Title

Driven underground by (mis)trust?

Document Type

Article

Publication Date

2020

Department/School

Economics

Publication Title

Applied Economics Letters

Abstract

© 2019, © 2019 Informa UK Limited, trading as Taylor & Francis Group. Studies have shown that economic and institutional variables are among the causes of underground activities. However, the effect of cultural variables such as trust on informality and, in particular, informal entrepreneurship, have been less explored. Using unique cross-national data, we study the influence of generalized trust on underground entrepreneurship. We find that nations with higher trust are associated with less informal entrepreneurship.

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