economic Anthropology Social and Economic Stratification Z130 Using data from a large survey of firms across 26 transition economies, this article assesses the extent of trust in business relationships by measuring the level of prepayment demanded by suppliers, which we interpret as a measure of (dis)trust. We investigate a range of potential determinants of trust and find that trust among businesses is higher where confidence in third party enforcement through the legal system is higher. We also find that different types of business networks have a differential impact on the degree of trust between enterprises: networks based around family and friends help to build trust among firms, whereas networks based around enterprise insiders and government agencies appear to undermine trust. Our conclusion, based on the use of a unique multicountry enterprise data set, is that enterprises' room for maneuver in overcoming opportunism and distrust is much more limited by countrywide systemic factors than previously believed. 2012-03-30T07:30:05Z 2012-03-30T07:30:05Z 2008 Journal Article Journal of Law, Economics, and Organization 87566222 http://hdl.handle.net/10986/4857 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Firm Performance: Size, Diversification, and Scope L250 Socialist Enterprises and Their Transitions P310 Economic Sociology Economic Anthropology Social and Economic Stratification Z130
spellingShingle	Firm Performance: Size, Diversification, and Scope L250 Socialist Enterprises and Their Transitions P310 Economic Sociology Economic Anthropology Social and Economic Stratification Z130 Raiser, Martin Rousso, Alan Steves, Franklin Teksoz, Utku Trust in Transition: Cross-Country and Firm Evidence
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Using data from a large survey of firms across 26 transition economies, this article assesses the extent of trust in business relationships by measuring the level of prepayment demanded by suppliers, which we interpret as a measure of (dis)trust. We investigate a range of potential determinants of trust and find that trust among businesses is higher where confidence in third party enforcement through the legal system is higher. We also find that different types of business networks have a differential impact on the degree of trust between enterprises: networks based around family and friends help to build trust among firms, whereas networks based around enterprise insiders and government agencies appear to undermine trust. Our conclusion, based on the use of a unique multicountry enterprise data set, is that enterprises' room for maneuver in overcoming opportunism and distrust is much more limited by countrywide systemic factors than previously believed.
format	Journal Article
author	Raiser, Martin Rousso, Alan Steves, Franklin Teksoz, Utku
author_facet	Raiser, Martin Rousso, Alan Steves, Franklin Teksoz, Utku
author_sort	Raiser, Martin
title	Trust in Transition: Cross-Country and Firm Evidence
title_short	Trust in Transition: Cross-Country and Firm Evidence
title_full	Trust in Transition: Cross-Country and Firm Evidence
title_fullStr	Trust in Transition: Cross-Country and Firm Evidence
title_full_unstemmed	Trust in Transition: Cross-Country and Firm Evidence
title_sort	trust in transition: cross-country and firm evidence
publishDate	2012
url	http://hdl.handle.net/10986/4857
_version_	1764393013279195136

Trust in Transition: Cross-Country and Firm Evidence

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