Trust, market participation and economic outcomes: Evidence from rural China

T. Qin, E.H. Bulte

Research output: Contribution to journalArticleScientificpeer-review

24 Citations (Scopus)

Abstract

Markets can only function properly in the presence of sufficient trust. We explore the relation between trusting behavior and market integration in rural China. We link the results of a trust experiment to actual behavior in the field (participation in the labor market versus informally exchanging labor), and find that high-trust households are more likely to use formal markets. We proceed by exploring the relation between labor market participation and economic outcomes, finding tentative evidence of a causal relation running from market participation to higher levels of income.
Original languageEnglish
Pages (from-to)1179-1190
JournalWorld Development
Volume38
Issue number8
Publication statusPublished - 2010

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