Is Trust a Historical Residue? Information Flows and Trust Levels

Abstract In making cross-country social comparisons, `trust' has usually been treated as a culturally determined primitive. However, understanding the determinants of trust would enhance our understanding of its effects on the nature of contracting and on organizational structure. Theories of economists and sociologists generally predict a positive relationship between trust and information flows. We examine some institutional determinants of trust, using data from the World Values Survey 1990–1993 and the International Telecommunications Union Yearbook. Our finding that trust is increasing in the ease of two-way communication, particularly in urbanized economies, calls into question the extreme viewpoint that trust is purely a historical residue.

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