We argue that social capital as proxied by regional trust and the Rule of Law can improve aggregate productivity …. Trust and the Rule of Law appear to facilitate delegation by improving co-operation, even when we examine bilateral trustʺ … between the country of origin and location for affiliates of multinational firms. We show that areas with higher trust and …

We argue that social capital as proxied by regional trust and the Rule of Law can improve aggregate productivity …. Trust and the Rule of Law appear to facilitate delegation by improving co-operation, even when we examine "bilateral trust …" between the country of origin and location for affiliates of multinational firms. We show that areas with higher trust and …

We argue that social capital as proxied by regional trust and the Rule of Law can improve aggregate productivity …. Trust and the Rule of Law appear to facilitate delegation by improving co-operation, even when we examine "bilateral trust …" between the country of origin and location for affiliates of multinational firms. We show that areas with higher trust and …

effect on innovation. We develop a simple “trapped factor” model of innovation that is consistent with these empirical …