Trust and livelihood adaptation: evidence from rural Mexico (original) (raw)
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The Role of Trust in Access to Bank Loans: Results from Field Experiments in the Ecuadorian Amazon
2006
In this paper, we distinguish between horizontal and vertical trust. We investigate how these measures of trust, as well as measures of trustworthiness and risk aversion are related to the probability of rural farmers of having had a loan from a bank. Using experimental and survey data from 191 farmers of the Amazon region of Ecuador, we find that: (1) controlling for risk aversion, women do not trust differently than men in each trust game, however, women compared to men do trust outside professionals more than community members, and (2) isolated rural farmers with stronger preferences for trusting outside professionals experience higher levels of bank loan uptake.
Trust, trustworthiness, and risk in rural Paraguay
Exp Econ, 2006
This dissertation looks at the relationship between trust, trustworthiness, and risk aversion in a rural Paraguayan setting. The first chapter of this dissertation looks at theft between farmers. Rural areas of developing countries often lack effective legal enforcement. However, villagers who know each other well and interact repeatedly may use implicit contracts to minimize crime. I construct a dynamic limited-commitment model in which a thief cannot credibly commit to forego stealing from his fellow villagers but may be induced to limit his stealing by the promise of future gifts from his potential victim. Using a unique survey from rural Paraguay which combines traditional data on production with information on theft, gifts, and trust, as well as with experiments measuring trust and trustworthiness, I test whether the data is consistent with predictions from the dynamic model. The results provide evidence that, in contrast with predictions from a one-period model with an anonymous thief, farmers do implicitly contract with one another to limit theft. Farmers who have more close family members in their village give fewer gifts, and farmers with plots which are more difficult to steal from give fewer gifts, experience less theft, and trust more. Gift-giving increases when trust is lower and the threat of theft is greater, turning the social capital literature on its head. The second chapter of this dissertation looks at a different linkage between trust, trustworthiness, and risk. Trusting behavior in general and play in the traditional trust experiment specifically depend both on trust beliefs and on levels of risk aversion. I ran two experiments with a diverse set of subjects in fifteen villages of rural Paraguay, the traditional trust experiment and a new experiment measuring only risk aversion. I find that risk attitudes are highly predictive of play in the trust game. In addition, omitting risk aversion as a regressor in trust regressions significantly changes the coefficients of important explanatory variables such as gender and wealth. The chair of this dissertation committee was Ethan Ligon and the other committee members were George Akerlof and Elisabeth Sadoulet.
Agricultural extension, trust, and learning: results from economic experiments in Ecuador
Agricultural Economics, 2011
Using an artefactual economic experiment and a randomized training intervention in Ecuador we test if trust conditions a farmer's decision to learn during an agricultural training. We present a simple model of farmer behavior during the agricultural training in order to link play in the laboratory to behavior in the eld. We nd evidence that farmers who trust agricultural technicians relatively more than community farmers in the trust game learn more during training. The results provide insight into the design of agricultural extension services in Ecuador.
Wealth-based trust and the development of collective action
World Development, 2004
Interpersonal trust is one possible mechanism by which wealth inequality affects the success of efforts in cooperation. Specifically, the presence of perceived economic differences between members of small agricultural cooperatives in northwest Ecuador's agricultural frontier ...
Trust networks and agroclimatic risk in agricultural technical assistance, Colombia
2021
The objective of this research was to analyze the changes in the networks of technical trust of agricultural technical assistants (ATA), after a process of management and diffusion of a culture of agroclimatic risk over a period of two years in the departments of Cundinamarca, La Guajira and Valle del Cauca, Colombia. Interviews with ATAs were conducted in two moments of observation: at the beginning (2015) and at the end of the intervention of the agroclimatic adaptation and prevention models project (2017). The social network analysis was used as an analysis and an intervention tool, this permitted to identify the structure of the network and the actors with greatest coverage of information diffusion in the departments. The intervention of the MAPA project led to structural changes in the networks of technical trust of the ATAs and their perception of the importance of the agroclimatic risk issue in the provision of extension services. In Cundinamarca and La Guajira, the ATAs decr...
Trust, Market Participation and Economic Outcomes: Evidence from Rural China
2010
We explore linkages 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 market participation and economic outcomes, and find that farmers who participate in the labor market have better economic performance in terms of saving.
Maize production is of critical importance to smallholder farmers in Ghana. Various factors limit the productivity of smallholder maize farming systems undergirded by the lack of capital for critical investments both at the farm and at national policy levels. Using a value chain approach, this diagnostic study explains how a complex configuration of actor interaction within an institutionally and agro-ecologically challenged value chain leads to the enduring absence of maize farming credit support. We find a cycle of credit rationing resulting from value chain challenges such as agro-ecological uncertainties, inadequate GAPs training, weak farmer groups and market insecurity. This condition is sustained by an interplay between mistrust, insufficient information across the value chain and inadequate control strategies in the maize credit system. We argue that Digital Platforms (DPs) show potential to help overcome some information and communication gaps and related uncertainties that impede traditional value chain credit arrangements. This is promising in terms of aiding awareness and coordinated responsiveness to agro-ecological farm conditions and the development of farming records databases. Thus, DPs could generate new networks and forms of cooperation in the maize value chain in this regard. As a tool for mediating trust in value chain credit cooperation, strategic use of these DP contributions could help initiate an entry point for recalibration of trust perceptions. Significant considerations and improvements are however needed to harness DPs effectively in mediating trust for maize credit provision, not least being farmer digital inclusion in DP implementation, effective intermediation and network governance arrangements and digital contributions towards cost-effective agro-ecological controls in the erratic maize farming context. This approach to trust building should therefore not be viewed as a quick fix but as a process of trial and error, and learning by doing.
Trust, Market Participation and Economic Outcomes: Evidence from Rural China1
2000
We explore linkages 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 market participation and economic outcomes, and
2003
This paper explores social arrangements associated with seed transactions among small-scale maize farmers in the Central Valleys of Oaxaca, Mexico, a centre of crop genetic diversity. A formal seed distribution system has yet to develop in the region and when seed loss occurs, farmers are faced with costs and difficulties identifying, locating, and obtaining seed of desired varieties. For these reasons, it was hypothesized that there were strong incentives for collective action among farmers to facilitate seed supply. The study found, however, no evidence of collective action with regards to seed supply in the three study communities-San Pablo Huitzo, San Lorenzo Albarradas, Santa Ana Zegache. Instead, farmers acquired seed using a variety of networks of social relations and different types of seed transactions. The results suggest that seed flow among farmers in the Central Valleys of Oaxaca is a complex process of negotiation and reciprocity, influenced by a variety of agroecologi...