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Trust in Large Organizations

Author

Listed:
  • Rafael La Porta
  • Florencio Lopez-de-Silane
  • Andrei Shleifer
  • Robert W. Vishny
Abstract
Several authors suggest that trust is an important determinant of cooperation between strangers in a society, and therefore of performance of social institutions. We argue that trust should be particularly important for the performance of large organizations. In a cross-section of countries, evidence on government performance, participation in civic and professional societies, importance of large firms, and the performance of social institutions more generally supports this hypothesis. Moreover, trust is lower in countries with dominant hierarchical religions, which may have deterred networks of cooperation trust hold up remarkably well on a cross-section of countries.

Suggested Citation

  • Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer & Robert W. Vishny, 1996. "Trust in Large Organizations," NBER Working Papers 5864, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:5864
    Note: CF
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    JEL classification:

    • E - Macroeconomics and Monetary Economics

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