Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/228357
Authors: 
Xu, Elvis Cheng
Year of Publication: 
2019
Series/Report no.: 
CeDEx Discussion Paper Series No. 2019-10
Abstract: 
We conduct a field trust game under a natural experiment context to test the impacts of urbanisation on trust. We conjecture that urbanisation, defined in this context as the process of state-led rural-urban migration, contributes to a transformation of trust levels among co-villagers and towards outsiders. We test this conjecture in an experimental approach and more generally, examine whether the urbanisation will produce significant impacts on in-group trust and out-group trust. The research finds that urbanisation does not decrease significantly the trust towards co-villagers, meaning the in-group trust did not change statistically significantly. However, the trust towards outsiders does increase as a result of the state-led urbanisation. We also run a regression on the trust exhibited towards participants in the experiment and found the partial effect of whether they are co-villagers or outsiders weakens as a result of the urbanisation, and therefore conclude urbanisation decreases out-group discrimination in trust.
Subjects: 
Urbanisation
Trust
Field Experiment
JEL: 
A13
C93
O15
O18
R23
Document Type: 
Working Paper

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