Bloom, Nicholas; Sadun, Raffaella; Van Reenen, John - C.E.P.R. Discussion Papers - 2009
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 … stronger rule of law specialize in industries that rely on decentralization and allow more efficient firms to grow in scale …