&D investment, and derive predictions on the effects of trust and competition on suppliers' investment and buyers' procurement … automotive industry. Consistent with the model's predictions, higher levels of trust are associated with higher investment levels … - but also with more competitive procurement: trust and rents from reduced supplier competition in the procurement process …

robustly established that remittances and trust matter for financial development. …

We investigate the role of mutual trust in long-term vertical relationships involving trades of complex goods. High … complexity is associated with high contract incompleteness and hence the increased relevance of trust-based relational contracts …. Contrary to expectations, we find that changes in trust do not impact the quality of highly complex objects. Instead, higher …

players to reward trust even if material incentives dictate to exploit trust. By analyzing the crowding out or crowding in of …

, we show that more trust in a relationship is associated with higher idiosyncratic investment by suppliers and better part … relationships involving higher trust, buyers are able to induce higher investment and more intense competition among suppliers - but …

To investigate the relation between trust and formal institutions, we analyze bilateral trade patterns in a sample of … 16 European countries between 1996-2009. Trust in trading partners has a significant positive effect on bilateral trade …. However, our results suggest that trust and formal institutions are substitutes, as the positive effect of trust on trade is …

We explore the determinants and effects of trust relationships between upstream suppliers and downstream producers … different measures of supplier-buyer trust, that higher levels of trust mitigate relationship-specific underinvestment in a … classical hold-up situation. Moreover, contrary to the extant literature, we show that higher levels of supplier's trust are …