Trust, Institutions and Institutional Evolution: Industrial Districts and the Social Capital Hypothesis – with Jack Knight

Much current work in the social sciences seeks to understand the effects of trust and social capital on economic and political outcomes. However, the sources of trust remain unclear. In this article, the authors articulate a basic theory of the relationship between institutions and trust. The authors apply this theory to industrial districts, geographically concentrated areas of small firm production, which involve extensive cooperation in the production process. Changes in power relations affect patterns of production;the authors suggest that they also have knock-on consequences for trust and cooperation among actors.

Henry Farrell and Jack Knight (2003), “Trust, Institutions and Institutional Evolution: Industrial Districts and the Social Capital Hypothesis,” Politics and Society, 31, 4:537-556.

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Other Writing:

Chapter in an Edited Volume

Weaponized Interdependence and Networked Coercion: A Research Agenda – with Abraham Newman

Henry Farrell and Abraham Newman, “Weaponized Interdependence and Networked Coercion: A Research Agenda,” The Uses and Abuses of Weaponized Interdependence, eds. Daniel Drezner, Henry Farrell and Abraham Newman (Brookings Institution 2021). In May 2018, Donald Trump announced that the United States was pulling out of the Joint Comprehensive Plan of Action agreement on Iran’s nuclear ...
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Binance and the End of Crypto’s Dream to Escape From Government – with Abraham Newman

On Nov. 21, Binance, the world’s largest cryptocurrency exchange, pleaded guilty to breaking U.S. anti-money-laundering laws. Its CEO has stepped down, and the company will pay $4.3 billion in penalties. While the eye-watering fine is getting the headlines, it’s the details of the agreement that really redefine the relationship between government and crypto. U.S. authorities ...
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