DOES TRUST PROMOTE ENTREPRENEURSHIP IN A DEVELOPING COUNTRY?
© 2016 World Scientific Publishing CompanyTrust was found to promote entrepreneurship in the US. We investigated whether this was true in a developing country, Indonesia. We failed to replicate this; this failure was true whether trust was estimated at the individual or community level or whether or...
| Main Authors: | , |
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| Format: | Journal Article |
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World Scientific Publishing
2016
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| Online Access: | http://hdl.handle.net/20.500.11937/51730 |
| _version_ | 1848758760766439424 |
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| author | Sohn, Kitae KWON, I. |
| author_facet | Sohn, Kitae KWON, I. |
| author_sort | Sohn, Kitae |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | © 2016 World Scientific Publishing CompanyTrust was found to promote entrepreneurship in the US. We investigated whether this was true in a developing country, Indonesia. We failed to replicate this; this failure was true whether trust was estimated at the individual or community level or whether ordinary least squares (OLS) or two stage least squares (2SLS) was employed. We reconciled the difference between our results and those for the US by arguing that the weak enforcement of property rights in developing countries and the consequent hold-up problem make it more efficient for entrepreneurs to produce generic goods than relationship-specific goods—producing generic goods does not depend on trust. |
| first_indexed | 2025-11-14T09:49:07Z |
| format | Journal Article |
| id | curtin-20.500.11937-51730 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T09:49:07Z |
| publishDate | 2016 |
| publisher | World Scientific Publishing |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-517302017-09-13T15:37:23Z DOES TRUST PROMOTE ENTREPRENEURSHIP IN A DEVELOPING COUNTRY? Sohn, Kitae KWON, I. © 2016 World Scientific Publishing CompanyTrust was found to promote entrepreneurship in the US. We investigated whether this was true in a developing country, Indonesia. We failed to replicate this; this failure was true whether trust was estimated at the individual or community level or whether ordinary least squares (OLS) or two stage least squares (2SLS) was employed. We reconciled the difference between our results and those for the US by arguing that the weak enforcement of property rights in developing countries and the consequent hold-up problem make it more efficient for entrepreneurs to produce generic goods than relationship-specific goods—producing generic goods does not depend on trust. 2016 Journal Article http://hdl.handle.net/20.500.11937/51730 10.1142/S0217590816500144 World Scientific Publishing restricted |
| spellingShingle | Sohn, Kitae KWON, I. DOES TRUST PROMOTE ENTREPRENEURSHIP IN A DEVELOPING COUNTRY? |
| title | DOES TRUST PROMOTE ENTREPRENEURSHIP IN A DEVELOPING COUNTRY? |
| title_full | DOES TRUST PROMOTE ENTREPRENEURSHIP IN A DEVELOPING COUNTRY? |
| title_fullStr | DOES TRUST PROMOTE ENTREPRENEURSHIP IN A DEVELOPING COUNTRY? |
| title_full_unstemmed | DOES TRUST PROMOTE ENTREPRENEURSHIP IN A DEVELOPING COUNTRY? |
| title_short | DOES TRUST PROMOTE ENTREPRENEURSHIP IN A DEVELOPING COUNTRY? |
| title_sort | does trust promote entrepreneurship in a developing country? |
| url | http://hdl.handle.net/20.500.11937/51730 |