Trade, Trust and Transaction Costs

Butter, F.A.G. den; Mosch, Robert

doi:10.2139/ssrn.459501

Cited by 52 publications

(34 citation statements)

References 3 publications

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“…Taken as a whole, the results of our paper complement the findings of a number of recent studies that document the importance of trust for economic development (Tabellini, 2007, Knack and Keefer, 1997, Fafchamps, 2006, for international trade (Greif, 1989, Butter and Mosch, 2003, Guiso, Sapienza, and Zingales, 2007a, for political institutions (Putnam, 2000), and for firm management practices (Bloom, Sadun, and Van Reenan, 2008). 3 Given the mounting evidence of the importance of trust, the intended contribution of the paper is to begin to understand the origins of trust.…”

Section: Introductionsupporting

confidence: 67%

The Slave Trade and the Origins of Mistrust in Africa

Nunn¹,

Wantchékon²

2009

342

416

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We investigate the historical origins of mistrust within Africa. Combining contemporary household survey data with historic data on slave shipments, we show that individuals whose ancestors were heavily raided during the slave trade today exhibit less trust in neighbors, relatives, and their local government. We confirm that the relationship is causal by using the historic distance from the coast of a respondent's ancestors as an instrument for the intensity of the slave trade, while controlling for the individual's current distance from the coast. We undertake a number of falsification tests, all of which suggest that the necessary exclusion restriction is satisfied. Exploiting variation among individuals who live in locations different from their ancestors, we show that most of the impact of the slave trade works through factors that are internal to the individual, such as cultural norms, beliefs, and values.

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Section: Introductionsupporting

confidence: 67%

The Slave Trade and the Origins of Mistrust in Africa

Nunn¹,

Wantchékon²

2009

342

416

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“…4 He does not know his production function and therefore does not know the size of the stochastic component. 5 A detailed description of the calibration procedure can be found at http://www.openabm.org/model/3813/version/2/view. vestors?…”

Section: Resultsmentioning

confidence: 99%

How much should an investor trust the startup entrepreneur? A network model

Klabunde

2015

J Econ Interact Coord

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“…In such cases, contracts can never be complete, and trust will always play a role somewhere in the transaction process (Den Butter and Mosch, 2003;Mosch, 2004). Standards may very much contribute to such formation of trust.…”

Section: Standards and Trustmentioning

confidence: 99%

The Transaction Costs Perspective on Standards as a Source of Trade and Productivity Growth

Butter

Groot

2007

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in 1The transaction costs perspective on standards as a source of trade and productivity growth Frank A.G. den Butter, Stefan P.T. Groot and Faroek Lazrak AbstractThis paper discusses the design, implementation and use of standards from the perspective of transaction costs economics. A proper design and implementation of standards may lead to a considerable reduction of transaction costs, which enhances trade and, consequently, economic welfare. A major example is the use of containers, which has drastically changed the worldwide transport infrastructure, and lowered the costs of transport of goods considerably. The example of containers also shows that network externalities play a major role in the use of standards, and that, on the other hand, worldwide standards with large sunk investment costs may lead to a lock-in. This may call for government intervention in the design and use of standards, and in the transition processes to new standards. The paper provides ample further examples of standards and on the role of the government, or clubs, with respect to these standards.

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Trade, Trust and Transaction Costs

Cited by 52 publications

References 3 publications

The Slave Trade and the Origins of Mistrust in Africa

The Slave Trade and the Origins of Mistrust in Africa

How much should an investor trust the startup entrepreneur? A network model

The Transaction Costs Perspective on Standards as a Source of Trade and Productivity Growth

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