Bloom, Nick; Sadun, Raffaella; Reenen, John Van - Centre for Economic Performance, LSE - 2009
We argue that social capital as proxied by trust increases aggregate productivity by affecting the organization of … Corporate Headquarters to local plant managers in almost 4,000 firms in the United States, Europe, and Asia. We find that firms … headquartered in high trust regions are more likely to decentralize, with trust accounting for about half of the variation in …